In an interview with Bloomberg, Cook revealed that India’s diamond market is experiencing double-digit growth, making it a vital player in the global diamond industry.
Cook attributed India’s rise to its burgeoning domestic demand for diamonds, which has seen a surge despite a decrease in exports of cut and polished diamonds, mainly due to reduced demand in the US and China. This shift has allowed India to establish itself as a key market, surpassing China amid a slowdown in the Chinese luxury sector.
“The positive news is that India has now taken over from China and is growing at double-digit rates, making it the second-largest market globally for diamonds,” Cook said.
While India is seeing impressive growth, the same cannot be said for China, where economic challenges are impacting luxury demand. Cook noted that the Chinese economy’s slowdown has been a key factor in the decline of demand within its luxury sector, especially for diamonds.
“China is facing a demand decline due to a slowdown in economic growth. The recovery of demand in China is expected to be a longer-term story,” Cook explained.
The De Beers CEO also addressed the rise of lab-grown diamonds, which have influenced the demand for natural diamonds, particularly in the United States. He highlighted how lab-grown diamonds, produced rapidly in a controlled environment, have gained popularity, impacting the natural diamond market. However, Cook made a distinction between the two, comparing lab-grown diamonds to reproductions of masterpieces like the Mona Lisa.
“Lab-grown diamonds may have their appeal, but they don’t compare to the authenticity and history of natural diamonds, which take a billion years to form,” Cook stated, emphasizing the value and uniqueness of naturally occurring diamonds.
As India continues to grow as a diamond powerhouse, the market dynamics are shifting, with the nation’s expanding domestic demand compensating for declines in exports. Meanwhile, China’s luxury market will be watched closely to gauge future trends in global diamond demand.
