Past summer many media platforms as The Economist, The Daily Beast, Huffington Post, CNBC and CBS News announced that millennials poised to turn their backs on diamond jewelry as a status symbol. However, De Beers released in their Diamond Insight Report that millennials are far from turning their backs on diamond jewelry as they have spent nearly $26 billion USD on diamond jewelry in 2015. Beating any other generation in acquiring diamonds.
The four key markets that are strong in buying diamond jewelry are the U.S, China, Japan, and India. In 2015 millennials purchased a comprised 45% of all retail diamond sales in the four key markets, being the largest group. From which 41% of the sales were done in the U.S.
The reason why the industry is concerned about the diamond buying behavior of millennials is that it is critical for the long-term economic health of the diamond industry. As millennials are in general the future for the retail sales because they represent the most important demographic point within the jewelry, the group of marrying age. Meaning they are the ones that will buy the industry’s most iconic piece: diamond engagement rings. So as Forbes describes “it’s a reliable source of revenue, as well as an accepted gateway: the item that introduces young people to diamonds and, by way of marriage proposals, creates an unforgettable romantic association with gemstones.”
While these statistics are here it is reasonable to question why many of us share that millennials are turning their backs on diamond jewelry. Well, that is driven by the facts that millennials value experiences like travel over material items. Creating doubts if a diamond is the symbol of love as social consciousness rises.
For now, the statistics of 2016 do not support any sort of conclusions that millennials are turned as for the U.S. key market alone rose $6 billion in diamond sales from 1999 when it was $10 billion. In addition, a survey of to-be-brides revealed that couples nowadays spend $5,871 on the engagement ring. And surprise, the buyers were mainly millennials, from which the average age in the U.S. to marry is 28 years and the oldest of the millennials group is 35 years.
Yet, De Beers admits that the diamond industry needs to work hard to maintain the interest of this group as a luxury in the market rises. But if you’re wondering whether it’s already happening…Check out the latest trend in “ring selfies”.