India has rapidly emerged as a major force in the global diamond jewellery industry, overtaking key markets like China and Japan. With a growing consumer base and evolving buying trends, the country now holds a significant position in the global luxury segment.
India has secured the second spot in the global diamond jewellery market, accounting for approximately 12% of worldwide demand. This marks a notable increase from its 10% share in 2019, highlighting a steady upward trajectory.
According to insights from De Beers, India now ranks just behind the United States, which continues to dominate the market with a 53% share.
In contrast, traditional strongholds such as China and Japan have seen their shares decline to around 5% each. This shift underscores a broader change in global demand patterns, with India emerging as a key growth driver.
India’s Natural Diamond Jewellery (NDJ) market is currently valued at approximately ₹785 billion. This growth is supported by increasing ownership levels and a widening consumer base across urban and semi-urban areas.
The rising demand for diamond jewellery reflects not only higher purchasing power but also changing perceptions around luxury and personal style. Diamonds are no longer viewed solely as long-term investments but are increasingly embraced as everyday fashion accessories.
One of the primary factors driving the market is the steady rise in disposable incomes. As more households move into higher income brackets, spending on luxury goods like diamond jewellery has increased significantly.
The number of households earning over $20,000 annually is projected to grow from 32 million in 2025 to 67 million by 2030. This surge in affluent consumers is expected to substantially boost demand in the coming years.
The addressable market for diamond jewellery in India has grown considerably. Currently, around 67 million women across urban and semi-urban regions are considered potential buyers.
Ownership levels among Indian women have also risen to approximately 15%, indicating a steady penetration of diamond jewellery into mainstream consumption.
The NDJ market is expected to grow at a compound annual growth rate (CAGR) of 12% between 2024 and 2030. By the end of this period, the market size is projected to reach nearly ₹1,520 billion.
This growth trajectory positions India as one of the fastest-growing diamond jewellery markets globally.
A significant shift in demand is being driven by younger consumers. Generation Z accounts for approximately 51% of the market value, while millennials contribute an additional 35%.
Together, these two groups make up 86% of the total market, highlighting their dominant influence on purchasing trends.
Younger buyers are redefining the role of diamond jewellery. Instead of viewing it purely as a financial asset, they see it as a means of self-expression and personal style.
This shift has led to increased daily usage, with more than half of newly purchased diamond jewellery being worn regularly rather than reserved for special occasions.
Self-purchasing has become a prominent trend, particularly among women. Many consumers are now buying diamond jewellery to celebrate personal achievements, milestones, or simply as discretionary purchases.
This marks a departure from traditional buying patterns, where jewellery purchases were primarily associated with family events or gifting.
Despite the rise of self-purchasing, the wedding segment remains a key contributor to the market. Approximately 29% of diamond jewellery demand is still driven by weddings, reflecting the cultural significance of jewellery in Indian ceremonies.
While the market outlook remains positive, certain challenges persist. Affordability continues to be a concern for a segment of consumers, especially when compared to gold, which remains deeply rooted in Indian culture.
Additionally, some buyers still perceive gold as a safer investment option, which can limit the adoption of diamond jewellery in certain demographics.
The study also highlights the growing presence of lab-grown diamonds (LGDs) in the Indian market. These diamonds are gaining traction as a more affordable alternative, particularly among first-time buyers.
However, natural diamonds continue to dominate the market, with LGDs primarily concentrated in metropolitan areas and higher-income groups.
This coexistence of natural and lab-grown diamonds is expected to further diversify the market and attract a broader range of consumers.
India’s rise in the global diamond jewellery market reflects a combination of demographic advantages, economic growth, and evolving consumer preferences.
With a young population, increasing urbanisation, and rising incomes, the country is well-positioned to drive future demand in the global diamond industry.
Conclusion
India’s emergence as the second-largest diamond jewellery market marks a significant milestone in its journey as a global luxury hub. Backed by strong economic fundamentals and shifting consumer behaviour, the country is set to play a pivotal role in shaping the future of the diamond industry.
As demand continues to grow, India’s influence on global market trends is expected to strengthen further, making it a key destination for both domestic and international jewellery brands.