JB Insights

China’s diamond market undergoes dramatic recalibration

Shifting consumer values and economic headwinds drive transformation

Published

1 year ago

June 13, 2025

Once a powerhouse of global luxury demand, China’s diamond market is experiencing a profound transformation, reflecting both changing consumer values and evolving economic realities. Liang Weizhang, CEO of HubWis Jewellery Strategic Creations (Guangzhou) Co., Ltd., provides an in-depth analysis of the latest trends, underlying drivers, and strategic imperatives for the industry.

Market Contraction Signals New Era

According to the Gems & Jewelry Trade Association of China, the diamond market shrank from RMB 100 billion in 2021 to RMB 43 billion in 2024-a 57% drop-while diamonds’ share of the overall jewelry market fell from 14% to 6%. This contraction stands in stark contrast to the sector’s previous rapid expansion, but signals not just a downturn, but a realignment of consumer priorities and market structures.

Jewelry Market Rebalances as Gold Surges

While diamond demand has cooled, gold jewelry has surged, increasing its market share from 58% to 73% between 2021 and 2024. Other segments, such as jade and pearls, have seen volatility. Despite these shifts, the total Chinese jewelry market remains resilient, growing from RMB 720.5 billion in 2021 to RMB 820 billion in 2023, before a modest dip to RMB 778.8 billion in 2024. This underscores a rebalancing across categories rather than a wholesale decline in jewelry demand.

Imports and Prices Reflect Downward Pressure

Customs data reveal a 73% drop in the volume of gem-quality diamond imports between 2021 and 2024, with import values plummeting 83%. Even as the volume of imports fell only 4% year-on-year in 2024, the value declined 40%, indicating significant downward pressure on prices and a shift toward more affordable, differentiated products.

Younger Consumers Drive Value Shift

Millennials and Gen Z are redefining luxury, prioritizing individuality, ethical sourcing, and value. For many, diamonds are now one of many ways to express personal identity rather than the ultimate status symbol. The rapid rise of laboratory-grown diamonds-offering sustainability and affordability-has further diversified the market, challenging the dominance of natural stones.

Macroeconomic and Demographic Factors at Play

China’s moderated GDP growth and declining marriage rates have dampened demand for traditional diamond jewelry, particularly engagement rings. Consumers are increasingly drawn to gold, which offers both adornment and investment value, while diamond brands must work harder to connect emotionally and symbolically with buyers.

Strategic Adjustments for the Future

Industry leaders caution against viewing the contraction as permanent. Instead, they advocate for differentiated offerings, stronger storytelling, and digital engagement. Regional diversity within China presents growth opportunities, especially in emerging cities with distinct consumer profiles. Early signs of stabilization-such as increased activity at the Hong Kong Jewellery Show-offer cautious optimism for a gradual recovery

A Market Redefining Itself

Liang Weizhang concludes: “China’s diamond sector is not in decline, but in the midst of redefinition. Success will depend on how well the industry interprets evolving consumer aspirations and navigates the interplay of tradition, innovation, and value.”

Related Topics:2025 Diamond Market jbinsights specialreport

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JB Insights

The Role Of Hallmarking and Transparency In Strengthening Consumer Confidence

By Suresh Krishnan, Vice President – Sales, PNG Jewellers

Published

2 days ago

September 5, 2026

JewelBuzz Spread The Buzz

In India, jewellery is equally an emotional purchase and a significant financial transaction. As consumers become more informed and digitally empowered, trust is increasingly becoming a decisive factor alongside design, price and brand reputation. Hallmarking has played an important role in creating that trust by giving consumers third-party assurance of precious-metal purity.

India’s hallmarking ecosystem has expanded significantly. BIS data shows that hallmarking registrations increased from 34,647 to 1,37,315 between April 2021 and March 2022 *1, while more than 8.72 crore gold and silver articles were hallmarked during that year. The introduction of the six-digit Hallmark Unique Identification (HUID) in 2021 has further strengthened traceability. Consumers can verify a gold article’s HUID through the BIS CARE app, adding an independent layer of assurance at the point of purchase.

For an organised retailer, this becomes particularly relevant as jewellery discovery increasingly moves online. A customer may discover a product on social media, compare it on an e-commerce platform and complete the transaction digitally. In such a journey, hallmarking helps bridge the trust gap created by the absence of physical touch and feel. When purity is independently verifiable, consumers can make online purchases with greater confidence.

The opportunity is also expanding beyond gold. BIS has brought both gold and silver under its hallmarking framework. In FY2024-25, more than 32 lakh silver jewellery articles*2 were hallmarked. The revised IS 2112:2025 introduced HUID-based hallmarking for silver on a voluntary basis from September 2025, creating greater traceability and consumer assurance in a category that is increasingly relevant to younger and value-conscious buyers.

This evolution matters commercially. KPMG’s India CX Report 2025*3 found that 27% of fine-jewellery customers are more confident in authenticity, quality and value when they trust a brand, while 9% said they would explore another brand if jewellery appeared overpriced for its quality. These findings underline why trust is not simply a compliance issue; it directly influences consideration and willingness to pay.

Contributing to the larger goal of organised and transparent trade, hallmarking has now been integrated as part of the broader customer experience across stores, CRM and e-commerce. As India’s jewellery market becomes increasingly omnichannel, the brands that communicate purity, pricing and policies clearly will be better positioned to convert digital discovery into purchase and, more importantly, build relationships that extend beyond a single transaction. The future of jewellery retail will therefore be defined not only by what consumers see, but by how confidently they can verify what they are buying and hallmarking takes care of that concern efficiently.