JB Insights

China’s diamond market undergoes dramatic recalibration

Shifting consumer values and economic headwinds drive transformation

Published

12 months 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

India’s ₹361 Lakh Crore Gold Reserve Lies Idle; PM Modi Calls For Recycling To Cut Imports

With An Estimated 32,000 Tonnes Of Gold Sitting Unused In Homes and Temples, The Government Sees A Massive Opportunity To Reduce Imports, Strengthen The Economy, and Build A More Sustainable Gold Ecosystem.

Published

2 days ago

June 3, 2026

JewelBuzz Spread The Buzz

India is sitting on one of the world’s largest untapped gold reserves, with 30,000–32,000 tonnes of gold held by households and temple trusts across the country. Valued at nearly $3.8 trillion (around Rs. 361 lakh crore), much of this gold remains locked away in cupboards, lockers, and vaults, generating little economic value.

Highlighting the importance of this dormant asset, Prime Minister Narendra Modi recently encouraged citizens to consider recycling idle gold rather than relying solely on newly imported supplies. The initiative aims to bring existing gold back into circulation and make better use of resources already available within the country.

The appeal comes at a time when India continues to depend heavily on imported gold to meet domestic demand. During 2025-26, the country spent approximately $72.4 billion (Rs. 6.88 lakh crore) on gold imports, making the precious metal one of the largest contributors to the import bill.

According to experts, increasing gold recycling could deliver significant economic benefits. Every gram of recycled gold reduces the need for an equivalent amount of imports, helping ease pressure on foreign exchange reserves while also supporting efforts to narrow the country’s current account deficit.

Even a small shift could have a substantial impact. Industry estimates suggest that if just 1% of the gold held by households and temples is recycled each year, India’s gold imports could decline by approximately 25% to 30%.

The vast stockpile of idle gold is rooted in India’s longstanding cultural and financial relationship with the metal. For generations, gold has served as a store of wealth, a safeguard during emergencies, and a symbol of family security and prosperity. As a result, many families continue to hold jewellery that is rarely used but seldom sold.

Viewed from a broader perspective, the government sees this dormant gold stock as a valuable domestic resource. Bringing a greater share of it into the formal economy could help reduce dependence on imports, enhance economic stability, and create a more sustainable gold supply chain for the future.