India becomes second-largest diamond jewellery market with 12% global share, overtakes China and Japan

Kolkata: India has officially outpaced key competitors to become the second-largest diamond jewellery market globally, capturing a 12% share of global demand (up from 10% in 2019). It now trails only the United States (53%), having overtaken both China (5%) and Japan (5%), according to the 2025 De Beers India Diamond Acquisition Study (DAS).

Commenting on this development, Shweta Harit, Global SVP, De Beers Group, said, “India’s relationship with natural diamonds is undergoing a profound structural shift, moving from traditional ‘Locker Luxury’ to a powerful medium of daily self-expression. As personal disposable income grows, a new generation of consumers is prioritizing the authenticity and rarity that only a natural miracle can provide. This ensures the category remains a vital pillar of the nation’s luxury future while reinforcing India’s position as the global heartbeat of the industry.”

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The Natural Diamond Jewellery (NDJ) market in India is officially estimated at Rs 785 billion. Overall ownership of natural diamond jewellery among women in India rose to 15% (up from 11% in 2022), while the annual acquisition rate remained steady at 3%. The addressable market comprises 67 million women (SEC A/B, Tier 1–5 cities, aged 18–64), with an average spend of approximately US$1,700 (Rs 1.4 lakh) per diamond piece.

The number of Indian households earning above $20,000 annually is forecast to grow by 16%, expanding from 32 million in 2025 to 67 million by 2030, serving as a major catalyst for future luxury spending.

NDJ demand is forecast to grow at a strong 12% CAGR from 2024 to 2030, reaching an estimated Rs 1,520 billion.

Contrary to global narratives suggesting a shift away from traditional luxury among the youth, younger demographics are the undisputed powerhouse of the Indian diamond market.

Generation Z (aged 18–28) generates a staggering 51% of the total market value (a massive 19-percentage-point increase from 2022). This is driven by population growth, a high acquisition rate (3.4%), and the highest average price paid per piece (Rs 198,000).

Millennials (aged 29–44) account for an additional 35% of the market value. Combined, Gen Z and Millennials control 86% of the Indian diamond jewellery market value.

While Tier 1 and Tier 2 cities continue to generate more than half of the market value, Tier 3 to Tier 5 cities saw an increased share of value. The most affluent SEC A segment dominates, accounting for 66% of total market value.

In 2014, the majority of diamond jewellery was kept in lockers, with 56% worn only for special occasions and just 27% worn daily. Now, 52% of acquired diamonds are worn every day, while special-occasion-only wear has declined to 10%. Outside of the wedding segment, 64% of natural diamond jewellery is self-purchased by women, primarily to celebrate personal milestones (11%) or as an impulse/self-indulgence treat.

The wedding segment remains highly lucrative, accounting for 29% of the total market value (up from 26% in 2022). Crucially, 79% of the wedding market value is contributed by brides purchasing for themselves, rather than relying solely on family gifting or in-laws.

The primary barrier to purchasing natural diamonds remains affordability (24%), followed by a preference for gold as a traditional asset (19%). Outright rejection of natural diamonds is notably low, cited by only 10% of non-acquirers.

The study provides an objective, data-backed assessment of the lab-grown diamond (LGD) sector, highlighting its role as a supplementary entry point rather than a complete replacement for natural diamonds.

While natural diamonds continue to command the majority share, LGD adoption has reached a substantial milestone: in 2024, female consumers claim to have acquired LGD jewellery representing over a fifth of the total diamond market value. The claimed acquisition rate for LGDs stands at 1.0%, compared to 2.9% for NDJ.

The average price paid for an LGD piece is INR 104,000, which is approximately 26% lower than the average NDJ piece (INR 141,000). LGD acquisitions are highly concentrated geographically and demographically. They are primarily driven by SEC A households (88%) and Tier 1 cities (60%). Delhi and Mumbai alone account for 39% of the total LGD market value.