On October 11, 2024, the Bharat Diamond Bourse (BDB) hosted its inaugural Leadership Series, Polishing Our Future, at the BDB Convention Hall in Mumbai. This prestigious event gathered some of the most influential voices in the global diamond and jewellery industries to explore key challenges, opportunities, and market innovations. Sponsored by BDB, GIA, and IGI, the series covered topics ranging from India’s rapidly growing presence in the global market to the sustainability expectations reshaping consumer behaviour in the U.S., and the rise of the GCC as a powerhouse in luxury jewellery.
India’s Position as a Global Leader
Opening the event, Amit Pratihari, Managing Director of De Beers India, highlighted the central role India is playing in the global jewellery landscape. He pointed out that India’s jewellery market, valued at around $85 billion in 2021, is set to reach $120 billion by 2030. This shift, driven by a rapidly expanding middle class, is fueling demand for premium, personalised jewellery. “India’s middle class is driving a significant shift towards premium consumption, and diamond jewellery is becoming a key part of that transformation,” Pratihari remarked.
The digital revolution sweeping India has also contributed to this growth. “The penetration of digital payments and e-commerce is transforming consumer behaviour, allowing for a more seamless omnichannel experience,” Pratihari noted, referencing the surge in online jewellery sales. This shift in consumer behaviour has been accelerated by younger generations, increasingly turning to online platforms for discovery and purchase, reflecting broader global trends.
Industry data further supports Pratihari’s view. A 2024 report from McKinsey forecasts that by 2030, India’s share of global luxury jewellery sales could rival that of China. This transformation is also set against a backdrop of declining global diamond supply, making India’s role in stabilising and growing the sector even more crucial.
Sustainability as a Driver of Consumer Choice in the U.S.
David Bouffard, a former VP at Signet and now a consultant, drew attention to a significant shift in the U.S. market, where sustainability is becoming a central driver of consumer purchasing decisions. “Sustainability is no longer just a talking point—it’s becoming central to consumer demand,” Bouffard explained, reflecting the growing expectation for ethically sourced and responsibly mined diamonds.
Bouffard’s comments come at a time when the jewellery industry is under increasing scrutiny. According to a recent 2024 National Retail Federation report, 60% of U.S. consumers now say that sustainability influences their purchasing decisions. This means brands that do not meet these expectations risk losing a significant portion of their market share. Bouffard stressed that for the U.S. jewellery industry to thrive, brands must build trust through transparency in sourcing and sustainability practices.
This growing emphasis on sustainability is a reflection of global trends, where environmental, social, and governance (ESG) factors are reshaping industries, with the diamond trade no exception. As more retailers align their values with consumer expectations, there is significant potential for growth in the U.S. jewellery market, provided companies keep sustainability at the forefront.
Business Wisdom from Mythology
Bringing a different perspective to the conversation, renowned author and mythologist Devdutt Pattanaik connected ancient Indian mythology to modern business strategies. He highlighted the cyclical nature of business, using mythology to illustrate how companies can navigate uncertainty and downturns. “In mythology, we often see cycles of prosperity and decline, and these patterns can teach us about resilience and the importance of adaptability in the business world,” Pattanaik shared.
Pattanaik’s reflections were particularly relevant in a post-pandemic world, where businesses across industries—including the diamond trade—are grappling with challenges ranging from supply chain disruptions to shifting consumer preferences. His session encouraged industry leaders to embrace patience and long-term thinking, drawing inspiration from stories that have stood the test of time.
Global Supply Challenges and China’s Decline
Internationally renowned industry analyst Paul Zimnisky delivered a sobering analysis of the global diamond market, particularly focusing on the sharp downturn in China’s demand. “China’s demand for diamonds has fallen off a cliff in the last couple of years,” Zimnisky explained, underscoring the gravity of the situation in what was once the industry’s second-largest market. This sharp decline has been driven by economic slowdowns and shifts in consumer sentiment, exacerbated by post-pandemic uncertainties.
Despite this, Zimnisky highlighted the role that India will play in stabilising global demand. “India is definitely going to be the large growth market for diamond demand, but it will take time to offset what’s been lost in China.” This shift is part of a broader trend that sees global diamond supply dwindling, with major mines approaching depletion. As Zimnisky noted, “We are entering a period where supply constraints could begin to support prices, creating a different set of challenges and opportunities for the industry.”
According to recent reports, global diamond production is set to decline further, with only a handful of new mines coming online by the end of the decade. This makes India’s role in demand growth all the more pivotal, as it will be one of the key markets able to absorb supply and fuel the industry’s future.
The GCC as a Beacon of Growth
Tawhid Abdullah, CEO of Jawhara Jewellery Group, focused his session on the significant growth in the GCC region, particularly in Saudi Arabia. “Saudi Arabia represents 65% of the total jewellery business in the Middle East,” Abdullah emphasised, reflecting the region’s rising influence in the global luxury market. He pointed to the fusion of gold and diamond jewellery as a key factor driving profitability in the region.
Abdullah also underscored the importance of strong business ties between the GCC and India, stating, “If I had to choose a global partner, India would be my first choice.” His remarks were a reminder of the increasingly interconnected nature of the global jewellery trade, with the GCC market poised to continue expanding its reach.
The growth of the GCC as a major jewellery hub is supported by a 2024 World Bank report, which projects that the region’s luxury market will grow by 6% annually over the next five years. This growth is driven by strong consumer spending in the UAE and Saudi Arabia, coupled with government initiatives aimed at boosting the luxury and tourism sectors.
Quiet Luxury and Consumer Trends
Ananthanarayanan Hariharan, CEO of Novel at Aditya Birla Jewels, provided insights into the shifting preferences of high-net-worth consumers, particularly the rise of ‘quiet luxury.’ “Quiet luxury is becoming a key trend among wealthy consumers—they no longer want flashy, conspicuous displays of wealth, but rather seek subtlety and sophistication in their purchases,” Hariharan noted.
This trend, which has been gaining traction globally, reflects a broader move towards understated luxury, where consumers are increasingly looking for pieces that hold personal significance rather than ostentatious items. Hariharan emphasised that for the jewellery industry to remain relevant, it must adapt to these evolving tastes, creating designs that speak to individuality and emotional connection.
A Shared Vision for the Future
The BDB Leadership Series concluded with a shared sense of optimism for the future, despite the challenges outlined. The consensus was clear: through collaboration, innovation, and a focus on sustainability, the diamond and jewellery industries are well-positioned to weather current difficulties and emerge stronger. As Paul Zimnisky noted, “It’s easy to be pessimistic right now, but this industry remains an $80 billion global market with plenty of growth potential over the long term.”
With India, North America, and the GCC emerging as the key growth markets, and sustainability becoming a central tenet for future development, the industry is poised for transformation. The BDB Leadership Series showcased that while the road ahead may be challenging, it is also full of opportunity.
