In an interview with Bloomberg, Cook claimed that India’s diamond market is growing at a double-digit rate, making it an important player in the global diamond sector.
Cook attributed India’s rise to the country’s rising internal demand for diamonds, which has increased despite a drop in cut and polished diamond exports, owing primarily to lower demand in the United States and China. This move has enabled India to establish itself as an important market, surpassing China despite a contraction in the Chinese luxury sector.
“The positive news is that India has now taken over from China and is growing at double-digit rates, making it the second-largest market globally for diamonds,” Cook said the audience.
While India is experiencing excellent growth, the same cannot be said of China, whose economic concerns are affecting luxury consumption. Cook stated that the Chinese economy’s recession has played a significant role in the reduction of demand in its luxury sector, particularly for diamonds.
“China’s demand is declining as economic development slows. Cook explained that the recovery in Chinese demand is projected to be a long-term story.
The De Beers CEO also commented on the emergence of lab-grown diamonds, which has influenced demand for natural diamonds, notably in the United States. He discussed how lab-grown diamonds, which are manufactured quickly in a controlled setting, have gained appeal, affecting the natural diamond market. Cook distinguished between the two, comparing lab-grown diamonds to replicas of masterpieces such as the Mona Lisa.
“Lab-grown diamonds may have their appeal, but they don’t compare to the authenticity and history of natural diamonds, which take billions of years to form,” Cook said, underlining the worth and rarity of naturally occurring diamonds.
As India continues to emerge as a diamond powerhouse, market dynamics are altering, with rising domestic demand compensating for declining exports. Meanwhile, China’s luxury market will be constantly monitored to predict future patterns in global diamond demand.