India's Diamond Market Set to Double by Decade-End Despite Global Challenges: De Beers CEO
De Beers CEO Al Cook projects India's diamond market will double by decade-end, supported by 11% growth over the past 12 months and four consecutive years of double-digit expansion. The company plans aggressive expansion from 5 to 25 Forevermark stores by year-end, targeting Tier 1 and Tier 2 cities. Despite challenges from 50% US-India tariffs affecting the rough diamond segment, retail prices have remained stable, and Cook remains confident in India's 2,000-year cultural connection with diamonds driving continued demand growth.
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De Beers Group CEO Al Cook has expressed strong confidence in India's diamond market potential, projecting it will double by the end of the decade despite facing global geopolitical turbulence and trade disruptions. Cook emphasized that the fundamental cultural connection between Indian consumers and diamonds continues to drive robust demand across the market.
Strong Growth Momentum Continues
India's diamond market has demonstrated remarkable resilience with consistent double-digit growth patterns. The market performance over recent periods shows sustained momentum:
| Performance Metric: | Details |
|---|---|
| Growth Rate (Past 12 Months): | ~11% |
| Consecutive Years of Double-Digit Growth: | 4 years |
| Cultural Heritage: | 2,000-year history with diamond jewellery |
| Market Position: | One of fastest-growing diamond markets globally |
Cook described the relationship as a fundamental "love affair between India and diamonds" that remains intact despite global market uncertainties. He noted that India's GDP growth is directly translating into increased diamond demand, reinforcing the country's position as a critical market for the industry.
Market Dynamics and Pricing Trends
The CEO drew important distinctions between different segments of the diamond market, particularly regarding pricing stability. Retail diamond prices in both India and the United States have maintained stability over the past five years, contrasting with pressures faced in the rough diamond segment.
Cook identified global trade tensions as a primary challenge, specifically highlighting the impact of tariffs between the US and India. The 50% tariffs have created significant challenges for the industry, given that the US represents the world's largest diamond consumer market while India serves as the global hub for cutting and polishing operations. Cook suggested that a future US-India trade agreement could trigger a "strong resurgence" in trade and improve overall industry health.
Aggressive Expansion Strategy
De Beers is implementing a comprehensive growth strategy centered on India, reflecting the company's long-term commitment to the market. The strategy encompasses multiple investment areas including marketing, brand-building, and retail expansion, with high-profile initiatives such as association with the Indian Premier League.
Forevermark Retail Expansion
The company's retail expansion plans through the Forevermark brand represent a significant component of its India strategy:
| Expansion Details: | Specifications |
|---|---|
| Current Store Count: | 5 stores |
| Target by Year-End: | 25 stores |
| Focus Areas: | Tier 1 and Tier 2 cities |
| Geographic Expansion: | Beyond Delhi and Mumbai |
| Store Type: | Premium diamond jewellery outlets |
| Additional Channel: | Growing online presence |
Cook mentioned the opening of the fifth Forevermark store in Mumbai, describing it as a "really premium store offering diamond jewellery to the Indian consumer."
Addressing Market Segmentation
The CEO acknowledged the evolving market landscape, particularly the rise of lab-grown diamonds following moves by established players. Cook recognized demand for "low-cost lab-grown diamonds sold in India to people who want cheap, fun, fashionable jewellery" while maintaining confidence in natural diamonds' long-term appeal.
De Beers is focusing on consumer education regarding the distinction between lab-grown diamonds produced in days and natural diamonds formed over billions of years. Cook expressed confidence that Indian consumers will continue to value "natural, unique, rare" products for marking life's most important moments, drawing parallels to consumer sophistication in gold purchasing decisions.
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