In China, the diamond ring market is shrinking, the market size of which decreased by 18% as compared to 2022 from 82 billion RMB (approximately 11.25 billion USD). Facing a fatigued market, Darry Ring, known as DR, which specializes in engagement rings and marriage rings, experienced a sales decline of 20% in 2022 from the previous year and a net profit plummet of 43.98%. These figures triggered discussions on Weibo with the hashtag #Why people don’t like to buy diamond rings anymore# (当代人为什么不爱买钻戒了), which garnered over 4.13 million times in the fourth week of August.
Marriage decline in China: record low numbers impact demand for rings
For one thing, marriages in China hit a record low last year. The number of couples married dropped from 7.63 million to 6.83 million in 2022, a decrease rate of around 10.5%. This decline in marriages has naturally led to a lower demand for engagement and marriage rings. Additionally, newlyweds in China are opting for substitutes for diamond rings with a higher investment value.
Diamonds to gold: China’s shift in wedding gift preferences
In the first quarter of 2023, China’s consumption of gold jewelry increased by 12.29% compared to the previous year, reaching a total of 189.61 tons. Meanwhile, the price of gold has been on a steady increase this year, which usually is a sign of an economic slowdown with soaring demand. In contrast, the price of diamonds has plummeted to 18% as compared to its highest point in 2022 February, further accelerating the shift of preferences from diamonds to gold when it comes to wedding gifts among young people in China.
“Don’t waste money on a story.” A netizen from Henan said.
Market shift: China’s diamond ring demand wanes amidst changes
- The diamond ring market in China is shrinking, with a market size decline of 18% compared to 2022, triggering discussions on social media.
- A record low in marriages, down by around 10.5% in 2022, has led to decreased demand for engagement and marriage rings. Chinese newlyweds are also opting for higher-investment-value substitutes for diamond rings.
- In Q1 2023, China’s gold jewelry consumption rose by 12.29%, reaching 189.61 tons. Gold prices are increasing, while diamond prices have dropped by 18%, leading to a preference shift from diamonds to gold for wedding gifts among young Chinese, reflecting changing market dynamics.
