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“Why people don’t like to buy diamond rings anymore?”: Trending hashtag on Chinese social media

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. 

Source: Weibo, Chinese netizens’ comment on diamond rings

“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.