In the last quarter of 2020, the Natural Diamond Council surveyed 5,000 respondents to better understand the desirability, perceived value, and shopping habits of American Millennials (25 – 39 y/o) and Generation Z (18 – 24 y/o). Together they represent 38% of the adult population and 60% of the demand for natural diamond jewelry. Within the next decade, their income is projected to rise by more than 70%.
When prompted with a list of luxury items and asked to consider which they would most want to buy or receive, if money were no object, only the desire for vacations would be ranked higher than natural diamond jewelry. Diamond jewelry lead as the most highly desired tangible luxury good overall. The list included luxury items such as handbags, accessories, watches clothing, electronics, etc.
Millennials and Generation Z acquire natural diamond jewelry both for themselves and as gifts. Within the cohort of 18 to 39-year-olds the following are some purchase trends with regards to natural diamond jewelry:
“Zoom-buying” could account for the trend-shift, as nearly half the natural diamond pieces acquired were earrings and necklaces. The average price paid for pieces acquired in the last 2 years was $2,400, with male purchasers paying $3,000 and females $1,900.
Almost all buyers researched before purchasing by comparing prices online, looking to loved ones for advice, and using social media or articles for inspiration. Buyers typically visited 4 or 5 retail touchpoints before making the final purchase. While the majority of the purchases were made in person, 28% were made online. About half of those receiving diamond jewelry as a gift were involved in the purchase process.
Natural Diamond Council conducted this survey to track the desirability of diamonds and reinforce the sustainability of the category. Consumer focus on items that carry emotional symbolism and value is heightened during this period as the country continues to endure the effects of the pandemic. The results show Millennials and Gen-Z both have a strong relationship to diamond jewelry where it is an inspirational luxury good, high on their wish lists.
The full Consumer Insights Report on Diamond Desirability (US) can be downloaded below.