China’s diamond market is struggling, primarily due to the lingering effects of its one-child policy and a drop in marriage rates.
The slow recovery from strict COVID-19 lockdowns is often cited as a reason for the sluggish sales in China, the world’s second-largest diamond market. However, a deeper issue is the lasting impact of the one-child policy, which was implemented in 1979 and relaxed to a two-child policy in 2016.
This policy has slowed China’s population growth, which now stands at 1.4 billion, and reduced the number of weddings. China’s birth rate is falling, and the population is shrinking. As a result, fewer marriages are taking place, impacting demand for diamonds.
In addition to this, many couples are choosing gold over diamonds as a more secure investment or opting for lab-grown alternatives. The number of marriages in China peaked at 13.5 million in 2013 but has since fallen sharply, dropping to just 4.8 million in 2022, according to the Ministry of Civil Affairs.
One Chinese bride shared her experience with The Times, stating she preferred gold over a diamond ring. “I suggested we skip the diamond and go for gold instead,” she said. Her fiancé eventually bought a less expensive lab-grown diamond “to meet the ceremony’s expectations.”
