Global jewellery sales are expected to grow at 4.6 per cent year-on-year to reach $185 billion in 2010 and $230 billion in 2015, according to a report jointly released by India's Gem & Jewellery Export Promotion Council (GJEPC) and market consultants KPMG, at a function held in Mumbai last evening.
However, the industry has the potential to reach $280 billion if it initiates certain programs, said KPMG India Director advisory services Neelesh Hundekari.
Diamond jewellery will be the slowest growing segment at a rate of 3.3 per cent and will attain a size of $95 billion by 2015, it adds.
The report notes that within the next nine years China and India together will emerge as a market equivalent to the US.
Also, cutting and polishing centres will be primary beneficiaries of the anticipated fall in rough prices and value addition in polishing will increase from 29.3 per cent in 2005 to 34.1 per cent in 2015.
However, India's share of the processing pie in value terms will drop from 57 per cent today to around 49 per cent by 2015. China will emerge as a strong player with 21.3 per cent of the diamond processing share, the report adds.
As an outcome of local beneficiation, by 2015, around 9.4 per cent of the world's diamonds by volume will be processed locally by mining countries, with Angola, Namibia and Botswana emerging as profitable cutting and polishing centres, especially for high-quality rough.
The cuttingand polishing industry in Israel, the US and Belgium will shrink to marginal levels and together they will polish only 0.6 per cent of the global rough by volume and 6.8 per cent by value, in 2015.
Rough supplies are also expected to become more fragmented and the share of centralised distribution will decrease from the current 55 per cent to less than 40 per cent in value terms.
Gem & Jewellery Export Promotion Council
marketing@alchempro.com
