# Market Condition

## Global Diamond Market

![](https://3494954238-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fg34xtQvG324bcSwTsqtq%2Fuploads%2FvvqAaAIb6lTJZUzh1HI2%2F%EA%B7%B8%EB%A6%BC1.png?alt=media\&token=b21fd3af-25ee-4d34-a46d-601e4a61cc02)

* The global diamond market scale was valued at $87.11 billion in 2018 and is expected to grow at an annual average of 3.0% during the period from 2019 to 2030. The United States has the largest market share in the world and has grown from 42% to 48% until 2014.
* With the growth of the middle class and high net assets households in China and India, it is expected to increase positive long-term demand (Middle-Class Standard: In China, annual disposable income is $15,000 \~ $45,000. In India, $10,000 \~ $25,000 defined as the household).
* The long-term expectation of real GDP and PDI is positive; both are expected to grow by 3% annually despite the COVID 19 situation.

## Major Diamond Distribution Business Condition

### Annual Production, Million Carat

![Sources: Company data; Kimberley Process; expert interviews; Bain & Company](https://3494954238-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fg34xtQvG324bcSwTsqtq%2Fuploads%2FNDek3TgcsfiaWd9gTI8d%2Fmdd%201.png?alt=media\&token=5e9c85b5-bd68-414f-9bb5-04b57ccb2da0)

* Diamond production has declined by about 5% after the definite point has been put in 2017, and has drop around 20% by 2020.

### World Wide Diamond Sales (including inventory sale) by producers, Billions of Dollars

![Sources: Company data; Kimberley Process; expert interviews; Bain & Company](https://3494954238-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fg34xtQvG324bcSwTsqtq%2Fuploads%2FhQ0q1033rOVvO4mlD00C%2Fmdd2.png?alt=media\&token=1dde4cbc-f992-4dfd-b276-110d97c59116)

* Diamond sales has been declined due to COVID 19 – 33%

## Distribution Structure & E-Commerce Market Trend

### Diamond Distribution Structure

![](https://3494954238-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fg34xtQvG324bcSwTsqtq%2Fuploads%2F90wICZJYcbbMPtosdqIA%2Fdds.png?alt=media\&token=5137b346-b343-45a6-a83f-04d734e0388a)

* It is a very complicated process to get a diamond into customers’ hands. After the gemstone is collected, it will be processed into a diamond by the polishing company. It will be only passed to consumers’ hands through the intermediate collector → dealer → wholesaler → retailer.

### Trend of E-Commerce

![](https://3494954238-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fg34xtQvG324bcSwTsqtq%2Fuploads%2FHOWjCaApwsFHT6spny7U%2Ftrend%20of%20e%20commerce.png?alt=media\&token=fb185c99-6464-49d5-8846-601348fa59dd)

* The E-Commerce market of diamond increased significantly in 2020 due to COVID 19.