Online purchases were higher than average among Gen Z consumers (at 42% of total Gen Z purchases), those self-purchasing (40% of total purchases) and single women (37% of total purchases). In addition, 54% of online purchases in 2021 were by people buying diamond jewelry for the first time.
[8:22am, 21 Feb, 2023]
This report attributed to Paul Zimnisky an estimate that global consumer demand for lab-grown diamonds topped natural mined diamonds by over 10 per cent for the first time in 2022, a point highlighted in a subheading.
While demand for diamonds has slumped of late, their lab-grown alternatives have actually been increasing in popularity with millennials and Gen Zers looking for a different (read: less expensive) way to express their commitment and love.
According to a 2021 Consumer Culture Report by 5WPR, Gen Z is prioritizing electronics, technology, health, and wellness. Conversely, Millennials and those from older generations prioritize travel and experiences, home goods, and furniture.
Gen Z consumers are more likely to buy sustainable, high-quality, products. 73% of Generation Z consumers are willing to pay 10% more for sustainable products, according to a report from First Insight. They value personalised products and are often drawn to brands that share their point of view on political issues.
Generation Z spends an outsized portion of their income on eating out, mobile devices, transportation and housing.
Where the real purchasing power lies. Millennials are actually the largest customer group, while Baby Boomers have the most spending power.
Nearly 3 in 4 Gen Zers say they would rather have a better quality of life than extra money in the bank. In fact, experiences matter more than money to Gen Z, as 66% say they are only interested in finances as a means to support their current interests.
In 2023, the Gen Z trend is towards more personalized and socially conscious brands. Their spending habits reflect a preference for brands that align with their values and utilize their preferred Generation Z social media platforms.
A Store of Value
Rarity determines the diamond's value. The more scarce the diamond, the more valuable it is. So, when you purchase a diamond, you're investing in something that is rare and has the potential to appreciate over time. Also, diamonds are durable and last forever, making them a great value store.
A high-level look at April 2023
Total fine jewelry sales were down 17.8% year over year. Natural diamond jewelry sales were down 19.3% year over year. There were sharp declines in total value at every retail price point range. Items over $100,000 – down 58.3%.
Diamonds typically lose between 25 and 50 per cent of their actual worth upon resale due to market fluctuations, the markup on your ring, and the decline in diamond prices. A portion is also taken out for insurance.
Diamonds generally retain a market value that either increases or remains consistent over time. This is essentially because there is a finite supply. The fundamental laws of supply and demand dictate that as demand goes up, value follows in the same direction.
In the wholesale market, diamonds are priced per unit of weight, referred to as "per carat." Updated Thursday, June 1, 2023, diamond prices moved LOWER by an average of 2.7% in May 2023. The average price per carat of all diamonds in our database was $10,449.78, down from $10,745.23 a month ago.
The average salary that young adults said would make them feel as if they've finally “made it” is $121,553 per year, with Gen Z aiming slightly higher and pining for $124,494 and millennials earmarking $120,902.
According to a study from Credit Karma, Generation Z, which is defined as people born between 1997 and 2012, accumulated a higher percentage of debt at the end of 2022. The study shows that Generation Z had, on average, $15,796 of debt between March and May of 2022.
The ability to afford material goods is motivating Gen Z to achieve financial success more than any other generation. In a generational riff on a Madonna classic, “We are living in a material world, and Gen Z is a material girl.”
Millennials' wealth more than doubled to over $9 trillion since the pandemic began, but Baby Boomers are still worth almost 8 times as much.
Gen Z Terms and Definitions
Pew Research recently defined Gen Z as anyone born 1997 onwards. Gen Z grew up with technology, the internet, and social media, which sometimes causes them to be stereotyped as tech-addicted, anti-social, or “social justice warriors.”
In an article for The Atlantic, authors Derek Thompson and Jordan Weissman describe this new economic reality emerging for Millennials, our “cheapest generation.” A multitude of factors have conspired to make young people combine their buying power and forego the promise of ownership that inspired previous generations.
From record collecting and the resurgence of Kate Bush to '90s grunge and Y2K aesthetics, Gen Z is obsessed with nostalgia.
In fact, a new poll shows these young people are among the most charitable: donating, volunteering and fundraising more than their parents' generation.
Compared to previous generations, Gen-Z is more likely to donate to nonprofit causes outside of their local community. According to Changing Our World, Inc., both Gen-Zers and Millennials are more likely to donate money to causes beyond their community, such as fighting hunger and disaster relief.