Global Diamond Market Overview, 2024-29

The worldwide diamond industry exemplifies economic significance, cultural meaning, and sophisticated supply chains that span continents. Diamonds, renowned for their rarity, tenacity, and appeal, have transcended their status as jewels to become global symbols of riches, commitment, and prestige. Diamond extraction, processing, and distribution represent a multidimensional sector that crosses geographical boundaries, economic cycles, and ethical considerations. A diamond's path from mine to market is a complex one, involving a global network of players.

Major diamond-producing countries such as Russia, Botswana, Canada, and Australia all play important roles in world supply, with each offering unique geological resources and regulatory frameworks. Once retrieved, raw diamonds travel through a series of intermediaries, including miners, cutters, polishers, and wholesalers, before reaching the hands of retailers and consumers. Along this journey, diamonds are subject to rigorous grading standards and certification protocols established by industry organizations such as the Gemological Institute of America (GIA) and the International Gemological Institute (IGI), ensuring transparency and authenticity in the marketplace. Consumer trends, cultural influences, and economic situations all have an impact on the worldwide demand for diamonds. Traditional markets in North America, Europe, and Japan have historically been important sources of diamond demand, driven by cultural norms such as engagement ring traditions and gift-giving occasions. However, growing Asian countries, particularly China and India, have become increasingly key drivers of diamond consumption, thanks to rising wages, urbanization, and altering cultural norms. Consumer preferences in the diamond sector have also changed, with an increased demand for ethically sourced diamonds, traceability, and personalization. Millennial and Generation Z consumers, in particular, place a higher focus on sustainability and social responsibility when making purchasing decisions, forcing industry stakeholders to respond with initiatives such as the Kimberley Process Certification Scheme and blockchain-based traceability solutions.

According to the report “Global Diamond Market Outlook, 2029”, the market is anticipated to cross USD 140 Billion by 2029, increasing from USD 110.41 Billion in 2023. The market is expected to grow with 4.85% CAGR by 2024-29. Ethical questions regarding diamond sourcing, notably conflict diamonds (also known as blood diamonds) and labor standards in mining countries, have received a lot of attention in recent years. Consumers, particularly younger generations, are seeking greater transparency and ethical accountability from diamond companies. Technological advances have made it possible to produce lab-grown diamonds with the same physical and chemical qualities as natural diamonds.

These lab-grown diamonds are becoming increasingly popular among consumers looking for more sustainable and ethically sourced alternatives to mined diamonds, posing a challenge to established diamond mining corporations. The diamond industry has begun to use blockchain technology to increase transparency and traceability throughout the supply chain. Blockchain platforms allow buyers to verify the origin and authenticity of diamonds, addressing concerns about ethical sourcing and the existence of conflict diamonds on the market. The diamond cutting and polishing sector has undergone major technological breakthroughs in recent years, resulting in increased precision, efficiency, and quality. Automated cutting machines and computer-aided design (CAD) software have transformed the diamond cutting process, allowing manufacturers to create elaborate designs while increasing the value of rough diamonds. Beyond engagement rings, diamond jewelry comes in a variety of designs and styles to suit a wide range of consumer preferences and fashion trends. From classic solitaire pendants to intricate diamond-encrusted bracelets, the diamond jewelry market provides a wide range of possibilities for personal decoration and self-expression. The issue of conflict diamonds, which are mined in areas beset by civil unrest and exploited to fund armed conflicts, has sparked international alarm. Initiatives such as the Kimberley Process Certification Scheme seek to control the raw diamond trade and prevent conflict diamonds from entering the legitimate market, despite ongoing enforcement and compliance issues.

Market Drivers

• Supply dynamics: The global diamond market is heavily influenced by supply dynamics, which affect pricing, availability, and market trends. Diamonds, produced millions of years ago deep under the Earth's mantle, are very uncommon geological formations that require certain geological circumstances to form. As a result, the supply of natural diamonds is intrinsically limited, with only a small percentage of mined diamonds considered suitable for use in jewelry due to their quality and size. Major diamond-producing countries include Russia, Botswana, Canada, and Australia, all of which have considerable geological resources and diamond extraction facilities. These countries use a variety of mining techniques, ranging from open-pit mines to underground operations, to reach diamond reserves deep within the Earth's crust. Additionally, artisanal mining operations in countries like the Democratic Republic of the Congo contribute to the overall supply, albeit on a smaller scale.
• Economic growth and wealth creation: Economic expansion and rising wealth levels are the primary drivers of the global diamond market. Diamonds are considered luxury commodities, and when economies expand and people amass wealth, there is a greater demand for luxury things like diamond jewelry. Emerging nations, particularly in Asia, have experienced rapid economic expansion in recent years, resulting in a boom in diamond consumption. Furthermore, discretionary spending on luxury items tends to rise during times of economic boom, increasing demand for diamonds.

Market Challenges

• Ethical sourcing concerns: One of the most pressing issues confronting the diamond business is maintaining ethical sourcing methods across the supply chain. Conflict diamonds, often known as blood diamonds, continue to erode customer confidence and ruin the industry's brand. Despite the introduction of efforts such as the Kimberley Process Certification Scheme, which tries to reduce conflict in the diamond trade, there are still issues in maintaining compliance and guaranteeing transparency in diamond sourcing.
• Shifts in consumer preferences: Changing consumer tastes and attitudes towards luxury items pose a challenge to the diamond business. Millennials and Generation Z buyers, in particular, prefer experiences over material goods and prioritize sustainability and ethical sourcing in their purchase decisions. This demographic transition, combined with changing fashion trends and cultural norms, necessitates that diamond firms modify their marketing tactics and product offerings to align with shifting consumer tastes.

Market Trends

• Rise of lab-grown diamonds: Lab-grown diamonds are gaining popularity as buyers prioritize sustainability and ethical sources. These diamonds, which are chemically and physically comparable to natural diamonds but are created in a controlled laboratory setting, provide an environmentally benign alternative to mined diamonds. As production techniques improve and production prices fall, lab-grown diamonds become more accessible and affordable, posing a challenge to traditional diamond mining corporations.
• Customization and personalization: There is an increasing desire for diamond jewelry designs that are customized and individualized to specific likes and preferences. Consumers are looking for unique and distinctive pieces that reflect their personality, lifestyle, and values, which is boosting demand for bespoke jewelry. Diamond firms are responding to this trend by providing customization choices such as engraved phrases, unique settings, and individual design consultations, allowing customers to create one-of-a-kind pieces that speak to them on a personal level.

COVID-19 Impacts

The COVID-19 pandemic has significantly impacted the global diamond industry, causing disruptions across the entire supply chain and influencing both demand and supply dynamics. One of the primary challenges faced by the industry was the temporary closure of mines, cutting centers, and retail stores due to lockdowns and travel restrictions imposed to curb the spread of the virus. These closures led to a slowdown in diamond production, as mining activities were temporarily halted and manufacturing and trading operations were disrupted. On the demand side, the economic uncertainty triggered by the pandemic resulted in a decline in consumer spending, particularly on non-essential luxury items like diamonds.

The closure of physical retail stores and restrictions on social gatherings also affected the demand for diamond jewelry, as traditional occasions for purchasing, such as weddings and celebrations were postponed or scaled down. Additionally, the decline in international tourism further impacted sales, as purchases by tourists have been a significant driver for the diamond market. The diamond industry also faced challenges related to the workforce, with labor shortages and difficulties in maintaining safe working conditions during the pandemic. Social distancing measures and health protocols disrupted the traditional practices of diamond cutting and polishing, slowing down the production process. Furthermore, the shift towards remote work and digital communication impacted the marketing and sales strategies of the diamond industry. Traditional in-person sales events and exhibitions were either canceled or moved to virtual platforms, requiring companies to adapt to new ways of reaching customers.

In terms of product segment market is segmented into natural and synthetic. Synthetic product is expected to grow at fastest rate in global diamond market.

Synthetic diamonds are less expensive than natural diamonds, especially in industrial applications where durability, hardness, and performance take precedence over rarity or looks. Synthetic diamonds can be created in controlled laboratory circumstances at a lower cost than real diamonds, making them a more cost-effective choice for cutting, drilling, and abrasion applications. Diamond synthesis technologies have advanced dramatically, improving the quality and efficiency of synthetic diamond manufacture. Innovations in high-pressure, high-temperature (HPHT) and chemical vapor deposition (CVD) technologies have enabled the production of larger, higher-quality synthetic diamonds at lower cost.

These technological improvements have broadened the spectrum of applications for synthetic diamonds and boosted their competitiveness against real diamonds. Synthetic diamonds provide greater versatility and customization choices than genuine diamonds. Manufacturers may create synthetic diamonds in a variety of shapes, sizes, and colors to fulfill individual customer needs and design preferences. This adaptability facilitates the development of novel diamond-based products and uses in industries such as electronics, optics, and healthcare, resulting in increased demand for synthetic diamonds in growing markets and specialized applications. The synthetic diamond business benefits from continual investment in R&D, which drives continuous innovation and improvement in production techniques, material qualities, and applications. Research institutions, universities, and private enterprises are working to investigate new diamond synthesis methods, develop enhanced processing technologies, and discover new applications for synthetic diamonds. This innovative method drives industry growth and widens the possible usage of synthetic diamonds in emerging industries and technologies.

Based on application segment market is categorised into jewellery and industrial. Among them jewellery application is expected to play major role in global diamond market. Based on distribution channel market includes B2B and B2C. B2C distribution channel is predicted to grow at significant pace in global diamond market.

Diamonds have always been revered for their beauty, rarity, and symbolic meaning, making them a popular option for jewelry in all cultures and societies. Diamonds have cultural importance as symbols of love, devotion, and celebration, appearing in everything from engagement rings to anniversary gifts. This enduring appeal ensures that diamond jewelry remains in high demand in traditional countries while also driving growth in emerging markets that emulate Western norms. Diamond jewelry represents wealth, elegance, and status, appealing to rich clients looking for high-quality, timeless pieces.

Luxury companies and famous jewellers use the allure of diamonds to produce exclusive collections and iconic designs that appeal to discerning customers. Diamonds link with elegance and grandeur increases their desirability and allows jewelry dealers to charge premium rates, generating revenue growth in the diamond market. The advent of e-commerce platforms has revolutionized the retail scene, providing consumers with increased convenience, accessibility, and choice when buying diamond jewelry online. B2C e-commerce platforms enable diamond sellers to reach a larger audience than traditional brick-and-mortar stores, tap into global markets, and cater to a wide range of consumer tastes. The convenience of online shopping, combined with features like product personalization, virtual try-ons, and safe payment choices, improves the overall customer experience and boosts sales growth in the B2C distribution channel. B2C diamond merchants are implementing omnichannel retailing techniques to effectively combine online and offline channels while providing a uniform buying experience across different touch points. Omnichannel commerce enables customers to browse products online, visit actual stores for in-person consultations or try-ons, and make purchases through their preferred channel.

Based on report market includes five major regions North America, Europe, Asia-Pacific, South America and Middle East & Africa. Middle East & Africa region is expected to play key role in global diamond market.

The Middle East and Africa region, with its diverse landscapes, rich cultural heritage, and plenty of natural resources, is a prominent player in the global diamond industry. Countries in this region have a long history of involvement in the diamond trade, and they have emerged as key players in both diamond production and consumption, providing life and energy to the global diamond business. Several countries in the Middle East and Africa have large diamond reserves, the majority of which are located in Africa. Botswana, South Africa, Angola, and Namibia are major rough diamond producers, contributing significantly to world diamond output.

Botswana, in particular, stands out as one of the world's leading diamond producers, with the diamond mining sector playing a vital role in the country's economic development. The Dubai Diamond Exchange (DDE) provides a platform for diamond trading, auctions, and industry networking, bolstering Dubai's position as a prominent participant in the global diamond trade. The Middle East and Africa region is also an important market for diamond consumption, driven by rising wealth, shifting consumer preferences, and cultural traditions. The UAE, Saudi Arabia, and Qatar all have robust luxury markets, with a strong demand for high-end diamond jewelry, watches, and accessories. In addition to local consumers, the Middle East and Africa region attracts visitors and expats, who drive demand for diamonds as luxury souvenirs and gifts. Consumers, industry stakeholders, and regulatory agencies place an increasing emphasis on ethical sourcing and sustainability in the Middle East and Africa diamond market.

Diamond manufacturers are constantly developing new, inventive, and fashionable items to fulfill their consumers' evolving needs. They invest in R&D to develop more efficient synthetic diamonds suitable for industrial applications. While developing new goods, improving production processes, and navigating regulatory requirements, diamond market manufacturers typically collaborate with diamond miners, producers, regulatory bodies, and other industry stakeholders. Collaborations allow manufacturers to enhance their capacity, combine their knowledge, and develop unique solutions.

To meet expanding market demand for diamonds, manufacturers are working to improve mining and production capacity while minimizing environmental effect. They are committed to supplying the best ethically sourced diamonds to meet the consumer's needs. Diamond manufacturers are generating more fashionable and exquisite items, as well as customisation and personalization options. They are also working with new technology to broaden the scope of the diamond market. The diamond market is expected to grow in the next years for a variety of reasons, including rising demand for trendy items and increased applications of diamonds in the construction, electronics, and automotive industries.

• On November 2023, Tree Line Capital Partners, LLC announced the formation of WD Advanced Materials, LLC ("WDAM" or the "Company") in collaboration with the management team. WDAM is a new organization that has been established following the transition from its predecessor gemstone manufacturing entity, WD Lab Grown Diamonds. It is focused on technical diamond applications. WDAM will use its existing production operations and technological skills to develop revolutionary, next-generation diamond applications for burgeoning scientific and industrial markets.
• On July 2023, Burgundy Diamond Mines Limited has successfully completed the acquisition of Arctic Canadian Diamond Company Limited shares, which included the Ekati Diamond Mine in Canada's Northwest Territories. Burgundy is now in an excellent and exciting position to expand its innovative strategy and explore additional growth potential as a world-class end-to-end diamond firm, thanks to the successful purchase.
• On May 2023, Blackstone Inc., one of the world's leading alternative asset management firms, announced the USD 535 million acquisition of the diamond grading firm 'International Gemological Institute' (IGI). The acquisition is a huge step forward in Blackstone's India development plans.
• In July 2023, Burgundy Diamond Mines Limited, a diamond mining firm, completed the acquisition of Arctic Canadian Diamond Company (ACDC). ACDC owns Ekati mine in the Northwest Territories region of Canada. The move is expected to help Burgundy Diamond Mines in its strategy of vertical integration across the diamond value chain.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Diamond market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Natural
• Synthetic

By Jewellery Application

• Ring
• Necklaces
• Earrings
• Others

By Industrial Application

• Construction and machinery
• Mining Tools
• Electronics
• Automotive
• Others

By Distribution Channel

• B2B
• B2C

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Diamond industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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