Diamond Market Outlook, 2029

The diamond industry has long captivated the human imagination with its sparkle and allure. Beyond their intrinsic beauty, diamonds hold significant economic, cultural, and historical value. From the dazzling engagement rings to the glittering red carpets of Hollywood, diamonds are an integral part of our society. Diamonds, the hardest known natural material, are formed deep within the Earth's mantle under intense heat and pressure. Over the course of millions of years, carbon atoms arrange themselves into the crystal lattice structure that gives diamonds their unique properties. Most diamonds are found in kimberlite pipes or alluvial deposits.

Mining, the initial step in the diamond supply chain, can take various forms, including open-pit mining and underground mining. Countries like Russia, Botswana, Canada, and Australia are major players in diamond production. Mining, however, raises environmental concerns, including habitat disruption, deforestation, and soil erosion. Diamonds have held a special place in human culture for centuries. They symbolize love, commitment, and status. The tradition of giving a diamond engagement ring dates back to the 15th century, and it was popularized in the 20th century by De Beers' iconic marketing campaign, which coined the famous slogan, "A Diamond is Forever." Diamonds are also associated with luxury, prestige, and endurance, making them prized possessions in jewelry and heirlooms. The diamond industry contributes significantly to the global economy. Beyond the mining sector, diamonds generate revenue through cutting, polishing, jewelry manufacturing, and retail sales. Countries like Botswana have benefited from responsible diamond mining, using the revenue to invest in education, healthcare, and infrastructure. Ethical considerations within the diamond industry have gained prominence, particularly with the emergence of conflict diamonds, also known as "blood diamonds." These diamonds are sourced from war zones and used to finance armed conflict against governments. The Kimberley Process Certification Scheme, established in 2003, aims to prevent the trade of conflict diamonds by requiring certification for all rough diamond shipments. Some mining companies are adopting more sustainable practices, including land rehabilitation and conservation efforts. Additionally, the growth of lab-grown diamonds provides a more environmentally friendly alternative, as it reduces the need for traditional mining.

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. The diamond market is projected to grow for several compelling reasons rooted in economic, cultural, and market dynamics. One significant driver is the increasing global wealth and corresponding rise in consumer spending. As economies expand and incomes rise, individuals often allocate more resources to luxury goods, and diamonds, with their enduring allure, are a prime choice for those seeking symbols of affluence.

Additionally, the cultural significance of diamonds, particularly in the context of engagements and weddings, plays a pivotal role. The tradition of presenting a diamond engagement ring, bolstered by successful marketing campaigns emphasizing everlasting love, has embedded diamonds as essential components of significant life events. Emerging economies, such as India and China, contribute substantially to market growth as their burgeoning middle class becomes more interested in luxury goods. Innovations in marketing and retail strategies, coupled with the ease of access through e-commerce, have expanded the global market for diamonds. Moreover, the industry has responded to changing consumer preferences by embracing ethical and sustainable practices, addressing concerns related to the sourcing of diamonds. This shift towards responsible practices aligns with the growing consciousness of consumers who prioritize transparency and ethical considerations. The rise of lab-grown diamonds as a sustainable alternative to mined diamonds has also influenced the market, providing consumers with a more environmentally friendly and cost-effective option.

Market Drivers

• Rising Affluence and Consumer Aspirations: One of the primary drivers for the global diamond market is the increasing affluence and rising aspirations of consumers worldwide. As economies grow and the global middle class expands, more individuals have the financial capacity to indulge in luxury goods, including diamonds. The desire for symbols of status, prestige, and love, often associated with diamond jewelry, fuels demand. Emerging markets, particularly in Asia, contribute significantly to this trend, as a growing number of consumers seek to embrace the cultural and social significance attached to diamonds.
• Innovations in Marketing and Retail Strategies: The diamond industry's ability to innovate in marketing and retail strategies serves as another major driver. Companies continually find new and creative ways to promote diamonds, emphasizing their rarity, timelessness, and emotional significance. Online platforms and digital marketing have played a pivotal role in reaching a global audience, making diamonds more accessible to consumers. Collaborations with influencers, celebrities, and partnerships with jewelry designers also contribute to enhancing the desirability and market reach of diamonds.

Market Challenges

• Ethical and Environmental Concerns: Ethical and environmental considerations pose significant challenges for the diamond industry. The issue of conflict diamonds, sourced from war zones and used to finance armed conflicts, has led to calls for greater transparency and ethical sourcing. Additionally, the environmental impact of diamond mining, including habitat disruption, deforestation, and soil erosion, raises concerns. The industry must address these challenges by adopting and promoting responsible and sustainable practices throughout the entire supply chain.
• Competition from Lab-Grown Diamonds: The growing popularity and acceptance of lab-grown diamonds present a formidable challenge to the traditional mined diamond market. Lab-grown diamonds, created through technological processes, offer a more sustainable and often cost-effective alternative. As consumers become more environmentally conscious and seek ethically sourced options, the diamond industry faces the challenge of adapting to this shift in preferences. Differentiating the natural and lab-grown diamond markets and maintaining consumer trust in the authenticity of mined diamonds become crucial challenges for the industry.

Market Trends

• Rise of Sustainable and Ethical Practices: A prominent trend in the diamond market is the increasing focus on sustainability and ethical practices. Consumers are demanding transparency in the supply chain, and the industry is responding by adopting responsible mining practices, supporting community development, and ensuring ethical sourcing. Certification programs like the Kimberley Process aim to address concerns related to conflict diamonds, and companies are incorporating sustainable initiatives to meet the growing demand for ethically produced diamonds.
• Growing Popularity of Customization and Personalization: Another trend shaping the diamond market is the growing popularity of customization and personalization. Consumers are seeking unique and bespoke pieces that reflect their individuality. Jewelers are responding by offering customizable options, allowing customers to choose specific diamond cuts, settings, and designs for their jewelry. This trend aligns with the desire for a more personal and meaningful connection to the diamonds they purchase, adding an element of exclusivity to the market.

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.

The natural segment, as per the product type, dominated the diamond market in 2023 and is anticipated to maintain its dominance throughout the Diamond Market Forecast period.

Natural diamonds are formed deep within the Earth's mantle over millions of years, making them inherently rare and unique. The geological processes required to create natural diamonds result in a diverse range of colors, clarities, and carat weights. The rarity and individuality of natural diamonds contribute to their appeal as precious and timeless gemstones. Natural diamonds have been deeply ingrained in cultural traditions and customs, especially in the context of engagements and weddings. The tradition of proposing with a natural diamond engagement ring, popularized in the 20th century by marketing campaigns like De Beers' "A Diamond is Forever," has become a cultural norm in many societies.

The emotional and symbolic value attached to natural diamonds as expressions of love and commitment strengthens their position in the market. Natural diamonds are often associated with luxury, prestige, and status. The long-standing perception that natural diamonds are rare and valuable contributes to their appeal as status symbols. Many consumers view natural diamonds as an investment and a tangible representation of wealth and sophistication, reinforcing their position at the forefront of the industry. The historical significance of natural diamonds, coupled with their timeless appeal, adds to their allure. Famous diamonds with storied histories, such as the Hope Diamond or the Koh-i-Noor, contribute to the fascination and desirability of natural diamonds. The idea that natural diamonds have adorned royalty and the elite throughout history adds a layer of mystique and legacy to these gemstones. Despite the rise of lab-grown diamonds as an alternative, many consumers still prefer natural diamonds due to the perceived authenticity and natural origin. Consumer trust in the authenticity of natural diamonds, often associated with geological processes and natural formations, remains a significant factor in their continued dominance in the market.

The jewelry segment dominated the diamond market in 2022. The symbolic significance of jewelry in some cultures generates high demand for diamonds.

Diamonds are used in jewelry due to their shiny lustrous property and durability. They are more in demand for traditional and bridal wear. Moreover, the rise in disposable income, the increase in Gen Z and Millennial population, along with growing consumer preference for investing in meaningful products have increased the sales of diamond jewelry. In addition, there is also an inclination of fashion trends toward the acquisition of delicate diamond pieces. The uniqueness and confidence provided by having customized diamond jewelry are also driving the market significantly.

The diamond industry is expected to be led by the jewelry segment in the coming years owing to the increasing purchase power of the middle-income groups along with the already existing popularity of diamond-based jewelry in the luxury-buyer segment. In June 2023, Aditya Birla, an Indian conglomerate, announced entry into the jewelry segment with an initial investment of USD 50 billion. The new venture is called Novel Jewels. Such announcements indicate the growing market for diamonds in developing economies such as India. The growth of the jewelry segment is associated with the increase in disposable income. Multiple brands in the market are offering different gem-grade diamonds for various occasions including weddings and Valentine’s Day. These grades come with different price ranges from lower to higher, therefore attracting consumers to buy them. Additionally, the number of fashion influencers has increased in the past few years. This has resulted in the young generation investing in branded jewelry.

On the other hand, the demand for the industrial segment can be attributed to the increase in industrialization. Developing countries such as India, China, Brazil, and Argentina have the highest growth rate of industrialization. The demand for rough stone has increased in these countries as mining and drilling activity has increased recently. Additionally, growing investments by companies in R&D and technological advancements worldwide will further influence market growth. Thus, all these factors are expected to grow the market. In this segment, lab-grown products or synthetic ones have considerably higher penetration.

Industrial diamond is mainly used as an abrasive, hence its demand from sectors such as construction, metal machining, and exploration drilling has been increasing continuously since the past few decades. In construction, it is particularly used in applications such as wire sawing, hand sawing and core drilling. The rapid expansion of construction activities in developing countries is predicted to benefit the segment’s growth. The building & construction industry is expected to witness substantial growth by 2029. China, the U.S, and India are the major economies driving the construction industry across the globe.

The B2B segment is involved in the sale of diamonds to other businesses, such as jewelry manufacturers and wholesalers, while the B2C segment deals with the final sale of diamonds in the form of jewelry, loose diamonds for industrial purposes, or in dust form.

The constant demand for diamonds in the jewelry and industrial sectors are resulting in significant growth in the overall diamond market. The growing presence of the new generation on online platforms with high purchasing power, which has influenced the growth of the B2B segment. The availability of online B2B marketplaces, such as Polygon.net and UNI Diamonds, which offer significant growth opportunities for diamond professionals. Moreover, the B2B segment offers a secure environment with maximum growth opportunities, leveraging trade logistics cost. The diamond market is highly competitive, and companies compete with one another based on resources and technical capacity.

The diamond industry is highly specialized, with various stages involved in the processing of rough diamonds, including cutting, polishing, and grading. B2B transactions are well-suited to accommodate these specialized processes and the expertise required at each stage. Businesses within the diamond supply chain often engage in specific roles, such as diamond mining companies, cutting and polishing firms, and wholesalers, making B2B interactions more streamlined. The diamond supply chain is intricate, involving multiple stakeholders, from diamond miners to manufacturers to retailers. B2B transactions facilitate the smooth flow of diamonds through this complex supply chain. Manufacturers purchase rough diamonds from miners, process them, and then sell the polished diamonds to wholesalers or retailers. The B2B model allows for efficient coordination and collaboration among these various entities. B2B transactions in the diamond industry often involve customization and specialization. Manufacturers may tailor their cutting and polishing processes to meet the specific needs of their clients, who, in turn, may have unique requirements for the diamonds they purchase. B2B relationships allow for a higher degree of customization and specialization compared to direct-to-consumer transactions. Many transactions in the diamond industry involve significant volumes and values. B2B relationships are better equipped to handle large-scale transactions, whether it's the purchase of rough diamonds by manufacturers or the supply of polished diamonds to retailers. The volume-driven nature of the diamond trade often aligns well with B2B dynamics.

North America is dominating the market with the largest share in 2023. North America is one of the most developed regions having high purchasing power along with a growing population of millennial and Gen Z.

The expansion of the diamond market has resulted in huge revenue generation by this region. Being a developed nation, there is high demand for diamonds in the jewelry and industrial sectors. Here, synthetic diamonds are highly demanded in construction, mining services, machinery production along with beauty and personal care industry. Moreover, the excessive presence of manufacturers in this region has increased the revenue of the diamond market. Moreover, the inclination of Western culture towards diamond jewelry for special occasions and events has presented a growth opportunity for the market.

The US and Canada regions are projected to become the most significant contributors due to the use of diamonds in the growing industrial application segment. Mining activities, construction services, and machinery manufacturing are the major users of lab-based or synthetic diamonds. Stone cutting and highways contributed significant revenue in the last few years. Additionally, the regional jewelry segment further takes the North American market forward. Additionally, the number of influencers is high in the region which influences young consumers to buy jewelry. Machinery manufacturing, construction, and mining services are among the major industries that use synthetic diamonds in industrial applications. Buildings, highways, stone cutting, and repair applications accounted for most synthetic diamond consumption in the industrial sector. In addition, precision machining of ceramic parts for aerospace, laser radiation equipment, and circuit heat sinks are expected to drive demand for synthetic diamonds and related products in industrial applications.

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 Research Report 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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