Diamond Industry Forecast for 2024 and Beyond

The global diamond market fluctuates like virtually every other market in the world. However, this particular market is more subtle and subject to shifts in trends that aren’t always immediately apparent. That’s why businesses must pay attention to current market prices and possible future trends.  

What does this mean for 2024 and beyond? We’re going to explore the likely answer to this question throughout this article.

The industry’s expected Compound Annual Growth Rate of 4.4% over the next seven years is already playing out in real-time. From rough diamonds, polished diamonds, sustainability, and diamond manufacturing trends, here’s a look at our diamond industry forecast for 2024 and beyond.

Rough Diamonds Market News

In the next five years, the rough diamonds market is poised for a significant surge, driven by increasing demand for both uncut and polished diamonds. This growth is attributed to factors such as consumer interest in bespoke jewelry items featuring uncut diamonds and the rise in diamond production by smaller companies. 

However, this growth is accompanied by challenges, including price volatility and major industry agreements, like the one between diamond giant De Beers and Botswana. This agreement reflects the intricate balance of power and negotiation in the diamond industry. 

With Botswana set to increase its diamond production share and extend the operational life of its Jwaneng diamond mine, implications for diamond companies and auction houses are vast. Adapting to these shifts will be essential for businesses to thrive as the industry evolves.

Polished Diamonds Market News

The global polished diamonds market has also seen significant changes lately, with various factors influencing diamond manufacturing and design firms’ long-term strategies. 

India has sustained its reputation in the global jewelry domain, with its jewelry exports rising by 2.48% in Fiscal Year 2022-2023, primarily driven by gold products. However, inconsistent supplies of rough diamonds and preferences of countries like Namibia, Botswana, and Angola to have their diamonds processed locally has impacted India’s diamond market. 

On the other hand, China’s polished diamond prices have remained resilient. Factors such as a robust domestic consumer base have ensured stability in the Chinese market. 

As environmental concerns mount, leading mining companies like De Beers are pivoting towards more sustainable operations, targeting carbon neutrality and implementing eco friendly diamond practices. This is setting the stage for the coming years and the new standards to which diamond manufacturers will be held.

We will explore the topic of sustainability in the diamond industry in a moment as this is not only an area of great importance, but also an exciting time for the industry as a whole.

Amid these shifts, staying updated with market trends is paramount for businesses in the diamond industry, a mission the Chroron Group is committed to fulfilling.

Fancy Colored Diamonds Market News

Following rising prices in the fancy colored diamonds market in Q1 and Q2 2023, this is still an incredibly active area in the industry and likely will be in the coming years. 

Figures from the Fancy Color Research Foundation (FCRF) in particular show the average prices of the three most popular color varieties – blue, pink, and yellow – have risen by 3.9%. More so than the average polished diamond, fancy diamonds are considered a ‘luxury’ item and therefore generally not as predisposed to market shifts.

With that in mind, fancy colored diamonds will likely continue to be an attractive sector for investors and collectors alike. 

Sustainability and Responsibility In the Natural Diamonds Market

The environmental impact of diamond mining has been at the forefront of industry decision-makers’ minds for years. Now, the global diamond industry is facing heightened scrutiny regarding its environmental practices, with a particular focus on sustainability.

Traditional diamond mining has been challenged by its environmental footprint, especially concerning conventional extraction methods, remote mining locations, and financial constraints in adopting eco-friendly technologies. 

However, leading diamond firms have made commendable strides towards more sustainable operations. 

These initiatives include commitments to achieving net-zero emissions, with giants like De Beers targeting this by 2030. 

Companies are also emphasizing: 

• Waste management
• Supply-chain transparency
• Sourcing from reclaimed diamonds
• Adopting sustainable packaging

Collaborative efforts like the Kimberley Process further validate the industry’s shift towards ethical practices. 

Sustainability is a significant component of the mission at Choron Group and it’s taken into account for every decision we make. Learn more about our approach.

Diamond Manufacturing Tech Trends

Plans to expand business ventures only continue to push demand for diamonds. The jewelry industry, in particular, has recently made significant investments in the diamond market with new technologies such as AI and blockchain paving the way for greater transparency and traceability throughout the supply chain.

Even in the diamond mining industry, technology has only created more job opportunities for diamond miners, who are now challenged to adopt new skills and training to keep up with the changing landscape.

As investments in new ventures over the past few years begin to get off the ground, they will revolutionize the industry. This means increased demand for diamonds, opportunities for miners, and ultimately, a brighter future for the diamond industry.

Interestingly, diamond grading reports are also going digital. When it comes to renowned reports from the GIA: by the year 2025, they will all be completely digitized. 

Diamond Prices, Growth, & Demand Forecast

Now, let’s turn our attention to a summary of the impact these trends and insights will have on the three factors shaping the diamond industry as we know it: price, growth, and demand.

Prices

The pricing landscape for diamonds is evolving. Intensified demand and supply constraints in certain segments could push prices upwards. Innovations, sustainability initiatives, and shifting consumer preferences also can influence diamond valuations.

Growth

The growth of the diamond industry is evident, with projections indicating an increase from 94.96 billion USD in 2021 to $139.91 billion by 2030. This substantial growth showcases the industry’s resilience and adaptive nature, even in the face of global challenges.

Demand

The demand trajectory for diamonds is on an uptrend. A growing affinity for bespoke jewelry, technological advancements in diamond authentication, and sustainability initiatives significantly influence consumer buying patterns. The rise of the middle class in emerging economies (including India) is bolstering the global demand for diamonds, indicating a flourishing market in the years to come.

Stay Sharp with Diamond Industry News from Choron Group

Diamond industry news changes day to day, and likewise, so do the plans brands and buyers have when it comes to sourcing diamonds. Staying ahead of the industry’s ever-evolving demands requires timely information and a deep commitment to ethical, sustainable, and community-centered practices. 

The Choron Group stands as a paragon in this regard, with a corporate social responsibility ethos guided by the ISO 26000:2010 standard, ensuring socially responsible behavior across all facets of our operations.

Central to our ethos is a profound respect for human rights. We take meticulous measures to safeguard civil, political, economic, social, and cultural rights, ensuring our labor practices are nothing short of exemplary.

Choron Group’s commitment to ethical practices is steadfast, advocating for anti-corruption, fair competition, and value-chain social responsibility. We view the community not as separate but as part of our extended family, investing in areas like education, culture, and health. 

On the environmental front, we prioritize sustainability, aligning with the UN Sustainable Development Goals. This involves reducing carbon emissions, embracing clean energy, and endorsing responsible consumption. Our every action, from waste management to championing renewables, is grounded in deep environmental respect.

As we look to the future, our focus remains on leaving a responsible and sustainable legacy in the diamond industry and the wider world.