Global Diamond Market Outlook to 2029

Global Diamond Market Overview

• The Global Diamond Market was valued at USD 101 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer demand for luxury goods, particularly in emerging markets, alongside a resurgence in the bridal jewelry segment. The market has also seen a rise in synthetic diamonds, which are gaining acceptance among consumers for their ethical and environmental benefits.
• Key players in this market include countries like India, Belgium, and the United States. India dominates due to its extensive diamond cutting and polishing industry, while Belgium is known for its trading and distribution networks. The United States remains a significant market due to high consumer spending on luxury items, particularly in the jewelry sector.
• In 2024–2025, the U.S. implemented regulations requiring diamond importers to certify their diamonds are conflict-free and disclose the country of origin. This initiative enhances transparency and sustainability in the diamond supply chain, specifically targeting the exclusion of Russian diamonds to uphold ethical sourcing standards.

Global Diamond Market Segmentation

By Source: The diamond market is primarily segmented into natural and synthetic diamonds. Natural diamonds continue to dominate the market due to their traditional appeal and perceived value. However, synthetic diamonds are gaining traction, particularly among younger consumers who prioritize ethical sourcing and affordability. The increasing acceptance of lab-grown diamonds is reshaping consumer preferences, leading to a gradual shift in market dynamics.

By Application: The diamond market is segmented into jewelry, industrial, and other applications. The jewelry segment holds the largest share, driven by consumer demand for engagement rings and luxury items. The industrial segment, while smaller, is significant due to the use of diamonds in cutting, grinding, and drilling applications. The growing trend of personalized jewelry is also contributing to the expansion of the jewelry segment.

Global Diamond Market Competitive Landscape

The Global Diamond Market is characterized by a mix of established players and emerging companies. Major companies such as De Beers, Alrosa, and Rio Tinto dominate the market, leveraging their extensive mining operations and brand recognition. The competitive dynamics are influenced by factors such as ethical sourcing, technological advancements in diamond production, and changing consumer preferences towards synthetic diamonds.

Global Diamond Market Industry Analysis

Growth Drivers

• Increasing Demand for Luxury Goods: The luxury goods market is driven by a growing affluent population and rising demand in Asia-Pacific, where luxury spending continues to outpace other regions. Consumers increasingly seek high-value items like diamonds for personal use and gifting, supported by a shift toward digital engagement and personalized shopping experiences. Luxury brands are also leveraging AI and live-shopping to enhance customer interaction, while sustainability and exclusivity remain key factors influencing purchasing decisions.
• Rising Disposable Incomes in Emerging Markets: Emerging markets, especially in Asia and Africa, are experiencing rapid economic growth with a swelling middle class. By 2025, the consuming class is expected to reach 4.2 billion people, with rising disposable incomes and urbanization driving increased demand for luxury goods like diamonds. In India, the middle-class population is projected to approach 600 million, fueling market expansion as more consumers gain purchasing power and seek high-end products.
• Growth of E-commerce Platforms for Jewelry Sales: The online jewelry market is expanding rapidly, with a 13.8% annual growth rate and expected to nearly triple in value by 2032. In 2023, online sales accounted for about 25-33% of total jewelry sales, driven by consumer preference for convenience, wider selections, and competitive pricing. Innovations like augmented reality (AR) virtual try-ons and influencer marketing are enhancing customer engagement, further accelerating digital jewelry sales and boosting overall diamond market growth.

Market Challenges

• Fluctuating Raw Material Prices: The diamond industry faces significant challenges due to volatile raw material prices, which can impact profit margins. Factors such as supply chain disruptions and geopolitical tensions contribute to this unpredictability. This volatility can deter investment in diamond mining and production, leading to potential shortages and increased costs for consumers, ultimately affecting market stability and growth.
• Environmental Concerns and Ethical Sourcing: The diamond industry is under growing scrutiny for its environmental impact and ethical sourcing practices. Rising consumer awareness has fueled demand for responsibly sourced and lab-grown diamonds, posing a challenge to traditional producers. Companies must adapt to these evolving preferences to sustain market relevance and comply with emerging sustainability regulations.

Global Diamond Market Future Outlook

The diamond market is poised for transformative growth, driven by evolving consumer preferences towards sustainability and ethical sourcing. As lab-grown diamonds gain acceptance, traditional diamond producers are likely to innovate and adapt their offerings. Additionally, the rise of digital retailing will enhance accessibility, allowing consumers to explore diverse options. With increasing disposable incomes in emerging markets, the demand for luxury diamonds is expected to remain robust, creating a dynamic landscape for industry players in the coming years.

Market Opportunities

• Expansion into Untapped Markets: There is significant potential for diamond retailers to expand into untapped markets, particularly in Southeast Asia and Africa. With a growing middle class and increasing disposable incomes, these regions present lucrative opportunities for diamond sales. Companies that strategically enter these markets can capitalize on rising demand for luxury goods, enhancing their market share and profitability.
• Innovations in Diamond Synthesis Technology: Advances in diamond synthesis technology are creating new opportunities for the market. Lab-grown diamonds are becoming more affordable and widely accepted, with production costs decreasing by 20% in recent years. This trend allows companies to offer competitive pricing while meeting consumer demand for ethical products, positioning them favorably in a rapidly evolving market landscape.