Diamonds have captivated hearts for centuries, symbolizing love, luxury, and enduring value. But beneath the sparkle lies a complex and fascinating market. Let’s explore the current landscape of the diamond industry, delving into its size, trends, and future prospects.
The global diamond market size was assessed at USD 90.92 billion in 2022 and is projected to grow from USD 94.19 billion in 2023 to reach USD 127.84 billion by 2030 recording a moderate CAGR of 4.5% during the forecast period. The usage of the product in construction industry due its remarkable properties such as the highest sound velocity, optical dispersion, and low thermal expansion coefficient for hand sawing, wire sawing, and core drilling is driving market augmentation. This information is provided by Fortune Business Insights, in its report titled, “Diamond Market Size Report, 2024-2030.”
Segmentation:
Synthetic Segment to Lead Backed by its Easy Availability and Cost Effectiveness
According to type, the global market is bifurcated into natural and synthetic. Among these, the synthetic segment held the largest market share due to the growth of the construction industry as they are used in manufacturing drilling and cutting equipment. The production and maintenance costs of synthetic diamonds are low as compared to natural ones which increase their popularity and aid segment augmentation.
Rough Segment to Hold Largest Share Due to Rising Usage in Making Cutting Tools and Drilling Equipment
Speaking of products, the market is divided into rough and polished. Among these, the rough segment dominated the market owing to the rising usage of rough diamonds for cutting and manufacturing optical lenses. The low cost of the rough diamond as compared to polished ones increases their application in cutting tools and drilling equipment which will further elevate segment proliferation.
Jewellery Segment to Dominate Stoked by Rising Number of Fashion Influencers
Moving on to application, the market is segmented into jewellery and industrial. The rising number of fashion influencers has boosted the demand for branded jewellery from youngsters thus driving segment growth in the upcoming years. The growth of the jewellery segment is credited to the rise in disposable income.
Geographically, the market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Drivers and Restraints:
Surging Product Demand from Jewellery Industry to Elevate Market Augmentation
The favourable properties of diamond such as its high thermal conductivity, optical dispersion, sound velocity, and hardness have made it the ideal choice for polishing and cutting. It is the hardest allotrope of carbon and the rising trend of westernised weddings has increased the usage of diamonds in jewellery. They are also used in construction sector for core drilling, wire sawing, and hand sawing which will also aid diamond market growth. Furthermore, the growing usage of lab-grown diamonds in the jewellery sector is contributing to market augmentation.
Contrastingly, the high cost of mining and polishing diamonds affects the price of the final product and makes it unaffordable for middle class people thus inhibiting market augmentation.
Regional Insights:
North America to Dominate Due to Presence of Many Influencers
North America accounted for the largest diamond market share in 2022 owing to the presence of a high number of influencers in the region who influence young people to purchase jewellery. The rising use of product in making wedding jewellery and high disposable income of populace will also drive market proliferation. Moreover, U.S. records more than half of the global demand for diamonds thus propelling market expansion.
Asia Pacific market is anticipated to display significant expansion due to the rising popularity of western weddings in China, Japan, and Indonesia. The high population of India and China is also contributing to market proliferation in this region.
Europe market is projected to expand rapidly in the forthcoming years stoked by presence of leading companies, consumer preference for expensive jewellery, and high per capita income.
Source- https://www.fortunebusinessinsights.com/diamond-market-102887
Competitive Landscape:
Mergers and Acquisitions to Industry Leaders to Elevate Market Augmentation
Tactical decisions undertaken by leading companies to garner larger profits and boost revenue generation include product launches, partnerships, collaborations, and mergers and acquisitions. For example, in March 2023, Rio Tinto announced its decision to acquire the approximately 49% of the issued and outstanding shares of Turquoise Hill Board that Rio Tinto does not currently own Under the agreement Turquoise Hill minority shareholders would receive USD 25.04 PER share. This proposal would value the Turquoise Hill minority share capital at approximately USD 2.7 billion.
Key Industry Development:
May 2023: WD Lab Grown Diamonds recently announced M. Geller Ltd., a diamond wholesaler, as its first authorized distribution partner for Chicago. WD grows its diamonds using the chemical vapor deposition (CVD) process at its factory in Washington, D.C. According to this contract, WD will provide M. Geller’s customer base with a consistent supply of loose generic and branded diamonds.
List of Key Players Mentioned in the Report:
- KGK Group (China)
- De Beers (Canada)
- Rio Tinto (U.K.)
- Arctic Canadian Diamond Company Ltd. (Canada)
- Petra Diamonds (South Africa)
- Alrosa (Canada)
- Argyle (Switzerland)
- WD Lab Grown Diamonds (U.S.)
- Gem Diamonds (U.K.)
- Sagar Diamonds (India)
This growth is fueled by several factors:
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Rising disposable income: Particularly in emerging economies like China and India, a growing middle class with increased spending power is fueling demand for luxury goods, including diamonds.
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Enduring cultural significance: Diamonds continue to hold significant cultural importance in many countries, particularly as a symbol of love and commitment in engagement rings and wedding jewelry.
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Marketing and branding: De Beers’ long-standing “A Diamond is Forever” campaign, along with continued marketing efforts by industry giants, have cemented the association of diamonds with luxury and desirability.
Trends Shaping the Industry:
The diamond market is constantly evolving, with several key trends shaping its future:
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Shifting consumer preferences: Millennials and Gen Z are emerging as major diamond consumers. These generations value ethical sourcing and sustainability, prompting a rise in demand for lab-grown diamonds and ethically sourced mined diamonds.
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E-commerce boom: Online diamond sales are on the rise, offering consumers greater convenience, price transparency, and access to a wider range of diamond options.
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Lab-grown diamonds: Lab-grown diamonds have emerged as a viable alternative to mined diamonds. They boast similar physical and chemical properties at a potentially lower price point, appealing to environmentally conscious consumers.
The Future of Diamonds:
Despite facing challenges, the diamond market is expected to maintain its position as a luxury good. Here’s what we can expect in the coming years:
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Increased competition: Lab-grown diamonds will likely continue to gain market share, putting pressure on traditional mined diamond prices.
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Focus on ethical sourcing: Consumers will become more discerning, demanding transparency and ethical practices throughout the diamond supply chain.
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Innovation and personalization: The industry will likely see advancements in diamond cutting techniques, creating unique and desirable diamond cuts. Additionally, personalization through inscriptions or bespoke designs might become more prevalent.
Diamonds are likely to retain their allure for years to come. However, the industry must adapt to changing consumer preferences and technological advancements to ensure a sustainable and glittering future.