Global Diamond Market - Forecasts from 2023 to 2028

The global diamond market is projected to grow at a CAGR of 1.82%, reaching US$111.209 billion in 2028 from US$98.019 billion in 2021. Diamonds are utilized in various products, such as jewelry, cutting tools, and high-tech machinery. The demand for diamond jewelry, notably engagement rings and other gifts for special occasions dominate the diamond market. The availability, production, and price of diamonds are different elements that impact the market. Russia, Botswana, Canada, and Australia are the world's top producers of diamonds, with South Africa, Angola, and Namibia also playing critical roles in the sector. New technologies being developed improve the manufacturing and processing of diamonds, and the global diamond market is highly competitive and continually changing. Other social, political, and economic aspects that affect the market include shifts in consumer behavior, governmental policies, and financial situations.

The global diamond market is driven by rising demand for diamonds and advancements in extracting and processing technology.

• New technologies are being developed to enhance diamond production and processing, dramatically impacting the diamond industry. For instance, innovative processes like chemical vapor deposition (CVD) and high-pressure, high-temperature (HPHT) treatment are being utilized to create lab-grown diamonds, gaining popularity as a more sustainable and cost-effective substitute for natural diamonds. According to the U.S. Geological Survey, the production of synthetic diamond materials in the United States increased by 6% in 2020 compared to the previous year, demonstrating the increasing demand for lab-grown diamonds.
• Consumer demand, which affects diamond pricing, supply, and production, is a critical factor in the growth of the world diamond industry. Many elements, such as cultural customs, vogue trends, and financial conditions, influence consumer desire for diamond jewelry. For instance, diamonds are frequently used in engagement rings and other special occasion gifts since they symbolize love and devotion in many cultures. The demand for diamond jewelry can also be significantly impacted by changes in fashion trends. For instance, there is a rising desire for smaller, more affordable diamonds and lab-grown diamonds due to the appeal of minimalist jewelry and eco-friendly fashion.

High production costs and unpredictable economics hinder the growth of the global diamond market.

Diamond mining and processing are expensive and time-consuming processes, which may drive up the cost and availability of diamonds. Smaller diamond businesses may find it difficult to compete with more prominent, more established players in the market due to the high manufacturing cost. In addition, economic volatility and uncertainty can also impact consumer demand for luxury items like diamond jewelry. Consumers may be less inclined to buy expensive goods like diamond jewelry during economic downturns, which could have a detrimental effect on the sector.

Market Developments

• In February 2023, the Central Government of India allocated a research project to IIT-Madras for the domestic manufacture of lab-grown diamonds (LGD) technology, seeds, and formula. Accordingly, the government announced a five-year research grant for the Indian Institutes of Technology (IITs). The research project also involves propositions and plans to establish an India Centre for Lab-Grown Diamond (InCent-LGD) at IIT Madras, with an estimated cost of US$ 29.3 million over five years.

Asia Pacific accounted for a significant share of the global diamond market in 2021, while the North American diamond market is expected to grow steadily during the forecast period.

Based on geography, the global diamond market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific.

The Asia-Pacific region is a key market for diamond jewelry, with countries such as China and India experiencing strong demand for diamonds. In China, the rising middle class and changing cultural attitudes toward diamonds have led to a growing demand for diamond jewelry, particularly engagement rings. In India, diamonds are a popular choice for special occasion gifts used in traditional jewelry designs.

North America is another significant market for diamond jewelry, particularly in the United States, one of the world's largest markets. The U.S. market is driven by strong consumer demand for diamonds, particularly engagement rings, and other special occasion gifts. In addition, the United States Census Bureau reported that the value of diamond jewelry imports to the United States totaled $19.5 billion in 2019, indicating strong consumer demand for diamond jewelry in North America.

Market Segmentation

By Application

• Jewelry
• Industrial

By Geography

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • United Kingdom
  • Germany
  • France
  • Russia
  • Others
• Middle East and Africa
  • Saudi Arabia
  • Israel
  • South Africa
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Vietnam
  • Others