Diamond Market By Type (Natural Diamonds {Gem-quality diamonds, Industrial Diamonds}, Synthetic Diamonds {High-Pressure High-Temperature (HPHT) Diamonds, Chemical Vapor Deposition (CVD) Diamonds}), By Application (Jewellery {Engagement Rings, Necklaces & Pendants, Earrings, Bracelets, Watches}, Industrial Use {Cutting & Grinding Tools, Optical Applications, Thermal Conductors, Medical Equipment, Electronics}, Investment {Loose Diamonds, Diamond-Backed Securities}, Others), By Carat Weight (Below 0.5 Carats, 0.5 – 1 Carat, 1 – 2 Carats, 2 – 5 Carats, Above 5 Carats), By Shape (Round, Princess, Cushion, Oval, Pear, Others), By Distribution Channel (Online Stores, Jewellery Retailers, Wholesalers, Specialty Diamond Boutiques, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Diamond market accounted for USD 96.23 Billion in 2024 and is expected to reach USD 161.17 Billion by 2035, growing at a CAGR of around 4.8% between 2025 and 2035. The diamond market operates as a worldwide industry dedicated to diamond mining alongside their trading and selling functions. The market progresses through the mining of diamonds, followed by cutting and polishing, before reaching wholesalers and retailers and ending at consumer purchase points. Three main market sectors participate in diamond transactions: luxurious goods retailers, auction houses, and digital platforms. Several elements affecting the diamond market include market supply, consumer wants, geopolitical situations, and economic factors. The diamond market distinguishes between natural diamonds and synthetic diamonds, offering separate pricing benefits to consumers.

Report Scope:

Market Dynamics

Significant cultural value and symbolism of diamonds in weddings.

Diamonds, as enduring symbols of love and strength, are popularly used for wedding ceremonies because people often give them for engagement rings. Together with their scarce nature and resilient quality, diamonds represent the eternal bond of relationships symbolically because love maintains its strength just like diamonds do.

Advertising campaigns led by De Beers during the mid-20th century became responsible for defining the cultural importance of diamonds through their message of “a diamond is forever.” Diamonds have become integral to worldwide customs regarding marriage proposals and weddings because of their status in society.

Three main driving forces behind diamond market growth stem from growing household income alongside conventional romantic customs and promotional activities promoting diamond jewellery as status symbols and romantic expressions. New technologies in diamond extraction, together with synthetic diamond production systems, drive market enlargement. The U.S. Geological Survey reveals that worldwide diamond production demonstrates an upward trend, which corresponds to those market trends.

Technological advancements in diamond cutting and polishing processes.

The diamonds are simply incomparably more perfect than ever before because of the advanced technology used in diamond cutting and polishing and the much greater efficiency and sharper quality enhancement with the deployment of innovations such as laser cutting and automated polishing systems, which allow for designs much smaller than what is possible with human hands and increased yields from rough diamonds.

The cutting efficiency for these tools is further enhanced since they are compatible with state-of-the-art computer-aided design (CAD) software, allowing for improved modeling and visualization of how a diamond should be made. Such new features in modern dichographs are useful in raising the brilliance and symmetry of the finished piece. Such ideologies will liberate economies that can save money and time while spending more time with gems.

Even feature identification, which is a part of color grading and inclusions, has advanced significantly to make the entire process understandable and trustworthy for all parties. These enhancements increase the market's appeal and pave the way for new markets, such as those for custom jewellery and synthetic diamonds. Because of this, innovation, combined with customer preferences and needs regarding cutting-edge technology, guarantees that the average demand for diamonds will always exist, notwithstanding fleeting technological trends. Due to the affordability, accessibility, and consumer demand for luxury goods, all of which are dependent on technological advancements, diamond marketing is expanding rapidly.

Environmental concerns surrounding diamond mining and sustainability issues.

The diamond market is severely constrained by sustainability and environmental concerns over diamond mining processes. In addition to harming nearby forests and depleting water resources, the conventional diamond mining method damages habitats. The carbon emissions that result from mining activities advance global warming effects. The ethical reputation of the market remains under strain owing to human rights violations that commonly occur in mining regions that serve as war zones.

The growing demand for sustainable alternatives has emerged due to these issues, prompting people to choose lab-grown diamonds over natural diamonds, as they provide environmental sustainability and ethical soundness. The diamond mining market faces operational stress to adopt sustainable supply chain methods and improve manufacturing transparency while implementing environmentally friendly manufacturing approaches. People have increasingly become aware and active about the diamond market while demanding stricter regulations, leading to certifications like the Kimberley Process, but additional challenges persist.

Rising popularity of lab-grown diamonds as ethical alternatives.

The ever-increasing acceptance of lab-produced diamonds heralds a development opportunity for the diamond market, especially with growing consumer demand for ethically sourced and sustainable products. In this context, as environmental and societal challenges keep growing regarding diamond mining, lab-grown diamonds come up with an open and green solution to violating human rights and environmental degradation.

With technology improving, lab-grown diamonds are becoming less expensive and unrecognizable from actual diamonds while enticing a wider consumer base. Furthermore, the younger space is creating exciting opportunities for growth since it lights on sustainability. Thus, bringing lab-grown counterparts into the product portfolio will improve the diamond industry's positioning and resonate with consumers. This shift concerns ethics.

It even goes beyond that to provide opportunities for innovative design, marketing, and distribution. Further development is also expected within the sector. More consumer knowledge of lab-grown diamonds creates a competitive advantage for brands that make the shift. As consumers get increasingly trusting of choice, the new lab-grown diamond revolution is ready to create history within the diamond market.

Customization trends creating new market niches and demand.

One of the consumer demand trends affecting various industries, like the diamond business, is customization. Customers are increasingly seeking more personalized, one-of-a-kind, and distinctive diamond jewellery items than they are for regular pieces. This trend gives jewelers the chance to offer personalized settings, unique designs, and custom engraving so that customers can select items that fit their preferences and memorial sites. It is easier for customers to visualize and develop their conception of the personalized piece, further promoted by the rise of online platforms that offer custom design tools.

There is also a growing niche for ethically sourced and sustainably sourced diamonds, which could create varied opportunities. Tapping into these customization trends, the diamond industry would capture a larger and much more varied customer base, becoming associated with all-important younger consumers, who typically value individuality and ethos above everything when considering expenditures.

Industry Experts Opinion

“The diamond market is evolving, with a growing emphasis on ethically sourced and lab-grown diamonds. Consumers are becoming more aware of the environmental and social impact of diamond mining, driving demand for sustainable alternatives. Lab-grown diamonds, which offer the same physical and chemical properties as natural diamonds, are gaining popularity due to their affordability and ethical sourcing. However, natural diamonds continue to hold significant value in luxury markets, particularly for high-end jewelry and investment purposes.”

• Dr. Alan Peterson, Gemologist and Senior Researcher at the International Gemological Institute.

Segment Analysis

Based on the type, the Diamond market is classified into Natural Diamonds and Synthetic Diamonds. In the diamond market, natural diamonds are dominant. Being rare and elegant, along with an august history, natural diamonds have maintained their dominance in the jewellery trade for centuries. Their supposed value is accentuated by the facts of different origins, geological formations, and scarcity, thus attracting the high-end buyer's consideration. Natural diamonds are still the choice for engagement rings and fine jewellery because of their innate emotional and cultural value, which stands in stark contrast to synthetics that offer more affordable options.

Based on the application, the Diamond market is classified into Jewellery, Industrial Use, Investment, and Others. The most prominent segment in the diamond market by application is jewellery. Diamonds have long been synonymous with luxury, status, and beauty, and they are the preferred choice for engagement rings, wedding bands, and fine jewellery. This segment is dominant owing to the emotional and cultural significance attached to diamonds in various celebrations and milestones, such as weddings and anniversaries. Although industrial and investment applications share the market, the global demand for diamond jewellery remains the most considerable and significant application, mainly due to fashion and consumer preferences.

Regional Analysis

The North American diamond market, which is governed by consumer demand and acts as a trading hub, stands as a prominent player in the industry. The largest demand for diamonds comes from the United States, where jewellery sales feed the demand for engagement rings and wedding bands. The area is also witnessing interest in ethically sourced diamonds, namely lab-grown and conflict-free diamonds, as consumers become increasingly aware of sustainability and responsible sourcing. Canada, with its major diamond mines in the Northwest Territories, plays a key supplying role, thereby augmenting stability in the market.

North America's retailers are rapidly embracing e-commerce platforms, improving access to diamonds while also allowing for increased market penetration. The industry is facing challenges with volatile consumer trends along with competition from alternative gemstones, yet it remains buoyant as the economic conditions have been good, and the luxury goods market is enjoying strong growth. The North American diamond landscape is altering customer behavior, shifting, and the demand for transparency is increasing, and technology is thriving.

The Asia-Pacific region is emerging as an increasingly popular and significant driver in the global diamond market with major economies like China, India, and Japan. The country with the largest appeal for diamonds in the region is China, where demand by increasing disposable income has seen a rise in consumption as people create an appetite for luxury goods, particularly among the young affluent population. Like China, India is both a major diamond consumer and the largest diamond processing hub in the world, which affects how the market is viewed.

Traditional jewellery, primarily for weddings and festivals in India, is the primary driver of demand for diamonds. Japan, which is quite refined in taste regarding luxury items, does manage to maintain a stable amount of demand for high-quality diamonds. The most recent trends indicate that there is a higher demand for ethical, naturally mined diamonds rather than lab-grown diamonds in the region. Economic fluctuations and changing preferences are some of the challenges. The Asia-Pacific market still manages to grow very dynamically with the new expanding middle classes and the evolving luxury market.

Competitive Landscape

The diamond market faces stiff competition from De Beers Group, ALROSA, Rio Tinto, and powerful retailers like Tiffany & Co. (LVMH) and Signet Jewelers. ALROSA preserves its position as a main diamond producer, especially throughout Russian territories, and simultaneously, De Beers maintains its power through dominance of raw diamond distribution channels. The market demonstrates a new growth trajectory with increasing man-made diamond acceptance since Blue Nile and Graff Diamonds diversified their lines. Tiffany & Co. focuses on sustainability with ethical supply chains. ALROSA has been constrained by geopolitical issues.

Blue Nile's unrivaled competition and other online diamond retailers have simultaneously transformed the diamond purchasing experience by exhibiting innovative digital shopping practices. Reforms in the business environment increase market competitiveness through the transition of traditional businesses into new market patterns. The diamond market increasingly faces pressure from consumers for stone tracking, which fashions modern business practice in that sector. The shifts in consumer preference for lab-grown diamonds have made consumers primarily choose alternatives to diamonds that meet their ethical and eco-friendly considerations.

Diamond Market, Company Shares Analysis, 2024

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Recent Developments:

• In March 2025, De Beers addressed the rise of lab-grown diamonds, which had impacted its profits and affected African politics. To respond, the company introduced DiamondProof, a device that could distinguish between natural and synthetic diamonds. This tool aimed to help retailers assure customers of authentic purchases. The move was part of De Beers' effort to maintain consumer trust.
• In March 2025, the US introduced reciprocal tariffs, causing concerns in the diamond industry. This move particularly affected markets like Surat, India. The tariffs led to challenges for diamond traders and businesses. The industry faced significant disruptions as a result of these changes.

Report Coverage:

By Type

• Natural Diamonds
  • Gem-quality diamonds
  • Industrial Diamonds
• Synthetic Diamonds
  • High-Pressure High-Temperature (HPHT) Diamonds
  • Chemical Vapor Deposition (CVD) Diamonds

By Application

• Jewellery
  • Engagement Rings
  • Necklaces & Pendants
  • Earrings
  • Bracelets
  • Watches
• Industrial Use
  • Cutting & Grinding Tools
  • Optical Applications
  • Thermal Conductors
  • Medical Equipment
  • Electronics
• Investment
  • Loose Diamonds
  • Diamond-Backed Securities
• Others

By Carat Weight

• Below 0.5 Carats
• 0.5 – 1 Carat
• 1 – 2 Carats
• 2 – 5 Carats
• Above 5 Carats

By Shape

• Round
• Princess
• Cushion
• Oval
• Pear
• Others

By Distribution Channel

• Online Stores
• Jewellery Retailers
• Wholesalers
• Specialty Diamond Boutiques
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• De Beers Group
• ALROSA
• Rio Tinto Group
• Antwerp World Diamond Centre
• LVMH
• Sotheby’s International
• Christie’s International
• Gemological Institute of America
• Luk Fook Jewellery
• Graff Diamonds
• Bain Capital
• Swatch Group
• Chow Tai Fook
• Moussaieff Jewellers
• Signet Jewelers Limited

Frequently Asked Questions (FAQs)