Diamond Market Size, Explosive Growth, and Regional Demand Forecast 2032

The global diamond market was valued at USD 97.57 billion in 2024 and is expected to grow from USD 94.19 billion in 2023 to USD 138.66 billion by 2032, reflecting a moderate CAGR of 4.5% during the forecast period. Throughout history, diamonds have been emblematic of wealth, power, and love. The diamond market, driven by both consumer demand for luxury and industrial applications, remains a complex industry. Despite challenges such as the rise of synthetic diamonds and ethical concerns, the market continues to evolve in response to shifting trends and consumer preferences. This article explores the current state of the diamond market, analyzing key trends, challenges, and future outlook.

Diamonds are among the hardest natural materials and are well-known for their use in jewelry. The market’s growth is largely attributed to increasing demand for diamond jewelry and its applications in industries requiring durable materials. Additionally, diamonds are used in research to study their unique properties. This information comes from a report by Fortune Business Insights, titled "Diamond Market, 2024-2032."

The global diamond market is generally categorized into two key segments: natural diamonds and synthetic diamonds. Natural diamonds are formed over billions of years under extreme pressure and temperatures deep within the Earth. Major mining regions include Russia, Canada, Botswana, and South Africa. Synthetic diamonds, produced using advanced technology in controlled environments, offer a more cost-effective and ethical alternative to natural 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)

Key Market Segments: Natural vs. Synthetic Diamonds

The global diamond market is traditionally divided into two segments: natural diamonds and synthetic diamonds.

• Natural Diamonds: Formed over billions of years under extreme pressure and heat deep within the Earth, natural diamonds have been the cornerstone of the industry. Major diamond-producing countries include Russia, Canada, Botswana, and South Africa. These regions are known for their abundant diamond mines, and the natural diamond segment has long been a symbol of rarity and prestige.

• Synthetic Diamonds: In recent years, the rise of synthetic or lab-grown diamonds has introduced a new dimension to the market. These diamonds are created using advanced technologies such as High-Pressure High-Temperature (HPHT) or Chemical Vapor Deposition (CVD), offering a more affordable and ethical alternative to natural diamonds. Lab-grown diamonds are nearly identical to their natural counterparts in terms of physical and chemical properties, making them a viable option for budget-conscious or ethically-minded consumers.

Report Coverage:

The report provides crucial insights into growth trends impacting market dynamics and valuation. Moreover, the market is studied systematically by dividing it into regions and segments. Market share held, growth rate, and valuation of each segment and region is given in the document. Key players in the global market are also listed along with latest developments such as partners, collaborations, and mergers and acquisitions.

Drivers and Restraints:

Changing Consumer Preferences and Rising Demand for Innovative Jewellery Designs to Drive Market Growth

The demand for colourful and innovative jewellery has risen significantly as consumer preferences have changed. This has created several opportunities for manufacturers of synthetic diamonds and resellers to establish their presence in the global market. The growth of online platforms has also facilitated diamond market growth as the demand for jewellery products increased owing to the consumer preference to buy online.

On the other hand, the high cost of mining diamonds due to low production, fluctuating currency prices, and changing import-export policies will act as challenges for businesses operating in this domain.

Information Source: https://www.fortunebusinessinsights.com/diamond-market-102887

Regional Insights:

North America to Lead Owing to Surging Product Application in Making Wedding Jewellery

North America captured the dominant diamond market share in 2024 owing to growing usage of product in making wedding jewellery and the high disposable income of the region. U.S. records more than half the global demand for the product. Additionally, the region has a high number of influencers which affects product demand positively as the demand for jewellery from the youth increases thus driving market growth. 

Asia Pacific market is slated to grow significantly in the upcoming years due to the high population of China and India. China is the largest consumer of the product as western-style weddings are very popular there. Moreover, the popularity of western fashion, trends, and weddings is rising in Indonesia, Japan and others which will propel market expansion in this region.

Europe market is likely to display stellar growth trends in the forecast timeframe backed by consumer preference for expensive jewellery and high per capita income of populace. The presence of leading companies and change in lifestyle and consumer behaviour will also elevate market augmentation in the region.

Future Outlook

The future of the diamond market is likely to be shaped by a combination of traditional factors and emerging trends. While the natural diamond market will continue to be significant, the synthetic diamond segment is expected to experience the most growth. Technological advancements, coupled with evolving consumer preferences, will drive innovation and change within the industry.

In the next decade, the global diamond market is projected to grow at a steady pace, with a CAGR of around 4-5%. The Asia-Pacific region, particularly China and India, is expected to be a key growth driver, with increasing urbanization and rising middle-class incomes boosting demand.

Furthermore, the emphasis on sustainability and ethical sourcing will become even more critical, with companies that can demonstrate transparency and responsibility likely to gain a competitive edge. The integration of blockchain technology in diamond tracing and certification is one example of how the industry is adapting to meet these demands.

Competitive Landscape:

Investments in Recovery of Unique Diamonds to Aid Market Proliferation

Leading players in the market make several strategic decisions to strengthen their market position such as product launches, improving manufacturing capacity, enhancing geographical reach etc. For instance, in September 2024, Arctic Canadian Diamond Company Ltd. announced that the company has recovered a fancy vivid yellow diamond which is the largest of its kind in Canada. The recovery of these types of the diamonds will ensure the highest revenue for the company.

Key Industry Development:

August 2024: The KGK Group inaugurated its new diamond manufacturing facility in Saurimo. This move will help the company to establish a strong customer base in Angola.