Global Diamond Market: Key Trends, Regional Dynamics, and Major Players

Diamonds, the hardest known naturally occurring mineral on the planet, are very rare and have long been valued for their beauty.

Rather than being a single price-driven commodity market similar to oil, gold, or base metals, this sector features distinct segments, each with different dynamics and players, as well as pricing influences such as:

• Upstream (rough diamond production)

This segment includes exploration, mining, initial sorting, and primary sales of rough diamonds.

• Midstream (trading and manufacturing)

Includes the secondary trading of rough diamonds, and their cutting, and polishing as well as initial polished diamond sales or jewelry production preparation.

• Downstream (consumer jewelry demand)

Focuses on jewelry design, fabrication, wholesale to retail, and direct sales to consumers.

Importance of the Global Diamonds Market

From an economic, social, cultural, and symbolic standpoint, it is impossible to underestimate the importance of the global market for diamonds.

For instance, from the perspective of the consumer market for diamond jewelry, experts predict this will reach a value of US$408 billion in 2026, driven by bridal and gifting demand, as well as the continuing growth of the premium category, and the ongoing rise in the number of branded retail locations in both developed and developing markets.

Diamond Journey Phases From Mine to Consumer

As already mentioned, the diamond industry involves a complex value chain. In a nutshell, there are six distinct stages within the industry:

Diamonds pass through a strictly regulated worldwide system at every stage – regulatory infrastructure is ingrained within the entire process, from a diamond's extraction until its eventual sale.

1. At the mining stage, companies require government permits and must adhere to export, labor, and environmental regulations.

• Rough diamonds entering international trade must follow the rules of the Kimberley Process Certification Scheme (KPCS) to prevent conflict diamonds from entering the market. The KPCS requires member states to confirm that rough diamond shipments are conflict-free and do not support rebel movements.
• Shipments to global trading hubs such as Antwerp and Dubai are controlled by customs restrictions, anti-money laundering guidelines, and sanctions compliance.

2. During the cutting, grading, and retail stages, consumer protection regulations require an accurate description of the stone's origin, treatment, and whether it is natural or has been lab-grown.

Financial oversight and fraud regulations apply even to secondary markets.

Competitive Structure and Industry Concentration

The value of the global diamond market was estimated to be US$102 billion in 2025 and this is expected to increase at a compound annual growth rate of 4.6% to reach US$153 billion in 2034, according to Fortune Business Insights.

Top Ten Diamond Mining Companies (2026 Overview)

A small number of powerful diamond companies control almost every facet of the mining industry, from strategic economic development to breakthroughs in extraction.

The top 10 companies driving the diamond industry's engine today are:

Regions Driving the Diamonds Market

World regions can be divided into three categories in terms of the diamond life-cycle:

• The location of diamond mining or production
• Where diamonds are transformed and traded
• Where the consumer market for diamonds is

For production, the market remains dominated by a limited number of producers and producing regions.

Upstream

In the upstream stages of the value chain, the largest diamond-producing nations include Russia, Botswana, Angola, Canada, South Africa, and the Democratic Republic of Congo, according to a report from the Boston Consulting Group and the De Beer Group.

According to Statista, the natural industrial diamond reserves in Russia amounted to 990 million carats as of 2024. Rough diamonds, which make up over 50% of all diamonds mined worldwide, are then subject to cutting, drilling, grinding, and polishing.

Midstream

Following extraction, rough diamonds undergo two rounds of sorting:

1. Into industrial and non-industrial grade which is mainly undertaken on site at the mine before being shipped elsewhere for the second phase of sorting
2. Into characteristics, i.e., size, color, and quality, which is important for identifying the potential value and the most appropriate distribution channel

The sorting facilities of the largest producers are usually found either close to the consumer market or in areas where the mining takes place such as in Botswana, India, Israel, the U.S., Belgium, and Dubai.

Downstream – the final stage of the value chain

During this stage, diamond jewelry is sold to consumers at a price determined by the polished diamond wholesale price, non-diamond content (e.g., precious metals or gemstones), retailer costs, and margin.

Based on the Boston Consulting Group and De Beer Group report, the top five largest markets in this stage are the United States, China, India, the Gulf States and Japan.

In Europe, the major markets are the United Kingdom, Germany, Italy, and France.

Trends Shaping the Global Diamonds Market

There are three major trends in the global diamond market identified by the McKinsey report all of which are leading to serious price fluctuations.

1. Growing success of lab-grown diamonds (LGDs)
2. Increasing environmental, social, and governance concerns
3. Sanctions against Russia, the world’s biggest source of rough diamonds

Trend #1. The massive success of LGDs.

Due in large part to customer demand for more reasonably priced options, the enormous success of LGDs has caused natural stone prices to drop far lower than the mining industry had expected.

• Some producers of natural diamonds are hesitant due to concerns about market cannibalization, but some branded jewelers are investing in lab-grown stones.
• As production rises and costs fall, LGDs may become more appealing.
• Experts expect that LGDs will dominate the market as low-cost fashion items.

However:

• There is an issue of LGDs oversupply
• Luxury brands remain loyal to natural diamonds

Trend #2. Rising environmental, social, and governance (ESG) concerns.

Traceability, sustainability, and ethical sourcing are becoming market necessities rather than ‘nice-to-have’ features but implementing these involves an additional financial burden for the industry.

Growing awareness of ESG aspects, combined with increased concerns about the moral costs of natural stone mining have led to a decrease in demand for natural diamonds in certain markets.

Traceable diamonds can be viewed as a driver of improved customer transparency and trust. As part of traceability requirements, some retailers demand that suppliers maintain records of the purchase contract, the chain of custody, and quality data.

Trend #3. Navigating the sanctions against the biggest rough-diamond producer.

Diamond supply chains around the world are also being highly impacted by various geopolitical tensions, primarily arising from the sanctions imposed on Russian diamonds by the U.S. and the EU.

Alrosa, which produces almost 90% of the diamonds mined in Russia, is the largest diamond producer on the globe, and it has been included on the U.S. and the EU sanctions lists.

Despite the decline in global diamond prices in 2022, regional disruptions are still expected, which will have a significant effect on midstream and downstream operators such as those involved in cutting and polishing as well as specialized retailers.

In addition to the three trends mentioned in the McKinsey report, another trend is emerging:

Trend #4. Growing demand for colorful jewelry.

As customer preferences evolve, so too does the desire for colorful jewelry. The Bureau of Economic Analysis reports that imports of colorful gemstones increased by 136% between 2020 and 2024 but did not provide details of the actual volume of imports.

Colored stones, such as sapphires, emeralds, rubies, and tourmalines, are being actively promoted by retailers and collectors. Consumers prefer colored gems for wedding rings since these are then more unique.

Challenges Facing the Global Diamonds Market

Today, the diamond industry faces several challenges simultaneously, including oversupply, geopolitical issues, and strong competition from lab-grown diamonds.

Let’s take a closer look at each of the challenges.

1. Weaker Demand and Oversupply

After strong sales in 2021 and 2022, the demand for rough diamonds dropped significantly in 2023. At the same time:

• Polished diamond stocks surged
• Inflation and rising interest rates made customers less impulsive
• Retailers purchased fewer supplies

This has resulted in a lower output from producers. For instance, in early 2026, De Beers reduced their predicted output for this year due to unfavorable trading conditions for rough diamonds.

2. Lab-Grown Diamonds’ Impact on the Market

The lab-grown diamond market is growing significantly, particularly for engagement rings.

Lab-grown stones accounted for just 1% of diamond sales in 2015, but by 2024, this had increased to almost 20%.

The trends for engagement rings have changed even more significantly. In 2024, 52% of center stones were lab-grown, an increase from 12% in 2019, according to Forbes.

Aside from being used in engagement rings, lab-grown diamonds are also employed in industrial, high-tech equipment such as:

• Diamond-tipped saws and drills, and abrasives
• Machines to handle hard materials such as stone and metals

3. Sanctions and Regulation

Geopolitics are playing a vital role in the diamond trade as a result of the sanctions imposed on Russia by the EU, and the United States which have led to:

• Higher compliance costs
• Redirected trade flows
• New traceability requirements

According to 2025 Antwerp Diamond Industry Trade Figures, Russian diamond production has mainly been steady despite the restrictions with the majority of these diamonds now being sent to sanction-free markets such as Dubai and India.

However, Antwerp – considered to be the world's leading diamond trade center – has lost around 30% of its imports as a result of the sanctions imposed on January 1, 2024 because a third of its rough diamond supplies came from Russia.

Final word

The diamond market will continue to grow at a steady pace despite the current headwinds, with demand rising across multiple regions, particularly in the Asia-Pacific. Gen Z and Millennials continue to be among the main purchasers and drivers of change, shaping a preference for ethically sourced jewelry.

Brand storytelling and strategic product positioning have become increasingly important. While younger consumers are drawn to lab-grown diamonds, other market segments are showing a renewed appreciation for rare and exceptional natural gemstones.