North America Diamond Market Outlook, 2031

Market Dynamic

Market Growth Drivers • Shift Toward Ethical and Transparent Diamond Sourcing: Consumers in North America are increasingly prioritizing ethically sourced and conflict-free diamonds, especially among younger demographics such as millennials and Gen Z. This shift is encouraging brands like De Beers Group and Brilliant Earth to adopt transparent supply chains and responsible sourcing practices, which is strengthening consumer trust and directly contributing to higher sales. • Rapid Expansion of Digital and E-Commerce Channels: The growing acceptance of online diamond purchasing has significantly boosted market growth, as consumers gain confidence through verified certifications, detailed product visuals, and customer reviews. Platforms such as Blue Nile are benefiting from this shift, making diamonds more accessible and convenient to purchase, especially for younger, digitally inclined buyers. • Rising Popularity of Lab-Grown Diamonds: Lab-grown diamonds are emerging as a strong growth segment due to their affordability and lower environmental impact compared to mined diamonds. Retailers like Lightbox Jewelry are expanding production to meet increasing demand, as these alternatives attract consumers looking for sustainable yet cost-effective options without compromising on appearance. Market Challenges • Stringent Environmental Regulations and Sustainability Pressures: The diamond mining industry is facing increasing regulatory scrutiny related to environmental impact, including the push toward carbon-neutral operations. Companies such as Dominion Diamond Mines are required to invest heavily in sustainable practices, leading to higher operational costs and added compliance burdens. • Supply Chain Disruptions and Logistics Constraints: Ongoing geopolitical tensions and logistical inefficiencies are causing delays in the transportation of diamonds across international markets. These disruptions are affecting inventory availability for retailers, leading to shortages, delayed deliveries, and challenges in maintaining consistent supply. • Changing Consumer Spending Behavior: Younger consumers are gradually shifting their spending priorities toward experiences, travel, and technology rather than traditional luxury goods like diamond jewelry. This evolving mindset is creating pressure on the industry to reposition diamonds in a way that aligns with modern lifestyle preferences. Future Market Trends • Integration of Artificial Intelligence in Diamond Grading and Evaluation: The adoption of AI-driven grading systems is expected to transform how diamonds are assessed, offering greater accuracy, consistency, and transparency. Leading players such as Petra Diamonds and De Beers Group are investing in these technologies to enhance consumer confidence and streamline quality assessment processes. • Mainstream Adoption of Ethical Sourcing Practices: Ethical sourcing is set to become a standard expectation rather than a differentiator, as both regulations and consumer awareness continue to rise. Companies will increasingly focus on traceability and responsible practices to remain competitive and meet evolving buyer expectations. • Growth of Personalisation and Customised Jewelry Offerings: Demand for unique, tailor-made diamond jewelry is increasing as consumers seek products that reflect their individuality and personal stories. Retailers are responding by offering advanced customization options, enabling customers to design bespoke pieces that align with their preferences and occasions.

Key Development

• In September 2024, De Beers announced its readiness to comply with G7s stricter diamond import regulations, which now apply to diamonds over 0.5 carats. De Beers emphasized its commitment to traceability, with over 2.6 million rough diamonds and 370,000 polished diamonds tracked via its Tracr blockchain platform, ensuring transparency and ethical sourcing. • In May 2024, Petra Diamonds secured long-term Power Purchase Agreements (PPAs) with Etana Energy, aiming to source 36-72% of the electricity for its Cullinan and Finsch mines from renewable energy by 2026. This move supports Petras goal of reducing its scope 1 and 2 emissions by 35-40% by 2030, aligning with its sustainability strategy. • In 2023, the state of New York emerged as a dominant player in the market, due to the city's role as a global hub for luxury goods, fashion, and jewelry, with the New York Diamond District being one of the largest diamond markets in the world. The high concentration of retailers, manufacturers, and consumers in New York has positioned the state as a leading region for diamond sales. • In 2023, Lucara Diamond Corp. discovered a massive 2,492-carat diamond at its Karowe Mine in Botswana, marking the second-largest diamond ever found. This discovery, enabled by advanced XRT technology, reinforces Botswana's key role in global diamond production, contributing 40% to its GDP and 90% of exports.