The demand for diamonds has declined, particularly in the Chinese market, resulting in falling prices. Lab-grown diamonds, which are cheaper and more accessible, have become increasingly popular, contributing to the decline in natural diamond prices. De Beers, once a dominant player in the diamond industry, is facing challenges and restructuring its business. The industry is also facing challenges due to economic conditions, changing consumer preferences, and a lack of large-scale category marketing. However, there is hope for the industry through marketing collaborations and efforts to reignite consumer demand, particularly in China.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Declining demand for diamonds in China | Decline in demand for diamonds | Lab-grown diamonds and other gemstones become more popular | Growing preference for lab-grown diamonds and other gemstones |
| Falling diamond prices | Decrease in diamond prices | Prices continue to fall | Declining demand and growing popularity of lab-grown diamonds and other gemstones |
| Anglo American plans to divest De Beers | Restructuring of business | De Beers is sold off | Shareholder preference for a longer-term strategy focused on copper and green infrastructure buildout |
| Dwindling diamond demand in China | Decrease in Chinese demand for diamonds | Chinese consumers choose gold and lab-grown gems over diamonds | Falling marriage rates, preference for other jewelry options, and focus on experiences over products |
| Rapid growth of lab-grown diamonds | Increasing popularity of lab-grown diamonds | Lab-grown diamonds make up a larger share of the diamond market | Lower prices and increasing consumer acceptance of lab-grown diamonds |
| Diamond industry in trouble | Challenges in the diamond industry | Natural diamond prices continue to decline | Declining demand and changing consumer preferences |
| Marketing campaigns to reignite demand | Efforts to increase demand for diamonds | Industry marketing campaigns to drive diamond sales | Collaborations between industry players and marketing initiatives to create desire for diamonds |