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Future of natural diamonds challenging; holds promise of transformation: BCG report

A new report by the Boston Consulting Group (BCG), commissioned by De Beers Group, unveils the critical factors that will shape the future of the natural diamond market

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A new report by the Boston Consulting Group (BCG), commissioned by De Beers Group, unveils the critical factors that will shape the future of the natural diamond market.In an era marked by rapid changes and emerging challenges, the natural diamond industry stands at a pivotal juncture. A recent report by the Boston Consulting Group (BCG), commissioned by De Beers Group, sheds light on the critical factors shaping the future of the natural diamond sector. With primary diamond supply projected to decline and demand dynamics evolving, the industry is poised for a significant transformation, it notes.

The cornerstone of the natural diamond industry’s future is the anticipated decline in primary supply. The report highlights that the primary production of natural diamonds is expected to decrease by approximately 1% CAGR over the next decade. This decline is driven by the diminishing yields from ageing mines, a scarcity of new discoveries, and constrained exploration budgets over the past ten years. While there is potential for some increase through brownfield expansions, the overall outlook suggests a tightening of supply.

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International News

Chow Tai Fook Cashes In On Hong Kong’s Tourism Comeback

As Travelers Return and Gold Prices Wobble, The Jewelry Giant Proves A 52% Profit Jump Is Anyone’s Best Accessory

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Hong Kong jewelry giant Chow Tai Fook just wrapped up its fiscal year with fantastic  numbers -group revenue climbed 5% to HKD 94.4 billion (about $12.05 billion), while profit didn’t just grow, it basically exploded — up 52% to a record HKD 9.08 billion ($1.15 billion).

So what’s behind the glow-up? Two words: tourists and trust. As travelers flooded back into Hong Kong and Macau, same-store sales there jumped a staggering 17%. Mainland China wasn’t far behind, posting 7% growth even as the company admitted things got a little shaky in the final quarter thanks to gold prices doing their usual rollercoaster routine.

Chow Tai Fook didn’t just get lucky — they’ve been quietly reinventing themselves. Think less “grandma’s jewelry counter,” more curated boutique energy: trading out older locations for spots in upscale malls and leaning hard into branded collections instead of generic gold-by-the-gram sales.

Fixed-price jewelry (the stuff with a set price tag, not market-rate gold) shot up 16%, with the diamond-studded Hua Collection emerging as one of the year’s breakout hits. Gold jewelry sales overall: up a modest 3%.Store count: 5,540 in mainland China, 96 across Hong Kong and Macau

In its own words, the company chalked up the rebound to brand transformation efforts paying off even amid a softer mainland market. At the same time, the tourism recovery did some heavy lifting for Hong Kong and Macau sales. Chow Tai Fook believes fiscal 2027 will be much stronger, with “significantly fewer” store closures, as demand stabilizes.

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