DiamondBuzz
US Diamond Acquisition Study By De Beers Suggest That Diamonds Continue To Hold Strong Emotional and Aspirational Appeal For Today’s Consumer
Eleven Percent Of Women Rank Them As Their Top Luxury Gift, Placing Them Ahead Of Synthetic Lab-Grown Diamonds (8%), Other Gemstones (5%), and Plain Gold Jewelry (4%)
US Diamond Acquisition Study by De Beers offers compelling insights into diamond-buying behaviour, drawing on a study of 18,500 women across the industry’s largest consumer market. The findings clearly suggest that diamonds continue to hold strong emotional and aspirational appeal for today’s consumer.
Core Desirability & Pricing Trends
- Top Luxury Choice: Natural diamonds remain the most desired luxury jewelry product. Eleven percent of women rank them as their top luxury gift, placing them ahead of synthetic lab-grown diamonds (8%), other gemstones (5%), and plain gold jewelry (4%).
- Surging Average Prices: The average price for a piece of natural diamond jewelry rose significantly to $4,063 in 2025, compared to $3,242 in 2023 (a 25% increase).
- Larger Carat Sizes: This price growth is being driven by consumers purchasing larger diamonds, with the average total carat weight increasing to 1.86 carats (up from 1.65 carats in 2023).
The Rise of Gen Z
- Major Market Force: Gen Z has become the second-largest generation buying diamonds. They account for 23% of the total natural diamond demand value, despite making up only 18% of the population.
- High Spending Habits: Gen Z spends nearly double what Baby Boomers spend on natural diamonds, averaging $4,080 per piece compared to the Boomers’ $2,250.
- More Occasions & Self-Expression: Gen Z buys or receives diamonds for an average of 1.83 occasions per year (higher than the 1.7 overall average). They strongly associate diamonds with personal identity and rely heavily on social media for purchase research.
- Gifting and Birthdays: While bridal accounts for 45% of Gen Z demand, family gifting is highly influential—birthdays make up 17% of Gen Z diamond acquisitions compared to 13% across other generations.
Shifting Consumer Motivations
- Rise of Non-Bridal Demand: Non-bridal occasions now account for three-quarters (75%) of overall US diamond demand.
- Personal Milestones: While love remains the core driver, people are increasingly buying diamonds for personal celebrations like a new job, a promotion, recognizing an achievement, or “just because.”
Retail & Market Performance
- Independent Retail Growth: Point-of-sale data from 950 independent US jewelers showed natural diamond sales grew 4% year-on-year in Q4 2025 and 9% in Q1 2026.
- Campaign Success: Colored and low-colored diamonds (K–Z range) featured in De Beers’ “Desert diamonds” campaign outperformed the market, growing 15% and 19% respectively.
- Supply Balance: Declining global production of natural diamonds is expected to support a healthier, improved supply-demand balance in the coming years.
Natural vs. Synthetic Lab-Grown Diamonds (LGDs)
- Value Dominance: While LGD volumes are increasing, declining retail prices keep their total value share low. Natural diamonds command 85% of independent jewelers’ sales value, compared to just 15% for LGDs.
- The 3-Carat Ceiling: LGD sales drop off significantly once stones reach 3 carats or larger, as consumers feel they look too big.
- Profit Risks for Retailers: Due to declining LGD prices and the inability to upsell past 3 carats, retailers risk lower overall sales and tighter long-term gross profits if they rely too heavily on synthetic alternatives.
DiamondBuzz
South African Task Team To Help Struggling Diamond Producers
The South African Government Has Partnered With Mining Industry Leaders To Form A Joint Task Team Aimed At Saving Jobs and Supporting Diamond Producers Facing Severe Market Pressures.
The quick intervention follows major disruptions in the local sector, including Petra Diamonds placing its Finsch mine under business rescue and De Beers announcing a two-year production pause at Venetia, the country’s largest diamond mine.
In a parliamentary reply on October 26, Minister of Mineral and Petroleum Resources Gwede Mantashe confirmed that the team—which includes the Minerals Council South Africa and local diamond producers—will develop strategies to help mines survive current economic headwinds.
The immediate focus is finding practical solutions to protect operations across the entire sector, especially junior and small-scale miners who are being hit the hardest,
Key Industry Challenges
The local diamond sector faces a combination of falling global prices, rising operating costs, and intense competition from lab-grown synthetic diamonds. Official figures highlight the severity of the crisis:
Production Downturn: South African diamond output dropped 19.5% year-to-date through August.
Commodity Slump: According to Statistics South Africa, diamond mining was the weakest-performing mining sub-sector in August, with output falling 23.0% in the three months ending August compared to the previous three months.
Significant Mine Reductions: De Beers reported a 37% year-on-year drop in South African production for Q3 2026 (down to 418,000 carats) as operations wrap up ahead of Venetia’s pause. De Beers expects zero further production in South Africa for the remainder of 2026.
Price Pressures: Lower market values and a strong South African rand reduced average tender prices at the Finsch mine from $56 to $47 per carat, making ongoing operations unviable under current conditions.
The task team will focus on measures to ease cost pressures and address global market shifts. Further details regarding the team’s specific work plan, timelines, and financial resources will be announced as proposals are finalized.
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