Archive · 27 Jul 2025
Diamond Industry Faces Challenges as Demand Declines Globally
Imagine diamonds, which used to be super popular, are now having a tough time.
The company that sells them, DeBeers, is struggling because people aren't buying as many.
Sales are down, and they have a lot of diamonds sitting around.
One reason is that lab-made diamonds are becoming popular because they are cheaper.
Also, there are fewer diamonds coming out of the ground.
It's like the old saying about diamonds lasting forever is being challenged as the diamond industry faces a shift.
DeBeers, a major player in the diamond industry, is facing challenges due to declining demand.
Anglo American is considering a second write-down of DeBeers' valuation and seeking a buyer.
Diamond sales fell 25% in 2024 to $2.72 billion, with the average price index down 20%.
The company's inventory crisis includes a $2 billion stockpile of rough diamonds.
Lab-grown diamonds are gaining popularity, impacting the natural diamond market.
- Who
- DeBeers, Anglo American
- What
- DeBeers is facing challenges, including a decline in demand and inventory issues, causing financial strain.
- When
- 2024 sales fell 25%, and the company is seeing challenging trading conditions.
- Where
- Global diamond market
- Why
- Declining demand, increase in lab-grown diamonds, and reduced natural diamond supply are contributing factors.
Natural Diamonds
Lab-Grown Diamonds
Market Share
Natural Diamonds
Natural diamonds have faced production decline, reduced supply, and a decrease in average prices.
Lab-Grown Diamonds
Lab-grown diamonds are experiencing robust growth and gaining market share due to their lower price point.
- DeBeers Valuation Cut
- $1.56 billion (last year)
- 2024 Sales Decline
- 25%
- Average Price Index Drop (2024)
- 20%
- Rough Diamond Inventory
- $2 billion
- 2024 Production Drop
- 22%
- Lab-grown diamond market value (2023)
- $22.79 billion