Editor’s Note
This article highlights the growing consumer demand for ethically sourced natural diamonds, particularly in key Asian markets. It underscores the industry’s focus on responsible sourcing, free from conflict, exploitation, and environmental harm.
Global demand for ethically sourced natural diamonds is expected to grow, particularly in rapidly developing Asian economies, according to the company Anglo American.
Anglo American is the parent company of De Beers, a global leader in diamonds that produces approximately one-third of the world’s rough diamonds by value. This production takes place in four countries: Botswana, Canada, Namibia, and South Africa.
Within its portfolio, De Beers (Anglo American: 85% stake), in partnership with the Government of the Republic of Botswana through a 50:50 joint operation known as Debswana, operates one of the world’s richest diamond mines in Jwaneng and one of the largest resources, in terms of total carats, in Orapa.
After high demand in 2021 and 2022, global demand for rough diamonds fell significantly in 2023. With polished diamond inventories rising and inflation and interest rates increasing, jewelry retailers were cautious about purchasing new stock.
Anglo American indicated that demand for natural diamonds in the United States was affected by economic issues and the increased supply of lab-grown diamonds. Although sales of lab-grown diamonds increased, their wholesale prices fell sharply, further highlighting the difference with natural diamonds.
In China, economic problems reduced consumer confidence, leading to a slight decrease in demand compared to 2022. On the other hand, consumer confidence in India and demand for diamonds grew in 2023, especially towards the end of the year.
Global diamond exports have performed as follows, measured in millions of dollars:
2020: 76,700
2021: 119,000
2022: 131,500
2023: 100,100
Anglo American expects sector conditions to remain challenging in the short term, but long-term prospects are good. Midstream and retail demand stabilized at the end of 2023, although rough diamond inventories increased among producers.
During 2024, if producers release their inventories gradually, the high levels of midstream inventories from 2023 are expected to decrease as retailers restock.