Rough Diamonds Market to Reach USD 1.08 billion by 2030| 3.8% CAGR Amid Rising Cost Pressures

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By Macro Analyst Desk

Global rough diamonds market demonstrates steady resilience despite economic fluctuations, with its valuation reaching USD 832 million in 2023. According to latest industry analysis, the market is projected to grow at a CAGR of 3.80%, reaching approximately USD 1080.20 million by 2030. This enduring demand stems from two distinct sectors – luxury jewelry consumption and indispensable industrial applications – creating a unique market dynamic.

Rough diamonds form the foundation of both aesthetic and functional value chains, serving as the raw material for everything from engagement rings to precision cutting tools. Their dual-purpose nature creates a balanced market ecosystem less vulnerable to sector-specific downturns than single-application commodities.

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Recent Developments

Market & Geopolitical Dynamics

  • Revised Sales Deal for Botswana & De Beers
    Botswana secured a new 10-year diamond sales agreement with De Beers, raising the government’s share of Debswana joint venture proceeds to 30% in the first five years and 40% in the next five, along with a mining license extension through 2054. This bolsters long-term supply stability for the rough diamond market.

  • Botswana’s Economy Reviving with Diamond Market Recovery
    Following a contraction in 2024, Botswana’s finance minister forecasts 3.3% economic growth in 2025, citing a recovery in the diamond sector. De Beers’ extended deal supports this optimistic outlook.

  • Luanda Accord Collective Marketing for Natural Diamonds
    A unified agreement was signed by diamond-producing nations (e.g., Angola, Botswana, DRC, Namibia, South Africa) and industry entities including De Beers to contribute 1% of their rough diamond sales revenue toward a joint promotional campaign through the Natural Diamond Council (NDC). The initiative aims to revitalize demand for natural diamonds amid growing competition from synthetic alternatives.

Industry Disruption: Synthetic Diamonds & Inventory Pressures

  • Lab-grown Diamonds Challenging Natural Market
    Synthetic diamonds, particularly those from China, now account for over 70% of lab-grown diamonds used in jewelry. Their price has plunged to just 7% of equivalent natural stone cost, disrupting traditional producers like De Beers, Alrosa, and Rio Tinto.

  • De Beers Faces Mounting Inventory and Stockpile
    Natural diamond demand has sharply declined—exacerbated by competition from lab-grown stones—leading De Beers to amass its largest diamond inventory since the 2008 financial crisis (~USD 2 billion). Rough diamond sales are projected to fall about 20% this year, though a modest recovery in jewelry sales is expected next year.

  • Price Controls and Market Intervention in China
    To temper price competition, authorities in Henan have mandated a minimum price of USD 15 per carat for rough diamonds weighing 1–10 carats, discouraging undercutting among producers.

Market Overview & Regional Analysis

Africa dominates production with over 60% of global rough diamond supply, concentrated in Botswana, South Africa, and Angola. However, Asia-Pacific leads in processing and consumption, with India’s Surat district handling 90% of the world’s diamond cutting and polishing. This geographic separation between extraction and value-addition creates complex supply chain dynamics.

North America maintains strong demand for high-quality gemstones, particularly in the U.S. bridal market which accounts for nearly half of global diamond jewelry purchases. Meanwhile, Europe serves as both a manufacturing hub (Belgium’s Antwerp) and luxury retail market, with London and Geneva playing pivotal roles in high-end distribution.

Key Market Drivers and Opportunities

The market thrives on several converging trends. Rising disposable incomes in emerging economies expand the addressable market for diamond jewelry, while industrial applications benefit from advanced manufacturing techniques requiring diamond-tipped tools. Jewelry currently commands 70% of rough diamond allocation by value, though industrial uses consume more by volume.

Emerging opportunities include:

  • Blockchain-based provenance tracking addressing ethical concerns
  • Laboratory-grown diamonds carving a parallel niche market
  • New mining technologies reducing environmental impact

Challenges & Restraints

The industry faces mounting pressures from synthetic diamond alternatives which now account for about 15-20% of the gemstone market. Environmental regulations are becoming stricter, particularly regarding water usage in processing operations. Additionally, the concentration of mining operations creates geopolitical risks, with over 70% of production coming from just five countries.

Market Segmentation by Type

  • Natural Rough Diamonds
  • Synthetic Rough Diamonds

Market Segmentation by Application

  • Jewelry Manufacturing
  • Industrial Applications

Competitive Landscape

The market remains concentrated with a few major players controlling supply:

  • De Beers Group (approximately 30% market share)
  • Alrosa PJSC (Russian state-controlled producer)
  • Rio Tinto Diamonds (focusing on high-quality Canadian diamonds)
  • Dominion Diamond Mines
  • Petra Diamonds Limited

Report Scope

This comprehensive analysis covers all critical aspects of the rough diamonds market including:

  • Historical data and 10-year forward projections
  • In-depth regional analysis (production vs. consumption)
  • Technology trends in mining and processing
  • Regulatory environment and compliance requirements
  • Competitive intelligence on major players

The report combines proprietary data with expert interviews to provide actionable insights for stakeholders across the value chain – from miners to manufacturers to retailers.

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