The natural diamond industry, led by organizations like the Natural Diamond Council (NDC) and De Beers, is implementing various strategies to revive demand amidst significant competition from lab-grown diamonds. The NDC is working on a "hallmark" to differentiate natural stones, and the industry is increasing marketing spend, as evidenced by the Luanda Accord. This push follows a "softening in spend" and a realization that consistent investment in storytelling is crucial for a product associated with emotion and legacy.
Lab-grown diamonds have made substantial inroads, particularly in the US market. Between January and May of this year, lab-grown diamonds accounted for 25% of the volume and 18% of the value of diamond jewelry sold. For engagement rings during the same period, lab-grown represented 57% by units and 30% by value, a significant increase from 10% and 9% respectively in 2020. The average retail price of a one-carat round lab-grown diamond plummeted 79% to $768 between January 2020 and May 2026, while a comparable natural diamond saw a 24% dip to $4,553.
De Beers returned to global category marketing in 2024 to address increased competition and ensure diamonds remain top-of-mind. Their "Desert Diamonds" campaign, launched in the US and set for China, aims to revive desire by focusing on warm-toned diamonds, tapping into the desire for individuality, especially among younger demographics. This campaign has already shown results, with a 19% year-on-year rise in sales of K-Z color diamonds at US independent jewelers in Q1 this year. Millennials and Gen Z are key targets, representing 32% and 55% of US natural diamond demand value, respectively, with Gen Z spending almost double what Boomers spend on natural diamonds. While the natural diamond market saw a 16% volume decline and a 33% value decline between 2015 and 2025, De Beers' marketing efforts and the increasing rarity of diamonds, coupled with emerging signs of consumer demand improvement, are expected to support longer-term growth.
