Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices by Diamond Industry Report

The diamond industry was valued to be worth USD 112.99 million tonnes in 2021. In the projection period of 2022-2027, the industry is expected to grow at a CAGR of around 2.5 percent, achieving a value of around USD 124.8 million tonnes by 2027.

The diamond industry report broadly studies the industry, together with important segments, movements, drivers, constraints, the competitive landscape, and other critical market features. Diamonds are finished items in the manufacturing business due to their exceptional endurance; they are highly valued as a resource for carving and polishing equipment. Russia and Australia are the biggest category spender by region which is impelling the demand for the diamond industry.

Industry Definition and Segmentation

The crystalline layer over the diamond contains hard molecules grouped in a cubic spinel structure. It shows the maximum toughness and thermal resistance of any pure element, rendering it suitable for commercial slicing and cleaning apparatus. Natural diamonds are manufactured between 150 and 250 kilometres (93 and 155 miles) deep in the Earth's crust and therefore are between 1 and 3.5 billion years old. The diamond industry study is split into segments supported by diamond type (natural- diamond stone, and diamond bort and synthetic), application (cutting, grinding, and polishing), end-user (industrial- construction mining services, stone cutting, polishing, machinery manufacturing, and others and jewellery- rings, necklaces, earrings, and others), distribution channel (online- company websites, and e-commerce sites and offline) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and Latin America).

North America, Europe, Asia Pacific, Middle East & Africa, and South America Regions are Driving the Growth of the Industry

The industry is witnessing growth region-wise as diamonds in the Asia Pacific have increased due to rapid expansion in the jewellery industry. Furthermore, the rise in demand has also been aided by a comeback of luxury purchasing among Chinese millennials. The Middle East and Africa market is being driven by an increase in the popularity of diamonds as a luxury item. The diamond industry in South America is likely to be caused by a rise in individual buying power and desire for new designs.

The exploration of new deposits is driving the market for diamonds. The growing middle-class population and the increased buying power of millennials and generation Z are leading to increased expenditure on the jewellery segment. Its acceptance as jewellery in wedding and engagement celebrations is creating market potential. Furthermore, the market is likely to be propelled by continued strong growth in jewellery items and unique designs around the globe during the forecast period. Other factors such as expansion in the global economy and individual purchasing power are major drivers of the worldwide diamond market.

However, the rise of lab-made, artificial diamonds, which are cheaper, are likely to hinder the market growth. The market can benefit from developing new diamond-based industrial goods, targeting clients with innovative jewellery designs, and the permeation of diamond sales through e-commerce.

Best Procurement Practices

The global diamond industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global diamond regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

Diamonds are found in different places like rocks and stones in riverbeds, mines, ancient volcanoes or deep sand. They can be extracted by machinery or by hand. The gems are rare as many rocks are moved to procure only a few carats. Diamonds are generated more than 90 miles below the Earth's surface, but volcanic activity transports them to the surface, making mining easier. After the stones have been broken down, they are lifted to the surface and transported to a processing factory by truck. Access stones and dirt are removed here so professionals can see the diamond's exact size and purity. It may appear as a dull chunk of glass until it is treated transported from the mine to a processing factory for cleaning and sorting. Diamonds are categorised here based on their weight, colour, and clarity. Specialists then cut the diamond to optimise its value while maintaining transparency. As it is the hardest substance known to man, its cutting is a complex skill that demands specialised equipment, expertise, and technique. Lasers are employed to assist in shaping and finishing it. Paperwork will accompany diamonds that have undergone this rigorous process. The diamond is rated based on the 4C's and given its official certification grade during the final inspection. The final product can then be sold to manufacturers, dealers, merchants, and collectors to make engagement rings, necklaces, bracelets, and other jewellery.

Other Applications of Diamond in the Industrial Segment is Further Bolstering the Procurement of Diamond

The application of diamond in the industrial sector as an abrasive, and demand from industries such as metal machining, construction, and exploratory drilling is furthering the market growth. It is commonly utilised in construction applications such as hand sawing, wire sawing, and core drilling, creating higher demand.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Diamond Industy Report

• Lucara Diamond Corp
• Petra Diamonds Ltd
• Dominion Diamond Mines
• Rio Tinto Plc
• Endiama E.P.
• De Beers Group

Market Landscape

The diamond industry is characterised by various small to medium-sized firms serving a specific nation or area and a few big players catering to the global market, such as De Beers Group, ALROSA, and Rio Tinto. Due to the existence of established competitors, it is difficult to break into the upstream sector. Lab-grown items, on the other hand, have no production limits. As a result, prominent producers are concentrating their efforts on developing lab-grown equivalents for use in jewellery.

Key Initiatives by Companies

• In 2021, global rough diamond production increased by 1.4 percent to 112.99 million tonnes. Botswana's production increased by 37 percent. Angola (26.3 percent) and Canada (16.6 percent) are two other countries anticipated to see considerable increases in production.
• Rough diamond output climbed by 15% to 7.7 million carats in Q4-21, reflecting expected higher rough diamond production to meet continuing strong demand.
• De Beers increased the price of larger stones by roughly 5% in 2022, while smaller raw diamonds saw price increases of up to 20%.