In their market outlook DeBeers reported weaker demand is expected to continue for some time, given the prevailing levels of midstream inventories. This is expected to be followed by a gradual recovery as demand from the United States, India and other countries draws down midstream inventories.

Retailer re-stocking is expected to be supported by new natural diamond marketing, increasing engagement rates, improving macro-economic conditions and consumer confidence. The wholesale prices of lab-grown diamonds continue to fall, exacerbated by ballooning stocks of lab-grown diamonds in India.

In turn, lab-grown diamond retail prices remain on a downward trajectory, and it is expected that these trends will further reinforce consumers’ understanding of the fundamental differences between lab-grown (LGDs) and natural diamond (NDs) jewellery, DeBeers reported in their Interim Financial Results for 2024.

Given the rapidly deteriorating economics of selling lab-grown diamonds as their prices continue to drop, there are also signs that retailers in the United States are returning their focus to natural diamonds.

In addition, there is a growing focus on diamond provenance which has the potential to reinforce demand for De Beers’ ethically sourced rough diamonds, supported by provenance data registered on the blockchain Tracr platform, particularly given enhanced sanctions on Russian diamond import restrictions by G7 nations expected to be introduced in September 2024.