Udyamee, Ahmedabad:
The global diamond industry, after facing significant challenges such as price volatility and fluctuating demand, is now witnessing a strong resurgence. In recent months, diamond prices have increased by 10%, driven by renewed consumer interest in key markets, including the U.S., Europe, China, and India. Notably, India’s tier-2 and tier-3 cities are emerging as major contributors to the demand for natural diamonds. Industry experts forecast a steady recovery, with diamond consumption expected to grow by 15-20% in 2025, particularly for smaller-sized stones.
Market Trends and Growth Drivers
Rising disposable incomes and evolving consumer preferences for natural diamonds over lab-grown alternatives have contributed to the industry’s recovery. India’s growing middle class and increasing urbanization in smaller cities are fueling demand. Meanwhile, high-net-worth individuals in China and the U.S. are showing renewed interest in luxury jewelry, boosting sales for premium diamond segments. Analysts also note that inventory corrections by major players and supply chain stabilization have led to better price realization for the industry.
Retailers and manufacturers are shifting focus to branding, digital outreach, and sustainability to attract modern consumers. The integration of blockchain-based tracking for ethically sourced diamonds and innovative marketing campaigns emphasizing exclusivity are helping increase consumer confidence.
Industry Challenges and Strategic Adjustments
Despite positive market indicators, certain challenges persist. The ongoing slowdown in the Surat diamond industry has impacted manufacturers and traders. However, industry leaders are taking strategic steps to streamline operations, optimize costs, and introduce flexible payment models to attract buyers. Additionally, efforts are being made to secure government support, ensuring that the sector remains competitive on a global scale.
Jayantibhai N. Savaliya, Regional Chairman – Gujarat Region, GJEPC, stated, “GJEPC has actively participated in all representations made to the Government of Gujarat regarding the current industry slowdown. We attended the Labour Commissioner’s meeting on March 19, 2025, in Surat, showing solidarity with manufacturers and traders. Additionally, we engaged with the task force committee constituted by the Hon’ble Chief Minister to address this matter, reaffirming our commitment to ensuring business continuity.”
The Role of Innovation and Sustainability in Business Growth
To drive long-term growth, industry players are investing in advanced cutting technologies, AI-driven grading systems, and automated manufacturing processes to improve efficiency and reduce waste. Luxury brands and retailers are also leveraging direct-to-consumer (DTC) models, bypassing traditional middlemen to enhance profitability and offer competitive pricing.
Sustainability remains a key differentiator in the industry. Brands that emphasize ethical sourcing, carbon-neutral practices, and traceable supply chains are gaining preference among environmentally conscious consumers. De Beers, Alrosa, and Rio Tinto have already announced major sustainability initiatives, signaling a global shift toward responsible mining and trade practices.
Future Outlook: A Sparkling Path Ahead
As global demand stabilizes, the diamond industry is positioned for long-term expansion. Strategic initiatives such as blockchain-based transparency, sustainable sourcing, and digital transformation will further enhance consumer trust. With trade bodies and industry leaders adapting to evolving market dynamics, the future of the diamond sector looks brighter than ever.
