North America Diamond Market Outlook to 2028

North America Diamond Market Overview

The North America Diamond Market was valued at USD 51.01 billion. This growth has been driven by increasing demand for diamonds, particularly in the luxury and jewelry sectors, with consumer preferences for bespoke designs, ethical sourcing, and innovative marketing campaigns further fueling the demand.

Major players in the market are De Beers Group, Alrosa, Lucara Diamond Corp., Dominion Diamond Mines, and Petra Diamonds. These companies control a significant portion of the supply chain, from mining to sales, and have established strong distribution networks that enhance their market presence.

In September 2024, De Beers announced its readiness to comply with G7s stricter diamond import regulations, which now apply to diamonds over 0.5 carats. De Beers emphasized its commitment to traceability, with over 2.6 million rough diamonds and 370,000 polished diamonds tracked via its Tracr blockchain platform, ensuring transparency and ethical sourcing.

In 2023, the state of New York emerged as a dominant player in the market, due to the city's role as a global hub for luxury goods, fashion, and jewelry, with the New York Diamond District being one of the largest diamond markets in the world. The high concentration of retailers, manufacturers, and consumers in New York has positioned the state as a leading region for diamond sales.

North America Diamond Market Segmentation

The market is segmented into various factors like product, end-user, and region.

By Product: The market is segmented by product into natural diamonds and lab-grown diamonds. Natural diamonds held a dominant market share due to their long-standing preference and perception of rarity, and prestige.

By End-User: The market is segmented by end-user into jewelry, industrial, and electronics. Jewelry was the dominant segment, by the high demand for luxury items, particularly in the USA, where diamonds are a popular choice for engagement rings and other high-end jewelry pieces.

By Region: The market is segmented by region into USA and Canada. The USAs dominance can be attributed to its large consumer base, high disposable incomes, and well-established luxury goods market.

North America Diamond Market Competitive Landscape

Company Name

Establishment Year

Headquarters

De Beers Group

1888

London, UK

Alrosa

1992

Mirny, Russia

Lucara Diamond Corp.

2007

Vancouver, Canada

Dominion Diamond Mines

1994

Calgary, Canada

Petra Diamonds

1997

Jersey, UK

Lucara Diamond Corp.: In 2023, Lucara Diamond Corp. discovered a massive 2,492-carat diamond at its Karowe Mine in Botswana, marking the second-largest diamond ever found. This discovery, enabled by advanced XRT technology, reinforces Botswana's key role in global diamond production, contributing 40% to its GDP and 90% of exports.

Petra Diamonds: In May 2024, Petra Diamonds secured long-term Power Purchase Agreements (PPAs) with Etana Energy, aiming to source 36-72% of the electricity for its Cullinan and Finsch mines from renewable energy by 2026. This move supports Petras goal of reducing its scope 1 and 2 emissions by 35-40% by 2030, aligning with its sustainability strategy.

North America Diamond Market Analysis

Market Growth Drivers

Consumer Preference for Ethical Diamonds: In 2024, consumer demand for ethically sourced diamonds in North America rose, particularly among millennials and Gen Z. Approximately 3 million consumers are seeking conflict-free diamonds, driving the growth of ethical sourcing channels. Companies adhering to transparent sourcing practices, such as De Beers and Brilliant Earth, are seeing a rise in sales of ethically sourced diamonds, supporting market growth.

E-Commerce Growth for Diamonds: Online sales have become a growth driver in the diamond industry. In 2024, over 1.5 million diamond jewelry pieces were sold online in North America, due to increased consumer confidence in digital retailing and better access to product certification and reviews. E-commerce platforms such as Blue Nile are experiencing double-digit growth.

Expansion of Lab-Grown Diamonds: The rise in demand for lab-grown diamonds has been notable, with 7 million diamonds sold in the first half of 2024. This is expected to double in the next few years, as consumers prefer sustainable, affordable alternatives. Retailers like Lightbox Jewelry are capitalizing on this trend, with substantial investments in production.

Market Challenges

Sustainability Pressures: The mining sector faces growing pressure to reduce environmental impacts. In 2024, regulations requiring carbon-neutral mining practices have added compliance costs for companies like Dominion Diamond Mines. This is increasing operational challenges, especially for traditional mining companies

Supply Chain Disruptions: Global supply chain issues, exacerbated by geopolitical tensions, are causing delays in diamond exports and imports in 2024. With over USD 1 billion in diamonds held up in shipping delays, retailers are facing major shortages, disrupting the market.

Government Initiatives

Canadian Tax Incentives for Sustainable Mining: The Canadian government is implementing tax incentives to support the diamond industry through sustainable mining practices. These initiatives include a 30% tax credit for investments in clean technology, aimed at reducing emissions and promoting eco-friendly mining operations. This approach not only enhances the industry's environmental performance but also positions Canada as a leader in critical mineral production, essential for a low-carbon economy.

North America Diamond Market Future Outlook

The future trends in the North America diamond market include growth in lab-grown diamonds, the rise of AI in diamond grading, increased ethical sourcing, and innovations in sustainable mining technologies.

Future Market Trends

Increased Use of AI in Diamond Grading: By 2028, AI-based diamond grading systems are expected to become industry standard, with major players like Petra Diamonds and De Beers investing millions in AI technology. This will lead to more accurate grading and enhanced consumer confidence, driving higher sales.

Rise in Ethical Sourcing: Ethical sourcing will continue to grow, with an estimated 50 million ethically sourced diamonds entering the market annually by 2028. Stringent government regulations and consumer demand for transparency will push more companies to adopt conflict-free sourcing practices.
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