FLOSSI AND THE WORLD OF DIAMONDS

As of early 2025, the diamond market is experiencing significant challenges characterized by declining prices, shifting consumer preferences, and industry restructuring.

Declining Prices and Demand

Natural diamond prices have decreased by approximately 26% since their peak in 2022. This decline is attributed to several factors, including reduced demand in key markets such as China and the United States, economic uncertainties, and decreased marriage rates. Additionally, the rapid advancement and increased production of lab-grown diamonds have intensified competition, leading to a 74% price drop since 2020.

Industry Impact and Restructuring

Major industry players are responding to these challenges through strategic adjustments. Anglo-American, for instance, is expected to write down the value of its De Beers diamond business for the second time within a year due to poor market conditions. The company is considering options such as selling or publicly listing De Beers as part of a broader restructuring plan. 

Shifting Consumer Preferences

Lab-grown diamonds are gaining popularity, especially among younger consumers who value their affordability and perceived ethical advantages. In the U.S., sales of lab-grown diamond jewellery increased by 12.5%, while natural diamond jewellery sales declined by 0.7%. This trend is prompting traditional jewellers to reconsider their product offerings and marketing strategies to highlight the unique value of natural diamonds. 

Valentine’s Day is around the corner.