In contrast with precious metals and other natural resources industries, which rely on multiple sources of demand, the diamond industry derives practically all its value from consumers’ demand for diamond jewellery. The outlook for the industry is thus intrinsically linked to the strength of consumer desire for diamonds.
Positive demand growth for diamonds will almost certainly outstrip growth in carat production in the next 10 years, given the lack of major new discoveries in the last decade and the projected production slowdown in several existing mines. Even under scenarios of volatile or weaker global economic growth, demand for diamonds is expected to show positive real growth in the next decade. Across the value chain, companies that are able to innovate and differentiate themselves will be the best positioned to capture the opportunities created by this supply demand dynamic.
Focus on two main areas will help the industry to achieve its full growth potential over the coming years.