The future at a glance
Diamond demand will continue to grow in real value terms, driven by the effect of the US economic recovery and the continued growth of emerging markets, especially China.
Positive demand growth for diamonds will almost certainly outstrip growth in production volume in the medium term. Across the value chain, organisations that are able to innovate and differentiate themselves will be best positioned to capture the opportunities created by this supply demand dynamic.
There will be strong competition from other luxury categories, and investment will be required to safeguard and nurture the diamond dream.
Brands will become increasingly important - consumers are seeking them out, and they give retailers an opportunity to differentiate themselves from generic propositions.
Online is rapidly increasing in importance as a channel for both research and sales of diamond jewellery to consumers, and will continue to do so - though the pattern differs by geographic market.
The midstream will continue to come under competitive pressure and, as a result, will professionalise and consolidate; businesses with scale and/or differentiated strategies will thrive.
Diamond production will decline slowly after 2020 with low likelihood of large, economically viable new finds.
As supply from existing mines decreases, mining will become increasingly complex and remote, and increasingly costly as a result. Investment in operational innovation will be required to drive productivity.