The global diamond market was valued at USD 106.70 Billion in 2024 and is projected to reach USD 167.94 Billion by 2034, growing at a CAGR of 4.64% between 2025 and 2034. This growth reflects not just the timeless allure of diamonds in jewelry, but also their expanding role in industrial applications and the rising popularity of lab-grown diamonds.
Diamonds, made of pure carbon, are the hardest naturally occurring mineral on Earth. Renowned for their brilliance, hardness, and sparkle, they are widely used as precious gemstones in jewelry and as industrial tools in sectors such as construction, oil drilling, and electronics.
Diamonds are found in kimberlite pipes, glacial tills, and alluvial gravels, typically located deep below the Earth’s surface. With growing demand in both luxury and industrial segments, the diamond industry continues to evolve rapidly.
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Diamonds are increasingly perceived as long-term investments. With disposable incomes rising and consumer appetite for luxury goods growing, demand continues to soar. For instance, LVMH reported a 167% revenue surge in its jewelry & watches segment in 2021, crossing USD 10 billion after acquiring Tiffany & Co.
Beyond jewelry, diamonds play a crucial role in industries such as oil & gas drilling, construction, and chip manufacturing. Their ability to cut through hard surfaces makes them indispensable. In drilling activities, diamond drills can reduce costs by up to 50%, adding strong momentum to market growth.
The average cost of 1 carat ranges between USD 1250 and USD 1700, depending on clarity, size, and cut. Such high prices may restrict broader adoption, particularly in emerging economies. Additionally, the labor-intensive process of crafting diamond jewelry adds further costs.
Lab-created diamonds, identical in appearance and chemical structure to natural ones, are gaining strong traction. According to industry analyst Edahn Golan, lab-grown diamonds already represent 17.3% of diamond engagement ring sales in 2024—up from just 1.7% three years ago.
Partnerships are shaping the future of the diamond industry. In June 2024, the National Diamond Council (NDC) joined hands with 8 major brokerage firms to strengthen diamond promotion after Alrosa’s exit due to geopolitical issues.
North America: The U.S. dominates polished diamond consumption, driven by a strong luxury jewelry market.
Asia Pacific: Led by China and India, rapid growth is supported by rising middle-class incomes and demand for bridal & fashion jewelry.
Europe: Stable market with strong roots in high-end luxury fashion.
Africa & Russia: Remain global leaders in rough diamond production.
Middle East: Growing role due to wealthy consumers and retail expansion, especially in the UAE and Saudi Arabia.
By Type
Natural Diamonds
Synthetic (Lab-grown) Diamonds
By Application
Jewelry & Ornaments
Industrial Applications
Major companies driving the diamond industry include:
Rio Tinto Diamonds
De Beers Group
Alrosa-Nyurba
Petra Diamonds
Leviev Group
Lucara Diamond Corp
Graff Diamonds
Blue Nile
Chow Tai Fook
Signet Jewelers
Environmental Concerns: Diamond mining causes deforestation, soil erosion, and ecosystem damage.
Ethical Issues: The ongoing problem of blood diamonds continues to threaten the market’s image. Reports suggest that 140,000 carats of conflict diamonds have been smuggled from Africa since 2018.
Market size: USD 106.70 Billion (2024) → USD 167.94 Billion (2034)
Growth rate: 4.64% CAGR
Jewelry & ornaments remain the largest application segment
Africa will dominate production, while Asia-Pacific will lead demand growth
Lab-grown diamonds are a fast-emerging market disruptor
The global diamond market is entering an exciting phase. While natural diamonds continue to symbolize luxury and prestige, the rise of lab-grown alternatives, growing industrial use cases, and regional demand surges are redefining market dynamics.
The sparkle of the diamond industry isn’t fading—it’s only becoming brighter, more diverse, and more sustainable as we move toward 2034.