"2024": Again, it was a challenging year but then again -and aside tech-, every industry faced its obstacles, its declines, its challenges.
Ours was fourfold:
Four Challenges the Diamond Industry Faced in 2024
- Lab-Grown Diamonds
Lab-grown diamonds (LGD) have shaken up the industry with their lower prices and ethical appeal (‘although 2.000 plants running at full speed, blowing CO2 into the air can hardly be called ethical or ecological’) Many (new) consumers now choose these over natural diamonds, challenging us to highlight the unique value and heritage of natural gems.
None of the LGD retailers though add the necessary disclosure to their sales. We believe it should be mandatory that the customer is told that when they leave the store, the value of their purchase is reduced to the scrap value of the gold. For the LGD, it loses all value when offered onto the second-hand market or when returning it to the store.
- Falling Demand in China
China, once a key market, saw a dip in diamond sales in 2024. Economic uncertainty and shifting consumer priorities have slowed demand, creating a need for new markets and strategies.
- Millennials and Gen Z Buy Less
Younger generations buy far fewer diamonds than their parents, favouring tech & travel over luxury items. The industry must rethink how to connect diamonds to their values.
- Recycled Diamonds on the Rise
About 10% of diamonds sold today are recycled, as younger generations inherit and resell family heirlooms. Dealers repolish and recut these gems, adding competition to newly mined stones.
Conclusion:
2024 brought big changes to the diamond industry. Lab grown diamonds are increasingly becoming the flagship product of the Pandora’s and Swarovski’s of this world, while natural diamonds will mainly be sold by quality retailers to customers appreciating their cross-generational significance.
It is the group that cherishes the idea of leaving behind meaningful treasures that carry both value but also their legacy forward.
We wish you as well as the world, a more peaceful 2025!
Rob & Céline
The Diamond House Group.
