The diamond industry is a significant global market, valued not only for its luxury appeal but also for its economic impact across the United States and internationally. As of 2024, this industry is navigating a landscape shaped by shifting consumer demands, technological innovations, and a renewed emphasis on ethical sourcing.

American Diamond Market Insights

The American diamond market is one of the largest worldwide, heavily influenced by cultural trends, retail developments, and socioeconomic factors. Despite economic uncertainties, demand for diamonds, especially lab-grown diamonds, has been surging. These alternatives are increasingly favored due to their lower price and environmental footprint, appealing particularly to younger, socially conscious buyers.

A trend toward lab-grown diamonds is reshaping the industry, with analysts projecting a significant increase in market share over the next few years. In 2023 alone, lab-grown diamonds accounted for over 10% of U.S. diamond jewelry sales, a figure expected to continue rising as Gen Z and Millennial buyers focus on sustainability and value.

Additionally, the U.S. jewelry e-commerce sector is booming, with online sales forecasted to capture nearly 30% of the market by the decade’s end. Retailers are focusing on seamless digital shopping experiences, offering virtual try-on features, transparent pricing, and customized options, which are increasingly popular among younger, tech-savvy consumers​.

Global Diamond Market Trends

Globally, the diamond industry faces both challenges and opportunities. Key regions, including Asia-Pacific and Europe, are pivotal players in shaping future demand. China's recovery post-pandemic, for instance, has been a major driver, with diamond sales in China rising by approximately 19% year-on-year, largely due to an increase in disposable incomes and a surge in luxury purchases. This recovery has a cascading effect on global markets, providing a much-needed boost as other regions stabilize post-COVID​.

China: A Key Market on the Rise

China has long been a major player in the diamond industry, and recent data suggests a resurgence in demand. After a period of pandemic-induced decline, Chinese diamond jewelry sales increased by 19% year-over-year, surpassing pre-pandemic levels by approximately 6%.

This resurgence has been attributed to a robust vaccination campaign, economic recovery measures, and a cultural revival in celebrations, which has led to higher spending on luxury goods, including diamond jewelry. Notably, Gen Z and millennial consumers in China are driving demand for personalized and eco-conscious products, aligning with the global trend of sustainability.

Retailers in China are adapting to this shift by expanding their digital presence and leveraging social media platforms for livestreamed sales events.

This innovative approach has proven effective in reaching younger consumers in lower-tier cities, where access to physical luxury retail locations may be limited. Furthermore, research by Bain & Company highlights that around 60% of Chinese consumers prefer a “phygital” shopping experience, where they can explore products online and complete their purchases in-store. This blend of online and offline shopping is reshaping consumer engagement and allowing for a more personalized and convenient shopping journey.