The diamond industry is in the midst of a transformative year, shaped by evolving consumer preferences, geopolitical volatility, and a renewed emphasis on craftsmanship. As round brilliants take a backseat, fancy-shaped diamonds are emerging as the stars of 2025, reflecting a cultural shift toward individuality and artistry.

But beneath the sparkle lies a complex web of challenges, tariff anxieties, supply chain disruptions, and economic uncertainty that are reshaping the global market.

The Rise of Fancy Shapes, Why 2025 is All About Unconventional Cuts

For decades, round brilliant diamonds dominated engagement rings and luxury jewelry. But in 2024, elongated and geometric shapes are redefining elegance. Here’s what’s fueling the trend:

Oval Diamonds -

Ovals have surged to the forefront, particularly in the 2.5–2.99 carat range, where their elongated silhouette maximizes perceived size. In the U.S., high-quality ovals (D–I color, VS–SI clarity) now command a 5–10% premium over pears, driven by their versatility in modern settings like solitaires, halos, and three-stone designs.

Emerald & Radiant Cuts -

Emerald cuts, with their stepped facets and “hall of mirrors” effect, are prized for their understated glamour. However, their large, open tables demand high clarity grades (VS+) to avoid visible inclusions.

Meanwhile, radiant cuts, a hybrid of emerald and round brilliance, are gaining traction for their fiery sparkle.

Pear Shapes -

Pear-shaped diamonds (teardrop cuts) are experiencing a renaissance, particularly in 2–3 carat sizes. Their hybrid shape, a blend of round and marquise, offers a flattering elongation. However, poorly cut pears often suffer from uneven light performance, making precision critical.

Pears are 5–10% cheaper than ovals in the U.S., creating opportunities for value-focused buyers. Discover CaratX’s Pear Shape Guide for expert buying tips.

The Small-Stone Surge -

Demand for 0.30–0.49 carat diamonds in F–I colors is skyrocketing, driven by:

Stackable Trends: Millennials and Gen Z are layering delicate rings, necklaces, and bracelets.

Affordability: Smaller stones allow buyers to prioritize quality (e.g., VS clarity) without breaking the bank.

Customization: Mix-and-match shapes in eternity bands, like alternating ovals and emeralds.

Browse CaratX’s Petite Fancy Diamonds for curated options under 0.50 carats.

The Decline of Square Cushions -

Once a staple of vintage-inspired designs, square cushion cuts are falling out of favor. Buyers perceive them as “dated,” opting instead for modern elongations like radiants. Retailers are discounting excess inventory, but poorly cut stones (even at 3+ carats) remain stagnant.

Global Uncertainty, How Tariffs, Trade, and Economics Are Reshaping Supply -

The diamond market is deeply interconnected, and 2024’s geopolitical landscape is creating ripple effects across the supply chain.

U.S. Tariff Anxiety -

Fear of reinstated Trump-era tariffs (up to 15% on jewelry imports) has caused importers to pause shipments, awaiting policy clarity. The U.S. International Trade Commission (.gov) warns this could disrupt the $100B+ U.S. jewelry market, raising consumer prices by 10–20%.

Impact on Retailers:

India’s Diamond Crisis -

India, which processes 90% of the world’s diamonds, faces a dual crisis:

Polished Exports Down 14%: Year-to-date exports fell to $2.4B due to reduced U.S. orders.

Rough Imports Down 33%: The $2.8B drop reflects cautious buying by cutters.

The slowdown threatens 1.5M jobs in Surat, the heart of India’s diamond industry. Learn how CaratX supports ethical practices via our Responsible Sourcing Initiative.

China’s Luxury Slowdown -

While China remains a key consumer, its post-pandemic recovery has lagged. Bain & Company reports 3% growth in luxury spending, half of 2023’s rate, as buyers prioritize experiences over jewelry.

The Anatomy of a Perfect Cut -

Symmetry: Misaligned facets in ovals or pears create “hot spots” and dark areas.

Depth Percentage: Ideal depth for radiants is 60–70%; too shallow or deep kills brilliance.

Bowtie Effect: Common in pears and ovals, caused by light leakage. The Gemological Institute of America (GIA) offers cut grading for fancy shapes.

The Premium for Precision -

A well-cut radiant can command 20–30% higher prices than a mediocre one. CaratX’s Diamond Cut Guide explains how to evaluate proportions using GIA reports.

Consumer Trends -

Generational Shifts

Millennials: Prioritize uniqueness (e.g., salt-and-pepper diamonds in edgy settings).

Gen Z: Seeks sustainability, favoring lab-grown and recycled stones.

Baby Boomers: Invest in high-color (D–F) fancy shapes as heirlooms.

Regional Preferences

U.S.: Elongated shapes dominate; 2.5-carat ovals are the “sweet spot.”

Europe: Vintage-inspired emeralds and Asscher cuts thrive.

Middle East: Bold 5+ carat radiants and yellow diamonds symbolize opulence.

Navigating the Market -

For Buyers -

Prioritize Certification: Only trust GIA or AGS-graded stones.

Consider Lab-Grown: Save 30–50% with identical optical properties.

Negotiate Smartly: Use tariff uncertainty to negotiate discounts on slow-moving stock (e.g., square cushions).

For Investors -

Stockpile Premium Fancies: High-demand shapes (ovals, emeralds) are likely to appreciate.

Monitor Tariff Policies: Follow updates from the U.S. Trade Representative (.gov).

Brands emphasizing sustainability, like CaratX’s Fair Trade Diamonds, are gaining market share.

Industry Insights -

LVMH vs. Gemfields -

LVMH’s Jewelry Division: Grew 1% in Q1 2024, driven by Tiffany’s iconic designs.

Gemfields’ Struggle: Revenue fell 19%, reflecting softer demand for colored gemstones.

Lab-Grown Diamonds -

Lab-grown diamonds now occupy 12% of the market, per MVI Market Research. While they’re cannibalizing lower-tier naturals, they’re also expanding the market by attracting younger buyers.

Conclusion -

The 2025 diamond market is a landscape of contrasts, bold creativity meets economic caution. For buyers, fancy shapes offer unparalleled self-expression; for investors, volatility creates opportunity. As the industry navigates tariffs and trends, knowledge and agility are paramount.

Ready to Explore 2024’s Top Trends?

Dive into CaratX’s Fancy Shape Gallery for handpicked ovals, emeralds, and radiants.

Educate yourself with our Diamond Buying Academy.