Five important trends in the diamond industry right now – by Paul Zimnisky (Mining Review Africa – February 15, 2021)

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Paul Zimnisky, independent diamond industry analyst and consultant.

Despite relatively stable consumer demand for diamonds in established markets like the U.S. and notable growth from newer markets like China, for the most of last decade the diamond industry has felt apathetic.

This can in part be explained by an arguably oversupplied supply-chain, insufficient marketing efforts and a general pessimism towards the diamond business as a changing consumer economy challenges traditional industries.

That said, as of late, the diamond industry has been acknowledging these challenges, in some areas more proactively than others, with various macro as well as more micro initiatives.

Perhaps serendipitously, the events of 2020 seemed to pressure the industry to take a more accelerated approach to many of these initiatives, five of which are more pronounced in my opinion. These are briefly analysed below:

Prioritisation of sustainability

I would love to see the diamond industry be a leader in the area of sustainability. Apart from simply being the right thing to do for future generations, from strictly a business standpoint, I think a robust approach to sustainably is actually a necessity for the industry given that diamonds are discretionary item that appeal to consumers emotions – simply put, the product has to have a positive connotation with people and make consumers feel good.

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