The retail jewellery sector is brimming with potential, revealing a lucrative opportunity for prominent gems and jewellery brands. In a recent conversation, Amit Pratihari, the managing director of De Beers Group India, shared his thoughts on shifting consumer preferences, the rise of lab-grown diamonds (LGDs), and De Beers’ ambitious strategy for expanding its footprint in India.

The Impact of Lab-Grown Diamonds on the Market

Lab-grown diamonds have experienced a dramatic decline in their value, plummeting nearly 90% since 2015. Currently, wholesale prices hover between $50 and $150 per carat, while retail prices are also on a downward trend. This situation echoes past experiences with lab-grown rubies, emeralds, and sapphires, which initially commanded high prices before crashing due to oversupply. With a wave of misinformation circulating, it is vital for consumers to differentiate between natural diamonds and LGDs to make educated purchasing choices.

Shifting Consumer Preferences in the Diamond Industry

As the global jewellery market evolves, there is a noticeable shift toward branded jewellery, especially among younger consumers. More women are now buying jewellery for themselves, whether to celebrate milestones, special occasions, or simply for personal enjoyment. LGDs are increasingly being integrated into affordable fashion jewellery, mirroring historical trends seen with synthetic stones. Today’s consumers are becoming savvier, opting for jewellery that retains its value over time instead of items that lose worth quickly.

De Beers’ Strategic Goals for the Coming Years

Recently, De Beers has forged a long-term agreement with Botswana, recognized as the top diamond producer globally and a trusted ally for over five decades. As the supply of natural diamonds continues to dwindle—having peaked two decades ago—demand is expected to rise, fueled by millions of new middle-class households in key markets. De Beers is committed to ensuring a sustainable supply of natural diamonds while strategically growing its presence in high-demand regions.

Upcoming Projects and Expansions

De Beers is actively investing to secure its future supply of diamonds. The Venetia underground mine project in South Africa is advancing, and in Botswana, early development stages for the Jwaneng underground mine—the world’s richest diamond mine—are underway. Additionally, the company is expanding its De Beers London Luxury Maison brand on a global scale. In India, the focus is on revitalizing the Forevermark jewellery brand to capitalize on the surging demand for natural diamonds.

Emerging Markets for Diamonds

While the U.S. remains the largest consumer of natural diamond jewellery, showing signs of demand stabilization into 2024, China has faced challenges in luxury demand but is hinting at a gradual recovery. Besides these markets, India, Japan, and the Gulf states are emerging as strong contenders, with a growing interest in natural diamonds.

De Beers’ Plans for the Indian Market

India possesses vast untapped potential in the jewellery sector, with natural diamonds currently making up only about 10% of the Indian jewellery retail market—substantially lower than the figures in more developed markets like the U.S. Acknowledging this opportunity, De Beers is intensifying its efforts surrounding the Forevermark brand. Furthermore, the strategic alliance with Tanishq aims to introduce a broader audience in India to the uniqueness and value of natural diamonds.

By adapting to these evolving trends and consumer behaviors, De Beers is positioning itself to thrive in a competitive landscape while enriching the jewellery experience for customers in India and beyond.