It seems that according to the latest diamond insight report given by the De Beers group, there exists a strong prediction that the world's diamond production output will likely decline this upcoming calendar year. De Beers, one of the top three diamond mining companies by volume, was once the world's foremost rough diamond producer.
The famous Mir mine, owned by another top producer; Alrosa- actually suspended operations this year. Alrosa has been a mainstay player in the rough diamond industry for a long while now, helping to supply the entire jewelry trade with precious natural diamonds for its wealthy clients. Another one of the big-three companies; Rio Tinto, has also guided a decline in its own production.
Millennials, along with Gen Z age groups in the market, constitute about 67% of the world's diamond and diamond jewelry sales in 2017. De Beers expressed it hopes that these two markets will continue to carry demand in the following years to come. They've noted that market demand reached an all-time high of 82 billion dollars that year, achieving a new record in the trade.
Image credit (above) to De Beers Retailers & Group of Companies
As the world's population increases day by day, it's no surprise that right now millennials are the majority market. Gen Z consumers, who are those in their late-teens to early 20's, are steadily gaining on them though, with purchasing power scheduled to eventually shift within the next decade. Gen Z is expected to hold the biggest share in diamond consumption by 2025.
At this point in time, statistics showed that Russia still remains as the top producing country for diamonds- in terms of both carats and value. De Beers still remains as the largest supplier to the trade, but its share has dwindled down to around 34%. Other players like Alrosa have diluted the supposed 'monopoly major' and continue to create their own channels for diamond sales distribution around the world.
De Beers has also recently entered into the retail side of lab-grown diamonds, offering these man-made stones at a more affordable price rate to the public, separating them in product tier from its natural diamond collections.
