India’s diamond market to double in five years, says De Beers Group Global CEO

India's diamond market, which is estimated at under $10 billion currently, is likely to double in five years on rising demand in Asia's third-largest economy, global chief executive officer (CEO) of De Beers Group Al Cook said on Thursday.

De Beers Group is a South African–British company that specializes in all aspects of the diamond industry, including mining, trading, retail and manufacturing.

“In India, we have seen double-digit growth for the last few years. And we actually see natural diamond demand in India doubling over the next five years,” Cook, who is on his inaugural visit to India, said at a press conference in Mumbai.

Also Read | India beats China to become second largest diamond market; Chinese luxury segment loses shine, says De Beers CEO

Talking about the world's four key regions for diamond consumption, he said there has been a substantial decline in China, and it would take quite a long time to recover, given the economic challenges there. In the US, the market has been stable over the last year with some growth in recent months, and De Beers will focus many of its marketing campaigns there to boost demand. 

The Middle East, meanwhile, continues to show strong and sustained growth, he added.

In terms of revenue contribution from India, Cook said that around 90% of the world's diamonds come through India. But India also gets tremendous value from all the diamonds that are exported to the US and many other countries. He highlighted that India overtook China about a year ago and is now the second-largest diamond market for De Beers after the US, and is growing very strongly. “So we expect that to increase as well going forward,” he said.

Also Read | De Beers Has the Diamond. Could It Find a Bride?

Meanwhile, De Beers India’s managing director Amit Pratihari said the company’s expansion plans are well on track, with four new stores set to open this year–two in Mumbai and two in Delhi.

That makes India a critically important market for the diamond industry.

Cook said, he met India's commerce minister Piyush Goyal just a few days ago, to discuss that diamonds should flow freely around the world, without restrictions or tariffs. He has been in the US recently, continuing negotiations on the US–India trade agreement, and this is incredibly important for the diamond industry, as 90% of the world’s diamonds are processed in India. A strong trade deal between the two countries would be a major step forward for the global diamond sector.

Meanwhile, earlier this year, Mint had reported that De Beers stepped up marketing efforts in India, partnering with retailers and launching campaigns to promote natural diamonds in the hope of countering both the general slump in consumer demand and the growing popularity of lab grown diamonds (LGDs).

Also Read | De Beers India plans record marketing spends to help natural diamonds shine on

To be sure, India’s diamond market is estimated at $6.2 billion in FY25, while lab-grown diamonds represent a smaller $0.4 billion, according to Wazir Advisors. It estimates that both markets will grow by 2028, reaching $8.6 billion for natural diamonds and $0.6 billion for lab-grown diamonds.

The company plans to spend record sums this year on marketing natural diamonds in India.

Moreover, it has also been strengthening partnerships with local retailers in the country. In 2023, local jewellery retailer Tanishq and De Beers Group announced a three-year collaboration to boost sales of natural diamonds at Tanishq stores. Earlier this year, De Beers Group partnered the Gem and Jewellery Export Promotion Council (GJEPC), a jewellery trade body, to promote natural diamond sales in India by helping small, independent retailers. The penetration of natural diamonds in India is currently around 10%, well below the rate in mature jewellery markets such as the US.

Natural diamonds are facing competition from LGDs, or synthetic diamonds, due to their lower cost, ethical sourcing, and environmental benefits. Advances in technology have made them nearly identical to natural diamonds, appealing to consumers seeking more sustainable and affordable options.

“LGD prices in the jewellery sector have fallen 90% at wholesale, tracking closer to a cost-plus model as they have diverged from natural diamond prices,” Cook said. He emphasized that De Beers Group envisions the long-term commercial potential of LGDs primarily in high-tech industrial applications, which aligns with its decision to close the Lightbox LGD jewellery brand.