The global diamond business weakened again in 2025 as demand stayed soft, lower-priced laboratory-grown stones gained ground and geopolitical tensions rattled trade.
De Beers, the world’s biggest diamond miner, saw revenue slide, built up about $2 billion (C$2.7 billion) in unsold natural stones and said it would cut more than 1,000 jobs across major operations as markets slowed. The move came as parent Anglo American (LSE: AAL) pressed ahead with plans to sell De Beers.
Other producers struggled too. Russia’s Alrosa saw profit plunge nearly 80% and idled activity at key sites, helping it preserve cash and finish the year in better shape than some had feared. Smaller miners entered administration or shut mines.
Lab-grown diamonds – chemically and visually identical to mined stones – continued to reshape buying habits and undercut prices for natural gems. They now account for a growing share of engagement ring sales, forcing industry leaders to defend the value proposition for mined diamonds.
Market reset
The rapid rise of lab-grown stones has already prompted strategic shifts. De Beers shut its Lightbox lab-grown jewellery brand and refocused marketing on natural diamonds.
Governments and industry bodies have moved to shore up the mined-diamond sector. Under the Luanda Accord, producers including Botswana and Angola pledged to dedicate 1% of annual diamond revenues to a global marketing campaign aimed at reviving demand for natural stones.
Botswana, Africa’s leading natural diamond exporter, has felt the downturn sharply. Falling sales have driven production cuts, higher unemployment and rising fiscal strain in an economy heavily dependent on diamond income.
Debswana, the state-owned venture with De Beers, said it would reduce output by as much as 40% in 2025, reflecting weak demand and sustained price pressure from lab-grown alternatives.
Next chapter
Analysts link the market’s fractures to shifting consumer preferences, swelling lab-grown supply and a luxury slowdown in China, once a key driver of diamond growth.
Even with signs lab-grown prices have softened, potentially narrowing their appeal, executives say rebuilding confidence in natural stones will take sustained branding and tighter coordination across the sector.
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