AWDC & Bain & C° Release 11th Global Diamond Report: A Brilliant Recovery Shapes Up

In ‘A Brilliant Recovery Shapes Up, the Antwerp World Diamond Centre (AWDC) and leading consultancy agency Bain & Company look at the pandemic’s effects, the industry’s impressive recovery, and the possibilities ahead.

A Resilient Industry, Well-Positioned For The Future

The diamond industry proves its resilience, by delivering excellent figures in every segment of the pipeline in 2021, and well-positioned for the future. In the past two covid-years, the industry invested heavily in technology to gain operational efficiency, create marketing and consumer experiences that attracted buyers, and accelerate e-commerce schemes.

Strong Demand Drove Up Prices and Profit Margins Along the Value Chain

Demand for diamonds was strong throughout 2021, especially in H2 2021. Strong retail demand for diamond jewelry drove up prices and profit margins along the value chain. As rough diamond sales increased, miners increased production volumes and pulled from inventories to keep cutters and polishers busy. Healthy demand and price recovery for polished diamonds helped the midstream achieve decade-high margins.

Consumers Were Ready To Spend

Because of customers’ desire for emotional gifting in difficult times, increased savings, limited availability of experience-based substitutes, and restricted travel boosted diamond jewelry purchasing, in 2021, the diamond jewelry market experienced a decade-high growth of +29%.

What Does The Future Hold?

AWDC and Bain & C° expect the diamond market will be strong throughout the first half of 2022, supporting growth across all segments. After that, two possible scenarios emerge: “continued rebound” and “short-term readjustment”.

In the continued rebound scenario, diamond jewelry sales are expected to continue to flourish, creating strong demand and continued growth which will benefit players throughout the value chain.

The short-term readjustment scenario implies a possible slight correction in diamond jewelry demand starting toward the end of 2022 and the beginning of 2023, with a gradual return to pre-pandemic trend levels and growth rates in 2024—similar to how the diamond market strongly rebounded and then readjusted to its historic trajectory during past recessions.