4 Takeaways from the DeBeers Insight Report

I'm a diamond geek, and I'm always excited to read DeBeers Insight Reports and the Bain/AWDC Diamond Industry Reports. There's a treasure trove of data to better understand the industry and it's trends.

DeBeers recently released their annual insight report, and it’s interesting to see their perspective. This 2023 focus was on China, but I picked up 4 key trends.

• The US is the largest market for polished diamonds and is returning to old form with 53% of global market share.

• Branded jewelry sales were strong through 2022, with many brands reporting 18%+ increases. I believe this indicates strength in the hi-end, luxury segment. Plan to capitalize on this market during the holidays.  

• High midstream inventories are a near term concern. Retailers have ample inventory, due to declines in US disposable income and slower Chinese demand. DeBeers anticipates trading conditions to recover in the medium term.

• Notably, DeBeers did not discuss demand destruction from the LGD sector. In my observation, segments of the natural industry have been cannibalized -- most notably, smaller and/or imperfect segments of the industry.