De Beers, the iconic diamond company, has announced the suspension of its lab-grown diamond experiment after six years. The decision comes as De Beers plans to focus on traditional, mined diamonds, citing the luxury nature and romantic aspect of real gems as key selling points.
The move to discontinue lab-grown diamonds follows a decline in profits, with De Beers experiencing a 35% decrease in total revenue in 2024 compared to the previous year. This decline can be attributed in part to waning demand for diamonds in key consumer markets like China and the US, where factors such as declining marriage rates and economic uncertainty have impacted consumer spending.
However, the decision to shift back to mined diamonds may not align with changing consumer behaviors, particularly among younger demographics who prioritize ethical and sustainable practices in their purchasing decisions. Lab-grown diamonds, which are often more affordable and traceable, have gained popularity among consumers looking for alternatives to traditional mined diamonds.
De Beers’ strategy to invest in prolonging the lifespan of its flagship mines in Botswana and South Africa may not be sustainable in the long run, as consumer preferences and market dynamics continue to evolve. The shift towards lab-grown diamonds reflects a larger trend in the industry towards transparency and ethical sourcing.
While De Beers’ iconic marketing campaigns have defined the diamond industry for decades, the company’s decision to suspend lab-grown diamonds signals a recognition of the changing landscape and the need to adapt to meet evolving consumer demands. As the industry continues to evolve, the future of diamonds may indeed be forever, but in a different form than we have known before.
