De Beers Cuts Sightholders to 50 as Diamond Industry Faces Weak Demand, Lab-Grown Competition and Market Volatility
Global diamond producer De Beers Group has made one of the deepest reductions to its network of handpicked diamond buyers as the company navigates a prolonged downturn affecting the global diamond industry, according to people familiar with the matter.
The company notified its customers known as sightholders on Friday whether they would retain their status through formal letters and follow-up calls, the sources said, requesting anonymity due to the confidential nature of the discussions.
The number of approved buyers has been reduced to between 45 and 50, down from approximately 70.
De Beers declined to comment on the changes.
The restructuring has been under consideration for some time but was repeatedly delayed as the industry faced a series of market disruptions.
A key objective of the move is to concentrate supply among the company’s strongest clients at a time when production volumes have declined.
The global diamond industry, estimated to be worth about $80 billion, remains under significant pressure.
A post-pandemic demand slowdown has been compounded by reduced luxury spending in China, the growing popularity of lab-grown diamonds and ongoing geopolitical and trade uncertainties.
Production at De Beers fell to fewer than 22 million carats last year, compared with nearly 35 million carats in 2022, as the company sought to stabilise prices by limiting supply.
While some market participants report early signs of recovery as inventories of certain diamond categories begin to tighten, the company’s parent, Anglo American, is pursuing a potential sale of the business and has written down its value multiple times in recent years.
Pressure on the Traditional Sales System
De Beers’ long-standing sales model has historically relied on a select group of authorised buyers, including family-owned businesses in India and Israel, as well as subsidiaries of major jewellery retailers such as Tiffany & Co..
Under this system, De Beers sells rough diamonds through a series of scheduled sales events each year, with sightholders expected to accept the quantities and prices offered.
Declining allocations can result in reduced future supply or the loss of purchasing privileges.
However, the model has come under increasing strain. During much of 2024 and 2025, official prices set by De Beers remained significantly higher than those in the secondary market, where cutters and polishers trade independently.
Rather than sharply reducing benchmark prices, the company reportedly offered selective discounts of up to 20% to certain customers a departure from its traditional pricing discipline.
While supporters argue that the approach helped maintain market stability and prioritise reliable buyers, critics say the lack of transparency created tensions within the customer base, particularly among buyers who could source similar diamonds at lower prices in open markets.
The reduction in the number of sightholders is expected to take effect on July 1, marking the start of a new contract period.
Buyers specialising in smaller diamonds a segment where prices have fallen most sharply and where De Beers has less market control are reported to be among those most affected by the cuts.
