Gen Z Drives US Natural Diamond Demand Recovery, Boosting Outlook for African Producers
American consumers are showing renewed interest in natural diamonds, signaling a potential recovery for Africa’s diamond-producing nations after several challenging years marked by weakening prices and rising competition from lab-grown alternatives.
According to De Beers’ latest US Diamond Acquisition Study, Generation Z consumers born between 1997 and 2012 is playing a central role in the resurgence.
Although they represent 18% of the US population, Gen Z accounts for 23% of natural diamond demand by value.
The study, which surveyed 18,500 women in the United States the world’s largest diamond jewellery market found that Gen Z buyers spend an average of $4,080 per purchase, significantly higher than the $2,250 average spent by Baby Boomers.
It also revealed that 11% of respondents rank natural diamond jewellery as their most desired luxury gift, ahead of lab-grown diamonds at 8%, coloured gemstones at 5%, and plain gold jewellery at 4%.
De Beers noted that natural diamonds continue to hold a strong emotional and aspirational appeal, particularly among younger consumers who increasingly associate purchases with personal milestones and achievements.
Shifting Consumer Behaviour
While engagement and wedding jewellery remain important, accounting for around 45% of Gen Z diamond demand, younger consumers are increasingly purchasing diamonds for non-traditional occasions such as career milestones, promotions, birthdays, and self-reward purchases.
This shift has contributed to higher spending per purchase, with average natural diamond jewellery prices rising 25% to $4,063 from $3,242 in 2023.
Average stone sizes have also increased to 1.86 carats from 1.65 carats over the same period.
According to Diana Mitkov, lead researcher in Diamond Demand Insights & Analytics at De Beers Group, consumer behaviour is evolving beyond traditional life events.
“Consumers are spending more per piece than ever before, but the reasons for purchasing diamonds are expanding,” she said. “Natural diamonds are increasingly being used to mark a wide range of personal milestones, with buyers seeking pieces that feel unique and meaningful.”
Implications for African Producers
The trend carries significant implications for African diamond-producing nations, including Botswana, Angola, Namibia, South Africa, and Lesotho, which collectively supply a large share of global natural diamonds.
These economies depend heavily on diamond exports for government revenue, employment, and foreign exchange earnings. However, they have faced sustained pressure in recent years due to weaker demand and rising competition from lab-grown diamonds.
Despite this, De Beers data suggests natural diamonds continue to dominate the higher-value segment of the market.
A survey of 950 independent US jewellers found that natural diamonds accounted for 85% of diamond jewellery sales value in 2025, compared with 15% for lab-grown stones.
Market Pressures and Industry Debate
The diamond industry has faced a complex environment shaped by shifting consumer preferences, macroeconomic pressures, and technological disruption.
Lab-grown diamonds have gained market share due to lower prices and growing accessibility, while mined diamond producers have struggled with price volatility.
Independent diamond analyst Paul Zimnisky noted that while De Beers’ data points to resilience in natural diamond demand, broader market trends suggest a more mixed picture, with supply and pricing dynamics still under pressure.
He estimated that global natural diamond supply is expected to decline to around 90 million carats this year, the lowest level since 1987 and significantly below the more than 150 million carats produced in recent years.
Zimnisky also suggested that early signs of price stabilisation may be emerging in the rough diamond market, potentially indicating the start of a longer-term recovery cycle.
Industry Response and Marketing Push
In response to changing consumer behaviour, the diamond industry has intensified efforts to reconnect with younger buyers. Campaigns such as “Worth the Wait,” launched by De Beers and Signet, focus on themes of individuality, milestones, and emotional value.
At the same time, producers and industry stakeholders are investing in broader promotional initiatives.
In 2024, diamond-producing countries and De Beers signed the Luanda Accord, committing 1% of rough diamond revenues to a marketing fund managed by the Natural Diamond Council.
The initiative supports global advertising, education, and retail training aimed at strengthening demand for natural diamonds.
While lab-grown diamonds continue to expand their presence in the market, particularly among price-sensitive consumers, natural diamonds remain strongly positioned in the premium segment, where rarity, symbolism, and perceived long-term value still matter.
The growing influence of Gen Z suggests that future demand will depend less on tradition alone and more on transparency, ethical sourcing, and emotional storytelling. For African producers, a sustained recovery in US demand could provide critical support after years of market volatility.
