Global Diamond Industry Sees Renewed Spark in 2025: Rising Demand in India

After facing headwinds through 2023 and 2024 following a period of strong growth in 2022, the global diamond industry is witnessing signs of revival in 2025, buoyed by improving demand and renewed market optimism.

Industry Leaders Reflect on Market Cycles

Susan Jacques, President and CEO of the Gemological Institute of America (GIA), acknowledged the recent challenges faced by the gem and jewellery sector. She described the 2021 surge—fueled by post-pandemic shifts in consumer behaviour, including limited travel and heightened luxury spending—as an outlier. The subsequent correction, she noted, was a natural part of the market cycle.

Now, with demand stabilizing and sentiment improving, key global markets are showing early signs of a rebound.

India Emerges as a Growth Driver

A key contributor to this recovery is India, whose deep-rooted cultural affinity for diamonds has driven consistent growth in demand. Jacques noted that India's global share of natural diamond consumption has expanded dramatically—from just 2% two decades ago to nearly 11% today. This makes India the second-largest market for natural diamonds, trailing only the United States, which still commands approximately 55% of global sales.

US Market Remains Resilient

According to Pritesh Patel, GIA's Senior Vice President and Chief Operating Officer, the US market has remained stable in the first half of 2025, with industry stakeholders optimistic about sustaining this momentum through the rest of the year.

Also Read: Best Jewellery Stocks in India for July 2025- Sky Gold and Diamonds, Goldiam International, and Others

Rising Demand Across India’s Smaller Cities

In India, Patel observed a broadening of consumer demand beyond metropolitan hubs. Tier-2 and tier-3 cities are showing a notable increase in diamond jewellery purchases, contributing significantly to overall market growth.

He added that this trend is evident across multiple regions—including the southern, northern, and western parts of the country—where consumer interest in diamonds is clearly gaining traction.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.