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This report aims to provide an annual perspective
on the global diamond industry, drawing on The
De Beers Group of Companies’ extensive proprietary
data and insight as well as other industry sources.
The report is divided into three sections: Section 1
provides an outlook for the global diamond industry;
Section 2 describes the 2013 performance and key
trends to watch in each part of the diamond industry
value chain; and Section 3 highlights three ‘In Focus’
areas of particular importance to the industry. This
year’s report focuses on the changing consumer
preferences in the world’s largest and fastest-growing
diamond jewellery markets, the US and China; on
how technology is helping to safeguard the industry;
and on the miracle of production, showcasing
challenges and innovation in rough diamond mining.
SECTION 1: DIAMOND INDUSTRY OUTLOOK
In contrast with precious metals and other natural
resources industries, which rely on multiple sources
of demand, the diamond industry derives practically
all its value from consumers’ demand for diamond
jewellery. The outlook for the industry is thus
intrinsically linked to consumer demand. Even under
scenarios of volatile or weaker global economic
growth, demand for diamonds is expected to
show positive real growth in the next decade.
Positive demand growth for diamonds will almost
certainly outstrip growth in carat production, given
the lack of major new discoveries in the last decade
and the projected slowdown in several existing mines.
Across the value chain, companies that are able to
innovate and differentiate themselves will be best
positioned to capture the opportunities created
by this supply demand dynamic.
Relentless focus on two main areas will help the
industry to achieve its full growth potential over
the coming years:
The first is
safeguarding and nurturing the diamond
dream
– that is, the allure that diamonds have for
consumers, based on their association with romance
and a sense of the eternal, and the fact that they
are seen as a lasting source of value. As always,
changing consumer preferences, competition from
other luxury categories, and – among other risks
– the potential confusion caused by undisclosed
synthetics all pose challenges for the entire industry.
The second is for companies across the whole value
chain to
innovate and differentiate
, to take full
advantage of opportunities created by the expected
growth in demand.
EXECUT I VE
SUMMARY