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This work was commissioned by AWDC and prepared
by Bain & Company and AWDC. It is based on secondary market
research, analysis of fnancial information available or provided
to Bain & Company and AWDC, and a range of interviews with
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The Global Diamond Report 2018
Page i
Contents
Note to readers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii
1. Recent developments in the diamond industry . . . . . . . . . . . . . . . . . . . . . . . . . 1
2. Rough diamond production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3. Cutting and polishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4. Diamond jewelry retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5. Key industry trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6. Recent developments in the lab-grown market . . . . . . . . . . . . . . . . . . . . . . . 23
7. Updated supply and demand model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Key contacts for this report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
The Global Diamond Report 2018
Page ii
Note to readers
Welcome to the eighth annual report on the global diamond industry prepared by the Antwerp World
Diamond Centre (AWDC) and Bain & Company. This year’s edition covers industry developments
in 2017 and the frst half of 2018 and takes a close look at key industry trends.
We begin with important developments along the value chain. In subsequent sections, we review
factors that infuenced rough diamond production and sales, midstream performance and global
diamond jewelry demand in major markets.
We also provide an update on the long-term outlook for the diamond industry through 2030.
The 2030 supply-demand forecast considers announced production plans, recent changes
in mining operations, potential additional sources of supply, expected changes in global
and regional macroeconomic parameters, and potential effects of lab-grown diamonds.
Readers looking for a brief overview of this report can fnd key points below:
Following a period of high volatility, 2017 was strong for the diamond industry, with
approximately 2% growth across all segments of the value chain. In 2018, revenues are expected
to grow again, even accelerating in the mining and jewelry retail segments. Volatility persisted
in 2018; the fnal outcome for the year will be determined by sales performance during
the holiday season.
Rough diamond mining companies delivered unprecedented production growth of nearly 20%
in volume in 2017. The production increase came mostly from mines with lower-quality
assortments. Mining company revenues grew by 2% overall, indicating a positive trajectory
for the second year in a row. In 2017, some major producers reported decreases in their EBIT
margins, mostly due to currency appreciation in production countries. However, mining
companies’ proftability bounced back in the frst half of 2018.
Midstream proftability remained positive with margins of about 1% to 3%. Assuming
the demand for diamond jewelry continues to rise through the end of 2018, overall proftability
of the cutting and polishing segment is expected to improve. Midstream inventories increased
in 2017–18, particularly in lower-quality and small-size assortments, as midstream players
prepared to ride another demand surge for those categories in 2018. India continued to grow its
leadership position in the cutting and polishing segment due to lower labor costs, a favorable
regulatory environment and relatively better access to fnancing. Even though fnancing
availability remains an issue in the midstream segment, transparent and fnancially healthy
companies report little impact on their ability to secure funding.
In line with positive luxury market trends, global diamond jewelry sales grew 2% in US dollar
terms in 2017, fueled by strong macroeconomic fundamentals in the US, resurging demand
from Chinese millennials, and increasing sales in the self-purchasing category in China.。