July 5, 2024 — The global diamond market witnessed a significant downturn in 2023, with both production volume and value experiencing notable declines, according to the latest Kimberley Process Certification Scheme (KPCS) data.
Overall Market Trends
In 2023, total diamond production dropped by 7.6% to 111.52 million carats. The value of global diamond output saw a steep 20% decline, falling from $15.97 billion in 2022 to $12.72 billion in 2023. The average diamond value decreased to $114.1 per carat.
Country-Specific Insights
Russia:
Russia, one of the top diamond-producing countries, reported a decline in both volume and value. Production fell to 37.3 million carats, valued at $3.6 billion, from 41.9 million carats valued at $3.5 billion in the previous year.
Botswana:
Botswana saw a slight increase in production volume to 25.1 million carats in 2023. However, the value of these diamonds dropped significantly from $4.7 billion in 2022 to $3.3 billion in 2023.
Canada:
Canada, known for its high-quality diamonds, maintained a stable production volume of approximately 16 million carats between 2022 and 2023. Despite consistent production levels, the value of these diamonds decreased from $1.87 billion in 2022 to $1.54 billion in 2023, indicating market price fluctuations.
India’s Role in the Diamond Market
India continued to be a pivotal player in the diamond market as the highest importer of rough diamonds in both volume and value terms. In 2023, India imported 127.7 million carats of rough diamonds valued at $14.6 billion. Rough diamond exports from India in 2023 stood at 26.3 million carats worth $1.49 billion.
Namibia’s High-Value Diamonds
Namibia registered the highest average diamond value at $517.35 per carat, with a rough diamond output of 23.85 million carats valued at $1.23 billion.
Industry Implications
The decline in global diamond production and value underscores the challenges faced by the diamond industry, including fluctuating market prices and varying demand dynamics. The decrease in diamond values, despite consistent or increased production volumes in some countries, highlights the complex interplay of supply, demand, and market perception in the diamond sector.
As the industry navigates these challenges, stakeholders will need to adapt to changing market conditions to sustain growth and stability in the coming years.
