Younger Generations are Re-Valuing Natural Diamonds: A Strategic Inflection Point for the Industry

The Natural Diamond Industry is Entering a Pivotal Transformation Driven by Millennials and Gen Z - Who Increasingly View Natural Diamonds Not Merely as Heirlooms or Occasion Pieces, But as Meaningful Assets and Personal Statements

NEW YORK CITY, NEW YORK / ACCESS Newswire / November 13, 2025 / Ritani, the New York-based fine jewelry brand known for its handcrafted settings and transparent pricing, today announces a shift in generational natural diamond purchasing patterns.

Industry Snapshot

• The global diamond market was valued at US $41.49 billion in 2024 and is forecast to reach US $50.23 billion by 2030 (CAGR ~ 3.3%).

• Broader diamond sector forecasts show potential growth from US $97.57 billion in 2024 to US $138.66 billion by 2032 (CAGR ~ 4.5%).

• Natural diamond production has declined sharply - from more than 175 million carats in 2005-06 to roughly 121 million in 2023 - reflecting supply constraints and mine closures.

• Millennials and Gen Z are projected to represent nearly 75% of global luxury spending by 2026, fundamentally reshaping demand.

1. Production & Supply Trends in Natural Diamonds

Recent data reveals a critical dynamic shaping the natural diamond landscape.

• Production is slowing: Global natural diamond output fell approximately 8% year-over-year to ~111.5 million carats in 2024, and is forecast to grow less than 2% annually through 2027.

• Tighter supply is driving value: Despite reduced output, the average value per carat has risen ~15 % since 2019, reflecting market scarcity and growing consumer appreciation for rarity.

• Strategic implication: As production plateaus, natural diamonds' inherent scarcity strengthens their long-term appeal - especially to younger consumers who view authenticity and rarity as integral to perceived worth.

"As supply tightens, rarity drives renewed value perception among Millennials & Gen Z," says Ria Papasifakis, Chief Revenue Officer at Ritani.

2. Generational Jewelry & Diamond Demand Shifts

While supply tightens, demand is simultaneously being redefined by younger generations.

• Rising participation: 55% of Millennials and 64% of Gen Z buyers report purchasing jewelry in the past year, compared with 41% of Gen X.

• Expanding category share: Gen Z's portion of mined diamond jewelry purchases grew from 6% in 2021 to 17% in 2022.

• Motivations have evolved: Younger buyers are more likely to purchase diamonds for self-expression and self-reward rather than milestones. They value ethical sourcing, daily wearability, and versatility over tradition alone.

• Design implications: Stackable, unisex and minimalist natural diamond pieces are driving this shift, merging luxury with accessibility.

"Meaning, authenticity, and self-celebration are the new symbols of modern luxury," adds Papasifakis.

Why This Matters for the Industry

To sustain and grow relevance:

• Update assortments with approachable, ethically sourced natural diamond designs that reflect self-purchase behavior.

• Emphasize storytelling about provenance, craftsmanship, and long-term value.

• Reimagine retail - both online and offline - to empower personalization and transparency.

As production decreases and cultural value rises, natural diamonds stand at a crossroads: positioned not only as luxury artifacts, but as enduring emblems of individuality for the generations shaping the future of the luxury market.

SOURCE: Ritani

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