Renewed demand for natural diamonds among U.S. consumers is providing a potential lifeline to Africa’s diamond-producing nations after several challenging years marked by weak demand and growing competition from lab-grown stones.
A new consumer survey by De Beers shows that Generation Z has emerged as the fastest-growing segment of the U.S. natural diamond market. Although people born between 1997 and 2012 account for just 18% of the U.S. population, they now represent 23% of natural diamond demand by value.
The findings come from De Beers’ latest U.S. Diamond Acquisition Study, which surveyed more than 18,500 women across the United States, the world's largest diamond jewelry market.
According to the report, Gen Z consumers spend an average of $4,080 per natural diamond jewelry purchase, significantly higher than the $2,250 average spent by Baby Boomers.
The survey also found that 11% of respondents ranked natural diamond jewelry as their most desired luxury gift, compared with 8% for lab-grown diamonds, 5% for colored gemstones and 4% for plain gold jewelry.
De Beers said natural diamonds continue to occupy a unique position in consumers’ minds as meaningful, aspirational purchases, with younger buyers increasingly associating them with personal achievements rather than only traditional life events.
Demand Expands Beyond Weddings
The report found that younger consumers are increasingly purchasing natural diamonds to celebrate promotions, career milestones, birthdays and other personal accomplishments, in addition to engagements and weddings.
While bridal jewelry still accounts for about 45% of Gen Z’s natural diamond purchases, the broader range of buying occasions has helped expand overall demand.
As a result, the average price of a natural diamond jewelry purchase increased by 25% to $4,063 in 2025, up from $3,242 in 2023. Average diamond sizes also rose to 1.86 carats from 1.65 carats over the same period.
"Consumers are spending more per piece than ever before, but how and why consumers buy diamonds is evolving," said Diana Mitkov, Lead Researcher for Diamond Demand Insights & Analytics at De Beers Group.
She said traditional milestones such as engagements are no longer the industry's only growth driver, as consumers increasingly purchase natural diamonds to commemorate a wider range of personal achievements.
Positive Outlook for African Producers
The renewed demand could provide welcome support for major African diamond-producing countries, including Botswana, Angola, Namibia, South Africa and Lesotho, where diamond mining remains a key source of export earnings, government revenue and employment.
Botswana, in particular, has faced slower economic growth in recent years as weaker global diamond demand reduced export revenues and pressured public finances.
Despite increased competition from lab-grown diamonds, De Beers said natural stones continue to dominate the premium segment of the U.S. market.
Data from approximately 950 independent U.S. jewelers showed that natural diamonds accounted for 85% of diamond jewelry sales by value in 2025, compared with 15% for lab-grown diamonds.
Tight Supply May Support the Market
Industry analysts also expect constrained global supply to provide additional support for natural diamond prices over the coming years as existing mines mature and relatively few large-scale new mining projects enter production.
Independent diamond analyst Paul Zimnisky said natural diamond demand has declined sharply over the past four years because of a combination of economic and industry-specific factors. However, he said there are early signs that the rough diamond market is beginning to stabilize.
"I see the fad around laboratory-grown diamonds starting to wear a bit," Zimnisky said. "Everyone seems to have a top-quality 3-, 4- or 5-carat lab diamond and everyone now knows it's not a natural stone. I think the product has become a little too ubiquitous and people are starting to want the real thing again."
Zimnisky estimates global natural diamond production will decline to around 90 million carats this year, the lowest level since 1987, compared with more than 150 million carats only a few years ago.
Industry Shifts Its Marketing Strategy
To strengthen its appeal among younger consumers, De Beers and Signet launched the "Worth the Wait" campaign in October 2024, focusing on individuality, personal milestones and the enduring value of natural diamonds.
In June 2025, De Beers and a coalition of African diamond-producing countries also signed the Luanda Accord, committing 1% of rough diamond revenues to a global marketing fund managed by the Natural Diamond Council.
The initiative supports consumer education campaigns and retailer training programs designed to reinforce the value proposition of natural diamonds.
Sustainability Remains a Key Challenge
Despite improving demand, the natural diamond industry continues to face growing pressure from younger consumers who increasingly expect products to demonstrate ethical sourcing, environmental responsibility and transparent supply chains.
Jewelry company Pandora switched entirely to lab-grown diamonds in 2021, citing sustainability considerations alongside lower production costs.
Even so, the latest findings suggest natural diamonds continue to hold strong emotional and symbolic value for consumers. Industry leaders believe future growth will depend not only on rarity and craftsmanship, but also on demonstrating responsible mining practices and delivering tangible economic benefits to the communities where diamonds are produced.
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