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The next phase of growth for the global diamond industry may depend less on engagement rings and more on younger consumers celebrating personal milestones, as shifting buying habits and tightening supplies of natural diamonds reshape the luxury jewelry market, according to new research released Monday by De Beers Group.
The world’s largest diamond producer by value said its latest survey of 18,500 U.S. women points to a structural shift in consumer behavior that could redefine how diamonds are marketed, sold and priced over the coming decade.
The biggest change is not who is buying diamonds, but why.
While engagements and weddings remain the industry’s largest revenue source, nearly three-fourths of natural diamond purchases in the United States now occur outside bridal occasions. Consumers are increasingly buying diamonds to celebrate promotions, career achievements, birthdays and personal milestones, signaling a move toward self-purchasing and occasion-based luxury spending.
That evolution is being driven largely by Generation Z.
Although Gen Z represents just 18% of the U.S. population, it now accounts for 23% of natural diamond demand by value, making it the industry’s second-largest customer group. The generation also spends nearly twice as much per purchase as Baby Boomers, averaging $4,080 per natural diamond compared with $2,250.
Unlike previous generations, Gen Z consumers are buying diamonds more frequently, purchasing or receiving them an average of 1.83 times a year. Birthdays, gifts from relatives and personal achievements are playing a much larger role than they have historically, while social media has become the primary influence on buying decisions.
For an industry that has long relied on bridal jewelry to drive growth, the findings suggest future demand may become more diversified—and potentially more resilient.
The study also found that natural diamonds remain the most coveted luxury jewelry product among American consumers. Eleven percent of respondents ranked natural diamond jewelry as their most desired luxury gift, ahead of lab-grown diamonds, colored gemstones and gold jewelry.
Consumers are also spending more.
Average spending on natural diamond jewelry climbed 25% over the past two years to $4,063 per piece in 2025, driven by purchases of larger stones. Average carat weight increased to 1.86 carats from 1.65 carats in 2023, suggesting buyers remain willing to pay more for premium natural diamonds despite broader economic uncertainty.
At the same time, De Beers believes the competitive threat from lab-grown diamonds is beginning to change.
Point-of-sale data from 950 independent U.S. jewelers showed natural diamond sales rose 4% year over year in the fourth quarter of 2025 and accelerated to 9% in the first quarter of 2026. Lower-color natural diamonds marketed under De Beers’ “Desert Diamonds” campaign recorded even stronger growth.
Lab-grown diamonds continue to gain market share by volume, but rapidly falling prices are eroding their contribution to retailers’ revenues. They accounted for only 15% of independent jewelers’ diamond sales by value in 2025, compared with 85% for natural diamonds.
Retailers are also finding it increasingly difficult to sell larger synthetic stones, with demand falling sharply beyond three carats. If prices continue their multiyear decline, De Beers expects jewelers to increasingly position lab-grown diamonds as fashion accessories while emphasizing the rarity, investment appeal and emotional significance of natural diamonds.
“The diamond industry is evolving at pace with both supply- and demand-side dynamics shaping its future,” said Eirik Wærness, De Beers’ chief economist and executive vice president for corporate affairs and strategy.
He said declining global production of natural diamonds should improve supply-demand fundamentals over the next several years, while resilient U.S. consumer spending and stabilizing demand in China have already helped return global natural diamond demand to growth.
For miners, retailers and luxury brands, the findings point to an industry entering a transition rather than a recovery. Future growth is likely to depend on attracting younger buyers, expanding beyond traditional bridal jewelry and reinforcing the premium positioning of natural diamonds in an increasingly price-driven marketplace.
If those trends continue, the next diamond boom may be fueled less by wedding proposals than by consumers choosing to celebrate themselves.
