De Beers Group, the world’s leading diamond producer, is navigating turbulent market conditions as it contends with its largest diamond stockpile since the 2008 financial crisis, valued at approximately $2 billion. A combination of economic uncertainty, competition from lab-grown diamonds, and subdued consumer demand, particularly in China, has led to a slowdown in rough diamond sales.

In response, De Beers has reduced diamond production by 20% compared to 2023 levels and implemented price cuts during recent sales events to move inventory. These actions aim to balance supply with declining demand while maintaining its position in a competitive market. Looking forward, De Beers’ parent company, Anglo American, is preparing to spin off the diamond giant as a separate entity.

Ahead of this transition, De Beers is ramping up its marketing efforts with a global campaign promoting natural diamonds and plans to expand its retail presence from 40 to 100 stores.

Despite current challenges, CEO Al Cook remains optimistic about the future, citing signs of recovery in the U.S. jewellery market and an anticipated rebound in global demand by 2025. As the industry continues to evolve, De Beers’ strategic adjustments highlight the pressures and opportunities facing natural diamond producers in today’s market.