Botswana and De Beers launch a marketing campaign to boost demand for natural diamonds amid a downturn that has seen prices drop by 26% over two years. De Beers projects a sales decline, indicating ongoing market pressure. The initiative highlights the ethical significance of natural diamonds in response to the rise of lab-grown alternatives.
Botswana and De Beers have initiated a joint marketing strategy aimed at reviving demand for natural diamonds, responding to a significant market downturn where diamond prices fell by 26% in two years. Notably, prices for lab-grown diamonds have plummeted by 74% since 2020. This campaign will emphasize both ethical considerations and the symbolic value of natural diamonds, with both organizations co-investing based on their share of the Debswana diamond supply.
De Beers has reported declining sales figures, highlighting the industry’s challenges. In 2024, rough diamond sales dropped to a provisional $315 million from $383 million in the previous cycle, marking a continued decrease from $456 million in 2023. Although the company attributes this to the typical quieter summer season, experts suggest that these figures indicate an ongoing market struggle with demand recovery.
The diamond market is experiencing significant transformation due to changing consumer preferences and ethical concerns, with lab-grown diamonds emerging as alternatives. The sustainability debate surrounding these options has further contributed to declining interest in traditionally mined diamonds. The effectiveness of the joint marketing initiative remains uncertain, but it reflects an effort to support an industry vital to Botswana’s economy and De Beers’ global operations.
The joint marketing effort by Botswana and De Beers is a strategic response to declining diamond sales and growing competition from lab-grown alternatives. By emphasizing the ethical and symbolic value of natural diamonds, the campaign aims to restore consumer confidence and protect the long-term value of this vital sector. However, it remains to be seen if this initiative can effectively counter the broader market challenges that the diamond industry faces.
Original Source: www.bizcommunity.com
