De Beers cuts Diamond prices in major strategy shift amid global market slump

By Editor

Global diamond producer De Beers has introduced one of the most significant official price reductions in its history, signalling a major strategic shift as the industry struggles with weak consumer demand, increased competition from laboratory-grown diamonds and a prolonged market slowdown.

The latest cuts were implemented during the company’s first sales cycle under a restructured customer model, marking what industry observers describe as the end of De Beers’ long-standing strategy of maintaining official prices well above prevailing market levels.

According to a report by Bloomberg, the move follows a sweeping overhaul of the company’s sales system, including a reduction in the number of approved buyers, known as sightholders, to focus sales on financially stronger customers with greater long-term purchasing capacity.

Market sources familiar with the latest sales said prices were reduced across almost every category of rough diamonds, bringing De Beers’ official pricing much closer to levels in the secondary market, where traders, manufacturers and polishers buy and sell rough stones.

For years, De Beers’ official prices were estimated to be between five and 50 per cent higher than secondary market prices, depending on the category of diamonds. The pricing gap increasingly squeezed profit margins for buyers as global jewellery demand weakened.

While the company has not disclosed the precise scale of the reductions, direct comparisons have become more difficult after De Beers introduced a one-line invoicing system earlier this year, replacing detailed pricing for individual assortments with a single invoice total. The company also modified the composition of several diamond assortments, further limiting like-for-like price analysis.

The pricing overhaul forms part of a broader restructuring programme as De Beers navigates one of the most challenging periods in the modern history of the diamond industry.

In March 2025, the company announced its exit from the laboratory-grown diamond segment after synthetic diamond prices plunged by as much as 90 per cent, driven largely by a surge in low-cost production from China.

As part of that strategy, De Beers began winding down its Lightbox Jewelry brand, which was launched in 2018 to market laboratory-grown diamonds as affordable fashion jewellery rather than premium gemstones.

The brand adopted a transparent pricing model of $800 per carat regardless of cut or clarity, reinforcing the distinction between synthetic and natural diamonds. The company also confirmed it was exploring the sale of Lightbox’s remaining assets, including inventory, as it exited the business.

The industry downturn has also intensified ownership changes surrounding De Beers.

Botswana, whose economy is heavily dependent on diamond mining, has been seeking greater control of the company. In September 2025, President Duma Boko announced the government’s intention to conclude a deal to acquire control of De Beers, describing the move as essential to the country’s economic sovereignty.

At the same time, Anglo American, which owns an 85 per cent stake in De Beers, has been pursuing the sale of the business as part of a broader corporate restructuring initiated after successfully fending off a takeover approach from BHP in 2024.

Reports in June also identified former De Beers Chief Executive Gareth Penny as a leading contender to acquire the iconic diamond producer.

However, the proposed divestment has been complicated by the sustained weakness in the global diamond market, while Botswana continues to push for a larger ownership stake in a company that remains central to its economy and the international diamond trade.

The latest pricing decision underscores the mounting pressure on the natural diamond industry as producers adjust to changing consumer preferences, softer luxury spending and the rapid rise of lower-cost synthetic alternatives. De Beers’ willingness to align its official prices more closely with market realities could reshape trading dynamics across the global diamond value chain and influence pricing strategies adopted by other major producers.