PRESS RELEASE
Diamond Cutting and Polishing Market Shines Bright with Technological Innovation and Rising Demand from the Luxury Jewelry Sector
According to the research report, the global diamond cutting and polishing market was valued at USD 21.26 billion in 2022 and is expected to reach USD 29.85 billion by 2030, to grow at a CAGR of 3.5% during the forecast period.
The art and science of transforming rough diamonds into brilliant, market-ready gems is a vital aspect of the global diamond value chain. With consumer preferences shifting toward ethically sourced, high-quality stones and personalized luxury, the diamond cutting and polishing industry is leveraging technology and skill to meet evolving market needs.
As emerging markets expand their middle-class consumer base and established luxury markets continue to thrive, manufacturers, traders, and jewelers are investing in better diamond grading systems and innovative cutting techniques that maximize both aesthetic appeal and market value.
Market Overview
Diamond cutting and polishing is a multi-stage process involving planning, cleaving or sawing, bruting, polishing, and final inspection. These processes not only enhance the visual brilliance and fire of a diamond but also significantly affect its market price. Advances in precision cutting technology, such as laser cutting and computer-aided design (CAD), have revolutionized the industry by improving efficiency, reducing material waste, and increasing yield from rough stones.
Consumers today are increasingly aware of factors like cut quality, clarity, and ethical sourcing, making diamond grading standards more important than ever. Grading bodies like the Gemological Institute of America (GIA) and International Gemological Institute (IGI) provide certifications that impact the value and trust in diamonds across the supply chain.
As sustainability and transparency take center stage, many players are adopting traceable supply chain systems and integrating technology to meet consumer expectations—particularly in the high-end luxury jewelry sector.
Market Segmentation
The Diamond Cutting and Polishing Market is segmented by process type, technology, application, and region.
By Process Type:
- Cutting
- Polishing
- Bruting
- Cleaving
- Final Grading & Quality Check
Among these, cutting is the most crucial and value-adding process, often requiring high-skill labor and advanced machinery. Polishing follows closely, as it determines the final appearance and light performance of the diamond.
By Technology:
- Manual/Traditional Techniques
- Automated Cutting Tools
- Laser Cutting Machines
- CAD/CAM-Based Processing
- Robotic Arms and AI Systems
Laser cutting and CAD-based processing are gaining prominence due to their ability to enhance precision, reduce human error, and maximize stone value. Integration of precision cutting technology enables manufacturers to cater to custom design demands with high accuracy.
By Application:
- Jewelry Manufacturing
- Investment-Grade Diamonds
- Industrial Use (e.g., Cutting Tools, Electronics)
- Custom/Luxury Craftsmanship
The jewelry manufacturing segment holds the largest market share, driven by demand from the luxury jewelry sector. However, investment-grade diamonds are gaining attention, particularly in Asia-Pacific and Europe, where high-net-worth individuals are diversifying their asset portfolios.
Regional Analysis
North America
North America, particularly the United States, continues to be a stronghold for the diamond cutting and polishing market. The region benefits from a mature luxury jewelry sector, tech-savvy consumers, and stringent diamond grading standards. High demand for custom-designed engagement rings and fine jewelry fuels the need for expert polishing and certification services.
Europe
Europe has a long-standing heritage in the diamond trade, with Belgium (particularly Antwerp) serving as a global hub for diamond processing and trading. The presence of globally recognized grading institutions and access to highly skilled labor continues to bolster the region’s market share. High-end markets in France, Switzerland, and the UK contribute significantly to demand.
Asia-Pacific
Asia-Pacific is the fastest-growing region, driven by increasing consumer spending, rapid urbanization, and expanding middle-class populations in countries such as India and China. India, in particular, dominates the global gemstone processing industry, accounting for a significant share of diamond cutting and polishing activities globally. China’s growing appetite for luxury jewelry is also playing a pivotal role in the market’s expansion.
Middle East & Africa
Africa, especially countries like Botswana and South Africa, remains a key supplier of rough diamonds. While most cutting and polishing are outsourced, local governments are increasingly promoting in-country beneficiation programs to boost value-added processing. The Middle East, led by the UAE and Saudi Arabia, is witnessing a surge in luxury retail, boosting regional demand for premium-cut diamonds.
Latin America
Brazil and Colombia are emerging markets for both diamond exploration and niche jewelry markets. Though not yet major players in diamond processing, the region holds potential for future growth as the global diamond industry seeks to diversify its supply chains and processing centers.
Market Drivers
- Rising Demand for Luxury Jewelry: The global increase in spending on high-end jewelry continues to be a key driver, with personalized and branded diamond pieces commanding premium pricing.
- Technological Advancements: The use of laser cutting and AI-driven design is improving precision, reducing waste, and enabling mass customization.
- Ethical and Sustainable Sourcing: Consumer demand for conflict-free and traceable diamonds is pushing companies to adopt transparent gemstone processing practices.
- Growth in Emerging Economies: Increased disposable income and aspirational lifestyles in Asia-Pacific and Africa are accelerating demand for polished diamonds.
- Expansion of Online Jewelry Retail: Digital platforms offer wider reach and greater demand predictability, requiring scalable and efficient diamond processing operations.
Challenges
While the market outlook remains positive, several challenges persist:
- Skilled Labor Shortage: Precision cutting still requires skilled artisans, especially in high-end custom segments, and a shortage of experienced labor can hamper production timelines.
- Price Volatility of Rough Diamonds: Fluctuating prices in the raw material market impact processing costs and margins.
- Stringent Quality Standards: Global buyers demand high-level certifications and compliance with grading systems, putting pressure on processing firms to invest in training and equipment.
- Synthetic Diamond Market Growth: The rise of lab-grown diamonds poses a challenge to the natural diamond market, especially in price-sensitive segments.
Key Companies in the Diamond Cutting and Polishing Market
The global landscape features a mix of legacy diamond houses and technologically advanced processing firms. Notable companies include:
- De Beers Group: A global leader in the diamond industry, De Beers operates both mining and cutting divisions, and has expanded its reach into synthetic diamonds and ethical sourcing initiatives.
- ALROSA: The Russian diamond giant is known for vertical integration, handling everything from mining to sorting, grading, and processing.
- Rosy Blue: With global cutting and polishing centers, Rosy Blue supplies premium diamonds to some of the world’s leading jewelry brands.
- Diacore: Specializes in crafting exceptional stones for investment and bespoke luxury jewelry, using state-of-the-art precision cutting technology.
- KGK Group: Headquartered in India, KGK has a strong presence in rough sourcing, gemstone processing, and high-volume cutting and polishing.
- Chow Tai Fook Jewellery Group: One of Asia’s largest jewelry retailers, the company also invests heavily in its own diamond processing infrastructure.
- Shree Ramkrishna Exports (SRK): An Indian-based cutting and polishing company known for innovation, sustainability practices, and digital integration across their operations.
Recent Developments
- In 2024, De Beers launched Tracr™, a blockchain-powered traceability platform, enabling full transparency of diamond provenance from mine to retail.
- SRK Exports announced the deployment of AI-powered robotic cutters, reducing labor time and improving polishing accuracy for fancy-cut diamonds.
- Rosy Blue expanded its facilities in Botswana to support local beneficiation programs and create employment opportunities within Africa’s diamond-producing regions.
Future Outlook
As technology reshapes the traditional diamond processing landscape, the industry stands at the cusp of a new era. The convergence of digital tools, automation, and consumer demand for traceable luxury goods is poised to revolutionize the diamond cutting and polishing market.
Companies that embrace innovation while upholding the craftsmanship and integrity of the trade will continue to shine in a market that values both heritage and modernity.
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