In 2025, the diamond market in Europe is experiencing a complex and dynamic situation, influenced by multiple factors such as economic conditions, consumer preferences, and industry trends.
Market Size and Growth Projection
The European diamond market has shown certain growth potential. According to Cognitive Market Research, with a market value of USD 179,841.2 million in 2024, it is projected to expand at a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031. Europe accounted for a share of over 30% of the global market size of USD 53,952.36 million in 2024. By 2030, the market is expected to reach a projected revenue of USD 15,795.6 million. This growth is driven by various elements in the market.
Influencing Factors
Economic Factors
The overall economic situation in Europe has a significant impact on the diamond market. Although there are economic concerns, rising disposable income in some regions has increased consumers’ purchasing power for luxury items like diamonds. For example, in countries with stable economic growth, such as the United Kingdom, Germany, and France, consumers are more willing to invest in diamond jewelry. However, economic uncertainties in some parts of Europe may also cause consumers to be more cautious about high – value purchases.
Consumer Preferences
Consumer tastes are shifting, and diamonds remain a symbol of value, prestige, and love for European consumers. The demand for diamond jewelry is not only for traditional occasions like engagements and weddings but also for fashion statements. Moreover, there is a growing preference for sustainable and ethically sourced diamonds. With increasing awareness of environmental and social issues, consumers, especially in Scandinavian countries and among the 6 million luxury consumers in the UK, Germany, and France, are favoring diamonds certified as conflict – free or lab – grown.
Marketing and Retail Advancements
Advancements in marketing tactics, such as internet retailing and experiential buying, have made diamond jewelry more widely available and appealing to a broader range of consumers. Online platforms have provided more convenient ways for consumers to browse and purchase diamond products, while experiential marketing events in physical stores enhance the shopping experience, attracting more customers to the diamond market.
Market Segmentation
By Application
- Jewelry & Ornaments: This segment holds the dominant market share in the European diamond market. The European market’s affinity for luxury goods, especially engagement rings and fashion accessories, drives the demand. High – net – worth individuals and luxury brands play a crucial role. For instance, luxury jewelry houses in Italy and France, known for their exquisite designs, contribute significantly to the sales of diamond – adorned jewelry. The sales in the diamond ring sub – segment are particularly strong due to their significance in important life events.
- Industrial Diamonds: Primarily lab – grown diamonds are used in key sectors such as construction and electronics. In the construction industry, industrial diamonds are essential for cutting, grinding, and drilling. Over 60 million carats of industrial diamonds were consumed globally in 2023, and Europe, especially countries like Germany, the UK, and Russia, where construction and manufacturing output is projected to grow, has a significant demand for industrial diamonds.
By Country
- United Kingdom: The UK diamonds and diamond jewelry market had a market share of USD 9,064.00 million in 2024 and is projected to grow at a CAGR of 4.9% during the forecast period. Rising spending in infrastructure development and expanding urbanization are contributing to the growth. The UK remains a key market for engagement rings and high – end diamond accessories.
- France: The France diamonds and diamond jewelry market is projected to witness growth at a CAGR of 3.3% during the forecast period with a market size of USD 4,963.62 million in 2024. The country’s strong luxury retail market and consumers’ taste for high – end jewelry drive the demand for diamonds.
- Germany: The Germany diamonds and diamond jewelry market size was valued at USD 10,682.57 million in 2024 and is projected to grow at a CAGR of 4.3% during the forecast period. Classic and timeless diamond jewelry designs, with an emphasis on artisanal craftsmanship, precious metals, and diamonds, are highly valued in the German market.
- Italy: The Italy diamonds and diamond jewelry market is projected to witness growth at a CAGR of 3.5% during the forecast period with a market size of USD 4,639.90 million in 2024. Italy’s reputation for luxury jewelry and its skilled craftsmanship make it a significant player in the European diamond market.
- Russia: The Russia diamonds and diamond jewelry market is projected to witness growth at a CAGR of 3.1% during the forecast period with a market size of USD 8,362.62 million in 2024. Despite facing some geopolitical challenges, the domestic market still has a certain demand for diamond products.
- Spain: The Spain diamonds and diamond jewelry market is projected to witness growth at a CAGR of 3.2% during the forecast period with a market size of USD 4,424.09 million in 2024. The growing consumer interest in fashion and luxury items in Spain is fueling the growth of the diamond market.
- Luxembourg: The Luxembourg diamonds and diamond jewelry market is projected to witness growth at a CAGR of 4.2% during the forecast period with a market size of USD 1,672.52 million in 2024. The country’s relatively high – income population and its position in the European luxury market contribute to the growth.
- Portugal: The Portugal diamonds and diamond jewelry market is projected to witness growth at a CAGR of 3.9% during the forecast period with a market size of USD 1,133.00 million in 2024. The expanding middle – class population and their increasing purchasing power are driving the demand for diamond jewelry.
- Greece: The Greece diamonds and diamond jewelry market is projected to witness growth at a CAGR of 4.4% during the forecast period with a market size of USD 647.43 million in 2024. The tourism – driven economy and the growing domestic consumer market are positive factors for the diamond market in Greece.
- Rest of Europe: The rest of Europe diamonds and diamond jewelry market is projected to witness growth at a CAGR of 2.8% during the forecast period with a market size of USD 8,362.62 million in 2024. Although the growth rate is relatively lower compared to some other regions, there is still potential for market expansion in these areas.
By Diamond Type
- Natural Diamonds: Natural diamonds still hold a significant position in the European market, especially in the high – end jewelry segment. However, they face challenges such as fluctuating prices. The price of natural diamonds is affected by factors like supply – demand imbalances, geopolitical issues, and the competition from lab – grown diamonds. For example, the EU’s sanctions on Russian diamonds since March 2025, which ban the import of diamonds over 0.5 carats, have disrupted the supply chain. Antwerp Diamond Exchange data shows that Russian diamonds account for 30% of the global rough diamond supply. Some jewelers in Belgium have resorted to cutting large – carat diamonds into smaller ones to comply with the regulations, which has led to a 40% increase in the price of finished products.
- Lab – Grown Diamonds: The lab – grown diamond sector is expanding rapidly across Europe. Europe is becoming a key hub for lab – grown diamond production, with investments in diamond – manufacturing technology projected to exceed 3 billion euros by 2025. These diamonds are expected to comprise over 10 million carats by 2025 in Europe alone. Major luxury brands, such as De Beers and Cartier, have incorporated lab – grown diamonds into their collections to meet the increasing consumer demand for sustainable luxury options.
Challenges and Opportunities
The European diamond market faces several challenges. Fluctuating prices for natural diamonds make it difficult for businesses to plan and for consumers to make purchasing decisions. The competition from lab – grown diamonds is also putting pressure on natural diamond producers. Additionally, stringent environmental regulations affect diamond mining and trade.
However, there are also many opportunities. The increasing demand for luxury goods, especially among the growing high – net – worth individual population in Europe (estimated to be around 7 million by 2024), provides a large customer base for diamond products. The growing application of industrial diamonds in the construction and manufacturing sectors, with the projected growth in output in relevant countries, indicates potential market expansion. Moreover, the rising investment in lab – grown diamonds and the increasing consumer preference for sustainable and ethical products open up new market segments for diamond producers and retailers.
In conclusion, the diamond market in Europe in 2025 is in a state of transformation. While facing challenges, it also has numerous opportunities for growth and development, driven by changing consumer preferences, technological advancements, and economic factors.
