Downturn

This move comes amid a significant downturn in the market, with natural diamond prices falling by 26% over the past two years and lab-grown diamonds experiencing an even sharper price drop of 74% since 2020. In response, the two entities have committed to co-investing in marketing efforts designed to protect the long-term value of natural diamonds and restore consumer confidence.

The marketing campaign will focus on category marketing and other promotional efforts, agreed upon annually, to bolster the ethical and symbolic value of natural diamonds. De Beers and the Government of Botswana will share the financial responsibility for these initiatives based on their respective shares of Debswana’s diamond supply.

The challenges facing the diamond industry have been underscored by De Beers' recent sales figures. In 2024, De Beers' sales of rough diamonds fell for the second time in the year, recording a provisional $315m—down from $383m in the previous cycle and a significant drop from $456m at the same time in 2023. While De Beers attributed the decline to the traditionally quieter summer period, industry experts argue that the results reflect a market that remains under pressure, with demand struggling to recover.

Transformation

The diamond industry is undergoing a profound transformation, with shifting consumer preferences and ethical considerations reshaping the market. Lab-grown diamonds have gained traction as a seemingly sustainable alternative - although that has been greatly debated - leading to an overall decline in demand for traditionally mined diamonds.

Whether this marketing initiative will be enough to counteract broader market trends remains to be seen, but it represents a clear effort to safeguard an industry that has long been a cornerstone of Botswana’s economy and De Beers’ global operations.