The diamond buying experience has undergone a significant transformation thanks to newer generations. Both millennials —born between the early 80s and mid-90s— and Generation Z —born between the mid-90s and late 2000s— have reshaped the diamond industry with their unique values and preferences. This article explores how these generations are changing the diamond market and what this means for the industry.
Millennials: the leading diamond consumers
According to The Diamond Insight Report 2023, published by De Beers Group, millennials made up nearly half of all buyers and accounted for around 60% of the value of the US mined diamond market in 2022. In China, the second-largest global market, which was a major focus of the report, those born between the 80s and mid-90s represented two-thirds of all buyers and the total market value.
Although millennials are the main drivers of global diamond demand, Generation Z is quickly gaining ground. In the US, Generation Z’s share of mined diamond jewelry purchases more than doubled, rising from 6% in 2021 to 17% in 2022, according to the De Beers report. While this report doesn’t include lab-grown diamonds, it offers valuable insights into the ongoing evolution of the diamond industry.
Generation Z is expected to become the leading consumer group in the luxury market in the coming years. Their share of purchases in this sector could reach 25% by 2026 and 40% by 2035, according to Bain & Company.
How millennials are shaping the diamond industry
As we’ve seen, millennials are the top consumers in the diamond market. But what impact do these consumers have on the industry?
Changes in business models
Millennials are driving a shift in traditional business models within the diamond industry. According to projections from Bain & Company, millennials and Generation Z will make up 70% of luxury spending by 2025, which forces industry leaders to adapt.
People born in the 80s and the beginning of the 90s prioritize ethical consumption and have made sustainability a key factor in their purchasing decisions. As a result, there’s been a growing focus on sustainable and ethical practices in mined diamond production and a significant rise in lab-grown diamonds, which offer the same physical, chemical, and optical properties as mined gems.
Traditional brands have had to adapt. Companies like De Beers and Tiffany & Co. are investing in transparency and traceability, using blockchain technology to track their diamonds from the mine to the final customer. However, the true pioneers in this area have been lab-grown diamond manufacturers, who link each gemstone to an NFT or digital record.
Brilianto, a leading company in creating eco-friendly diamonds, ethical, sustainable, and uniquely sourced gems, leverages these digital assets to add an extra layer of trust and transparency to the high jewelry sector.
Millennials: buying preferences in the diamond market
Millennials buy diamonds with more knowledge and better access to information than previous generations. This cautious approach is part of the DNA of the new generations, skeptical given the prevalence of fake news, deepfakes, and influencers offering their services to the highest bidder. Additionally, this is a natural buying habit in an economic environment marked by inflation and uncertainty.
Those born in the 80s or later prioritize experiences over material possessions. When it comes to buying diamond jewelry, they focus on pieces that are meaningful and offer long-term value. This generation is skilled at researching product characteristics and is open to ethical and sustainable diamond alternatives, such as lab-grown diamonds.
Generation Z and their focus on authenticity
Generation Z, which is gaining more influence in the global diamond market, is more socially conscious and places greater value on the authenticity of messages compared to millennials.
The value of authenticity
As the first generation of digital natives, Gen Z has grown up in a digital environment filled with fake news and sometimes unreliable marketing practices, with content creators who aren’t always users of the products they promote.
For this reason, younger generations prioritize authenticity above all. They value relationships based on trust and prefer to interact with brands that are genuine and transparent in their practices.
For Generation Z, authenticity means aligning with brands that reflect their values, including a strong commitment to sustainability and social responsibility. Brands aiming to attract this market must demonstrate a genuine and tangible commitment to these principles, supporting them not only with marketing statements but also with concrete and measurable actions.
Additionally, Generation Z values the stories behind the products they buy. They want to understand the origin, the production process, and the impact of their purchases. Brands that can share a consistent and transparent story about their practices and products earn the loyalty of these consumers.
As a result of these changes, lab-grown diamonds are becoming a more sustainable choice than mined diamonds, with the potential to create new meanings. A great example is the diamonds from the FC Barcelona collection, Etern Spotify Camp Nou, made from the grass of Camp Nou and committed to transparency and traceability through blockchain technology. Each Barça diamond comes with its own NFT. The unique origin of these pieces, one of the most iconic football stadiums, adds layers of values, experiences, and emotions for the buyers.
Social awareness
Authenticity also aligns with Generation Z’s desire for social justice and equity. They seek brands that authentically represent diversity and are committed to causes like sustainable luxury and ethical jewelry. This generation is more focused on experiences that add value, which influences their decisions to support brands that offer genuine experiences and make a positive impact on the world.
Generation Z is also known for their online activism. They use social media to advocate for causes—such as social justice, climate change, and gender equality—that are important to them, and they expect brands to be held accountable to these values by today’s diamond consumers.
How younger generations are redefining the luxury market
Younger generations have transformed the luxury market over the past two decades. Their growing interest and purchasing power have pushed brands to adapt, incorporating elements of contemporary culture to meet their demands. This shift reflects a new definition of luxury in today’s world.
The rise of the luxury market among young consumers
Interest in luxury among younger generations has grown significantly over the past few decades. In 2019, millennials and Generation Z accounted for 40% of luxury buyers in North America, and they are expected to represent 70% of the global luxury market by 2025, according to Bain & Company. This trend is partly driven by luxury brands’ strategies to attract a younger audience, offering more accessible products and collaborations with streetwear brands.
Brands like Louis Vuitton and Gucci have led this shift, incorporating elements of pop culture and streetwear into their collections. Louis Vuitton’s collaboration with Supreme, an urban fashion brand inspired by skate culture, is a prime example of how a luxury brand can reinvent itself to appeal to a younger, more diverse audience.
New categories shaping the luxury market
Luxury brands have expanded their offerings to new categories such as luxury sneakers and children’s apparel. These categories have proven effective in attracting younger consumers to the luxury market. For example, the luxury sports footwear market grew from $3 billion in 2016 to approximately $7.7 billion in 2021.
In addition, brands are exploring new ways to connect with consumers through unique experiences. Pop-up stores, limited-edition collaborations, and exclusive events are becoming the norm in luxury marketing strategies. This not only creates a sense of exclusivity but also allows brands to interact directly with consumers in a more intimate and personalized setting.
The cultural influence of millennials and Gen Z on luxury shopping
Social media has played a key role in normalizing luxury spending among younger generations. Celebrities and influencers showcase luxury products, creating the perception that luxury is an integral part of modern lifestyle. This visibility has increased awareness and desire for luxury products among young people, who often access this market through small indulgences, such as luxury sneakers.
Pop culture has also influenced this perception. Movies, TV shows, and music often portray a luxurious lifestyle as aspirational. This, combined with the power of social media, has made luxury more accessible and desirable to younger consumers. Brands are capitalizing on this trend by collaborating with influencers and celebrities who connect with the younger generations.
Sustainable buying preferences
Consumers born between the 80s and late 2000s are known for placing a high value on sustainability. Lab-grown diamonds fit perfectly with these preferences, as their carbon footprint is significantly lower than that of mined diamonds.
Lab-grown diamonds
One of the biggest trends among younger consumers is the preference for lab-grown diamonds. Millennials and Generation Z are drawn to lab-grown diamonds due to their affordability, ethical production, and customization options. These diamonds offer transparency about their origin, giving peace of mind to consumers concerned about the environmental and social impact of mined diamonds.
Transparency and accountability
The demand for sustainable and ethical practices has driven diamond companies to adopt more transparent and sustainable supply chains. What’s more, certifications and independent audits are becoming standard practice to ensure accountability throughout the supply chain. As we’ve seen, blockchain technology, with NFTs, plays a significant role in supporting these best practices.
Values of authenticity, sustainability, and ethical choices
Millennials and Generation Z are transforming the diamond industry with their values of authenticity, sustainability, and ethical choices. Their distinctive approach to diamonds, which prioritizes sustainability and seeks to give new meanings to pieces, is driving the industry to innovate and adapt. The adoption of lab-grown diamonds and the demand for responsible business practices are redefining what it means to buy diamonds in the 21st century.
These generations aren’t just consumers. They’re actively shaping the diamond industry. As their influence grows, the future of the industry will align more and more with the values of sustainability, authenticity, and innovation that they hold dear.