How a Century-Old Giant Is Battling Geopolitical Shifts, Lab-Grown Rivals, and Market Upheaval

For over a century, De Beers has reigned as the global monarch of the diamond industry. From its colonial roots in South Africa to its marketing campaigns that engraved “A diamond is forever” into popular culture, the company has long dominated the narrative—and the supply—of the world’s most coveted gemstone. But in 2025, De Beers is fighting a multi-front war that threatens to dismantle its historic supremacy.

The first battlefront is geopolitical. Once reliant on vast diamond mines in Botswana, Namibia, and South Africa, De Beers now faces political headwinds as African governments demand a greater share of the profits. In Botswana, long-standing agreements have come under review, with the government seeking more control over valuation and export rights. Negotiations have grown tense as leaders emphasize national sovereignty and local beneficiation over legacy contracts.

Meanwhile, Russia’s state-owned diamond producer ALROSA continues to operate despite Western sanctions. This has disrupted traditional pricing mechanisms and introduced a degree of volatility to the global diamond market. De Beers, long a champion of supply control, finds its influence diluted as parallel supply chains grow more prominent—especially in Asia, where enforcement of sanctions is less rigid.

Then there is the technological challenge: lab-grown diamonds. Once viewed as a fringe novelty, lab-created stones have gone mainstream, offering near-identical quality at a fraction of the cost. Younger consumers—especially in North America and Europe—are increasingly choosing lab-grown diamonds not only for price but also for ethical and environmental reasons. De Beers has responded with its own lab-grown line, Lightbox, but critics argue that this move undermines the exclusivity that once defined the brand.

De Beers also grapples with changing consumer behavior. The “forever” message that once fueled endless romantic associations with diamonds is losing traction in a culture that prizes flexibility, experience, and sustainability. Engagement ring sales have softened, and resale platforms have grown, challenging the notion that diamonds hold enduring value.

Despite these pressures, De Beers is not retreating. The company is investing in blockchain technology to authenticate natural diamonds and combat counterfeiting. It is also expanding its retail presence in Asia, where demand for luxury remains strong. Marketing efforts are being recalibrated to highlight sustainability, traceability, and craftsmanship, while pushing a narrative of rarity and legacy.

In conclusion, the diamond wars De Beers now faces are not fought in mines alone. They play out in boardrooms, laboratories, trade negotiations, and consumer minds. As new competitors and narratives emerge, the company’s future will depend on its ability to adapt without losing the mystique that made it an empire.