Surveys

We’ve Reached the Sustainability ‘Tipping Point,’ De Beers Says

SurveysOct 26, 2021

We’ve Reached the Sustainability ‘Tipping Point,’ De Beers Says

It has become, and will continue to be, an important factor in diamond purchases, according to the 2021 Diamond Insight Report.

20211026_Okavango Delta.jpg
An aerial shot of the Okavango Delta in northern Bostwana, which De Beers Group has pledged money to protect in a partnership with National Geographic. De Beers is betting big that having a brand perceived as beneficial to people and the planet will pay off with consumers in the coming years. (Photo credit: Kostadin Luchansky/National Geographic)
London—What’s most important to consumers when buying diamonds, according to De Beers’ newest report? 

Price, design and, now, sustainability, a trend at least a decade in the making that’s now become an imperative for businesses, De Beers Group executives said Monday in an interview ahead of the release of the 2021 Diamond Insight Report. 

As part of this year’s report, De Beers commissioned consulting firm GlobeScan to conduct a worldwide study on consumers and their attitudes toward sustainability, particularly as they pertain to natural diamonds. 

What the study found is that consumers—particularly younger consumers—care about sustainability when buying a diamond and, what’s more, some of them are willing to pay a premium for it. 

The issue of sustainability is quickly becoming “table stakes” for companies in the diamond business, said David Prager, De Beers executive vice president and chief brand officer. 

“It won’t be a choice or an advantage to have a sustainable brand or product; it will be a must-have,” he said. 

According to the study, nearly 60 percent of consumers will select a diamond from a brand that demonstrates that it operates in an environmentally and socially responsible way over one lacking sustainability assurances. Of those, 85 percent are open to paying an average premium of 15 percent.

The study also showed that the more important the occasion, the more likely consumers are to want a diamond that was produced responsibly. 

Sixty-two percent of people buying natural diamonds for weddings, engagements and anniversaries rated sustainability factors as top priority in their purchasing decision. 

That number dropped to 50 percent for diamonds women and men were buying for themselves, and 45 percent for diamonds purchased for other occasions, like Mother’s Day or Christmas. 

Esther Oberbeck, De Beers’ senior vice president of strategy and analytics, has studied consumer behavior around diamonds for years.

She said with this most recent report, she was surprised at the geographical commonalities on sustainability it revealed, with consumers worldwide concerned about this issue.

The report also notes that sustainability concerns transcend age as well, though younger consumers— millennials in particular—are the current leaders in the movement, with Gen Z coming up behind as they gain more purchasing power. 

The study found that 68 percent of millennials and 65 percent of Gen Zers have bought products because of their sustainability credentials, compared with 42 percent of baby boomers.

When it comes to jewelry specifically, 30 percent of millennials and 21 percent of Gen Zers have purchased jewelry with sustainability credentials, compared with only 8 percent of boomers.

Sustainability considerations are also higher among consumers with a higher education (67 percent) and from affluent backgrounds (70 percent), whom, it should be noted, are the ones with excess disposable income to spend on sustainable products. 

 Related stories will be right here … 

The behavior of jewelry consumers is in lockstep with the broader global interest in sustainability in all sectors—not just diamonds and other luxury goods, but food, beauty products, household products, cars, and more.   

“There is no doubt in my mind that this is not a fad,” Oberbeck said. “This is not going away. This is a mega-trend that is here to stay. I think consumers are telling us this message loud and clear.”

In the Diamond Insight Report, De Beers cited GlobeScan figures that show growing interest in issues of corporate social responsibility.

In 1999, GlobeScan conducted a study in which it asked consumers if they had considered rewarding a socially responsible company with a purchase or word-of-mouth referral. Less than half, 46 percent, said they had done so.

When asked that same question in 2020, 69 percent of consumers said yes.

In a GlobeScan Radar study conducted in 2010, 67 percent of consumers said they were interested in learning more about how companies were trying to be more environmentally and socially responsible.

By 2020, that percentage had risen to 86 percent.

And in another Radar study in 2015, less than half of consumers said they felt it was a company’s responsibility to have a “vision to make the world a better place.” Fast-forward to 2020, and that percentage stands at 64 percent.

Sustainability is an issue De Beers has been tracking—and investing huge amounts of money in—for years, starting with the launch of Forevermark in Hong Kong in 2008 through the introduction of De Beers Code of Origin in Las Vegas this year.

Prager said consumer interest in sustainability has accelerated over the past 18 months due to a confluence of factors: COVID-19; the social justice movement that started in the United States and spread worldwide; more people witnessing the first-hand effects of climate change; and more younger consumers reaching financial maturity. 

All of this has brought society to what De Beers CEO Bruce Cleaver characterized as a “tipping point” for diamond purchases. 

In the news release accompanying the report, Cleaver said: “With sustainability being one of the key mega trends across all consumer sectors, this year’s Diamond Insight Report explores how sustainability factors are influencing consumer attitudes towards diamonds. 

“As is clear from this research, a tipping point has been reached—sustainability is no longer a trend that’s coming over the horizon; it’s already one of the key considerations in diamond purchases.”
The De Beers Sustainability Study was released Tuesday as part of the 2021 Diamond Insight Report, titled “Sustainability: shaping the future of the diamond sector.” 

The study is based on interviews with more than 8,400 people conducted in July.

GlobeScan connected with consumers in seven key markets for diamond consumption: the U.S., China, India, United Kingdom, France, Italy and South Africa.

Please check NationalJeweler.com in the near future for more analysis of the 50-plus page Diamond Insight Report, which can be viewed in its entirety on the De Beers website.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

De Beers Ryan Perry and David Prager
SourcingDec 04, 2023
David Prager To Leave De Beers in 2024

Ryan Perry, who has been with De Beers since 2002, also will be leaving the company next year.

Chrono24 ChronoPulse
WatchesDec 04, 2023
Chrono24 Debuts the ‘Dow Jones’ for Luxury Watches

The watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.

David Bouffard Signet Jewelers
MajorsDec 04, 2023
David Bouffard to Leave Signet, RJC

The industry veteran will step down from both roles in April 2024.

De Beers | Diamonds Falling
Brought to you by
The Most Important “C” in Diamonds: Confidence!

Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.

David Webb turquoise and lapis ring
TrendsDec 04, 2023
Amanda’s Style File: Decadent December

Tanzanite, turquoise, and zircon are all options for December babies, who sometimes “get the birthday shaft,” Amanda Gizzi writes.

Weekly QuizNov 30, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Lightbox x Roséate Light Wand pendants
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany Exec

The lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.

Lila Moss Calvin Klein campaign
FinancialsDec 01, 2023
Movado Lowers Guidance Again After Q3 Sales Dip

The company said it is facing a “challenging retail environment” but is prepared for the holiday season.

Platinum  Guild International Diamond Rings
Brought to you by
If It’s Custom, Make It Platinum

With holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.

Muzo emerald and argyle pink diamond necklace
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond Necklace

It’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.

Pink Supreme Diamond
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong Kong

The 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.

Claire’s CFO COO Chris Cramer
MajorsNov 30, 2023
Claire’s Hires Former Bath & Body Works Exec as CFO, COO

Chris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.

133 carat yellow diamond
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow Diamond

The stone headlining the upcoming sale could fetch up to $5 million.

Kwiat diamonds
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ Program

The retail offering lets customers track their diamond’s journey.

Diamond development hub in Angola
SourcingNov 29, 2023
Largest New Diamond Mine of the Decade Coming Online in Angola

The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.

Cast StyleBar Nordstrom
MajorsNov 29, 2023
Cast Debuts at Nordstrom, Closes on More VC Funding

The growing company also plans to open more of its own boutiques.

20180509_Buffett-header.jpg
EditorsNov 29, 2023
Warren Buffett on Success, Mistakes and Betting on America

The best quotes from the Oracle of Omaha and his right-hand man Charlie Munger from the 2018 Berkshire Hathaway shareholders meeting.

J. Dostie Jewelers
IndependentsNov 28, 2023
Maine Jeweler to Relocate After 76 Years

J. Dostie Jewelers will move from Lewiston to Yarmouth this spring.

Finks Jewelers new store
IndependentsNov 28, 2023
Fink’s Jewelers Opens 10th Store

It’s the company’s second location in Tennessee.

Mary Tyler Moore and a pair of Elsa Peretti Bone Cuffs
AuctionsNov 28, 2023
Mary Tyler Moore’s Jewelry Is Up For Auction

You can have this jewelry, why don’t you take it?

Original Miami Beach Antique Show 2024
Events & AwardsNov 28, 2023
The Original Miami Beach Antique Show Is Celebrating 60 Years

Next year’s milestone show will be full of educational programming and collaborations.

De Beers Metamorphosis high jewelry earrings
EditorsNov 27, 2023
10 Tips for Selling Diamonds This Holiday Season

Sales experts and a diamantaire share their best advice on how to send customers home with diamond jewelry.

Platinum Born new collection
CollectionsNov 27, 2023
See the New ‘Platinum Born’ Jewelry

The brand has released five new collections.

Frank Adams Jewelers
IndependentsNov 27, 2023
Frank Adams Jewelers Named ‘Family Business of the Year’

The Albany Business Review recently honored the 100-year-old company.

GIA Dr. John W. Valley
GradingNov 27, 2023
Dr. John W. Valley Retires from GIA Board of Governors

To honor his legacy, GIA has set up a scholarship in his name.

Stock image of police car with its lights on
CrimeNov 22, 2023
JSA Warns of Surge in Attacks on Jewelers on the Road

There have been eight attacks in the last month, spanning from a jewelry store parking lot in Rhode Island to highways in California.

Buddha Mama citrine bangle
TrendsNov 22, 2023
Amanda’s Style File: November Glow

These 15 pieces of jewelry celebrate November babies and the hues of citrine and topaz that reflect the colors of the season.

Columbia Gem House fundraiser
SourcingNov 22, 2023
Columbia Gem House Raises $12K for Wildlife

The money will help a nonprofit rehabilitate sea turtles.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy