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THE FUTURE AT A GLANCE

> The diamond industry is likely to continue to experience increased sales and price volatility. Organisations across the value chain will need to improve the way they forecast and plan to navigate this trend successfully.


> Consumer demand growth will continue to be generated from Asia, particularly China and India, driven by higher household income over the next 10 years, and the US, the world’s largest market.


> Millennials in all main markets are set to become the most important cohort for diamond jewellery purchases.


> Continued innovation by retail in general, and competitive sectors in particular, will generate strong competition from other luxury and experiential categories; investment will be needed to safeguard and nurture the diamond dream and capture the opportunity presented by the growth potential in Asia, the US, and globally, by Millennials.


> The midstream will continue to come under pressure periodically; financially robust and transparent diamantaires with scale, differentiated business models, and/or strong collaborations with downstream players are most likely to thrive.


> Beneficiation will continue to be a key driver in the geographic shift of the midstream to countries and regions where diamonds are mined.


> The upstream will need continued focus on cost reduction and productivity improvements; innovation as well as strong, collaborative relationships with governments and other stakeholders will be increasingly important.


> Diamond production will likely increase slightly in the short term and decline slowly after 2020, with large, economically viable new discoveries unlikely.


> While consumer demand is currently negligible, the capacity to produce synthetics for gem applications will continue to expand and, over time, the cost and value of synthetic production will fall.


> Across the value chain, innovation will remain critical – to strengthen the diamond dream and motivate sales, to develop new business models in the midstream, and to counter cost pressures in the upstream.