Why is De Beers, the Biggest Diamond Company in the World is in Trouble?
De Beers S.A., a South African company synonymous with diamonds, has long held the throne as the world's largest producer and distributor of these precious gems. Known for its extensive involvement in the diamond industry, from mining to trading to retail, De Beers has been a dominant force. However, recent developments suggest that the glittering empire is facing significant challenges that threaten its longstanding supremacy. Declining Revenue and Sales In the past year, De Beers has seen a dramatic decline in its financial performance. The company's revenue fell by a staggering 33%, with rough diamond sales plummeting by 40% from $6 billion in 2022 to $3.6 billion in 2023. This steep decline is a clear indicator of the mounting pressures and competitive challenges De Beers is facing. The Rise of Lab-Grown Diamonds One of the most significant threats to De Beers' traditional business model comes from lab-grown diamonds. These man-made stones, created usin...
