The diamond mining industry to grow at a Compound Annual Growth Rate (CAGR) of around 5% by 2019, according to a new report from Research and Markets, Diamond Mining Industry 2015-2019’.

 Increased demand from emerging markets such as China and India for diamond jewelry is driving the growth of this industry, says a Research and Markets statement.“The environmental issues arising due to diamond mining is expected to pose challenges for the growth of the market during the forecast period. Diamond mining uses a variety of mining methods, some of which include the evacuation of large amounts of soil from the earth, causing land unsettlement. The mining activities also lead to the removal of other minerals and huge carbon footprints. As a result, new regulations are being set up to ensure evacuation, stockpiling and return of other minerals to allow the region to come back to its natural state,” notes the statement, which forecasts that Africa will retain its leadership in market share with a growth rate of 6%.

The diamond mining market is highly competitive due to the presence of numerous players. The industry has been witnessing consolidation with the smaller entities being acquired by major vendors, notes Research and Markets. Most of the vendors invest heavily in R&D to succeed in this intensely competitive market.