Gaining and maintaining a share of the hearts and minds of consumers will require a cohesive approach from an industry which is typically highly fragmented. – Damien Cody, President of the International Colored Gemstone Association (ICA).
Julius Zheng, GIA GG
The International Colored Gemstone Association (ICA), a non-profit organization, is the only worldwide body specifically created to benefit the global colored gemstone industry. ICA was founded in 1984 and is now comprised of 600+ gem industry leaders from mine to market, including miners, gem cutters, suppliers, retailers, trade associations, gemological laboratories, academia, museums, and more, from 47 countries who are devoted to advancing and promoting the knowledge and appreciation of colored gemstones.
ICA’s global network works to develop a common language for promotion and consistent business standards necessary to improve international communication and trade of colored gemstones.
In this exclusive interview on behalf of China Diamond Yearbook and Gem Spectrum, Damien Cody, President of the International Colored Gemstone Association (ICA), elaborated on market situation, trends, challenges and opportunities, synthetics, plans in 2026 and some other aspects.
How would you describe the current state of the global colored gemstone market, particularly in key regions like China, India, ASEAN, Europe, and the USA?
The market remains a little subdued as a result of a number of adverse factors coinciding. Consumer confidence and buyer sentiment have been adversely affected by a number of factors including flagging economies in major markets, ongoing conflicts, new trade barriers and costs, and the massive hikes in the gold price.
What trends are you observing in consumer preferences for colored gemstones across these regions? Are there any significant cultural or economic factors driving these trends?
Indian buyers are sourcing certain rough and cut stones suitable for their astrological properties. They are also looking for material to fulfill the strong demand from the fast-growing middle class.
Chinese consumers are self-purchasing through influencers on internet shopping channels spurning a ‘sell first and then buy’ distribution method. This is evident at many trade shows where some suppliers are setting up facilities for these operators.
In Western markets there is strong demand for the finest and rarest gems where high prices are being paid by collectors and investors. Rare untreated gems of the highest quality are fetching record prices at auctions.
Which important factors have impacted the demand and pricing for colored gemstones? What are the biggest challenges currently facing the colored gemstone industry?
The USA Tariffs have driven down demand in the USA from gem source countries like Brazil, India, Thailand and Sri Lanka which have had rates of between 20-50% imposed on goods. Even goods from countries attracting the low base rate tariffs of 10% have seen a dramatic slowdown with the customs requirements to pay the rates at the border or provide the equivalent bonds requiring complex procedures before entry.
A large proportion of US demand is being satisfied by older stock inventory held in the USA before the introduction of tariffs. This source is quickly being exhausted and it is expected that gem imports to the USA will begin to grow again in 2026.
The extraordinary 76% increase in the gold price in the last 12 months has resulted in greatly increased costs for jewellery manufacturers globally who now have no choice but to either pass on or absorb the increased costs.
Supply and production of material from the important artisanal mining sector has not recovered to the 2019 levels as a result of the loss of miners who looked for new work opportunities when Covid hit.
For many decades diamonds and coloured gemstones have co-existed in the same market and have complemented each other in jewellery designs. They sit comfortably together in jewellery showcases. Competition for share of wallet comes more from the other luxuries like holidays, watches, handbags and designer goods.- Damien Cody, President of the International Colored Gemstone Association (ICA).
In your opinion, are colored gemstones and diamonds competing with each other, or complementing with each other in the jewellery market?
For many decades diamonds and coloured gemstones have co-existed in the same market and have complemented each other in jewellery designs. They sit comfortably together in jewellery showcases.
Competition for share of wallet comes more from the other luxuries like holidays, watches, handbags and designer goods.
Do you see a growing trend of consumers choosing colored gemstones over diamonds for the center stone of engagement rings and other significant purchases? If so, why?
There has been a noticeable shift in the bridal market from diamonds towards colored gemstones as a result of reduction in diamond prices and the subsequent loss of margins. This has led to many retailers encouraging consumers to look at coloured stones as an alternative.
Another observation is that younger clientele are shifting towards color as a bridal alternative as an expression of personal taste, a growing appreciation of color generally and colored gemstones specifically, and the time honored behavior of young people to move away to the “norms” that their parents followed and search for choices that represent their individual lifestyle and self-expression.
The lab-grown diamonds has profoundly changed the landscape of the diamond market. The seeds of lab-grown colored gemstones creation were sown way back in the late 19th century. Why haven’t the lab-grown colored gemstones impacted the market in such a way as lab-grown diamonds have?
Because of the vast variety of coloured gems, there has not been the large-scale mass production of synthetic coloured gemstones. In the main they have been correctly described and sold as synthetic gemstones. There has been less confusion for consumers as a result.
What opportunities do you see for the industry to grow and innovate in the coming years?
The supply chain to the USA has been interrupted and suppliers of coloured gemstones will need to pivot by finding alternative markets for their products or alternative methods of exporting to USA. It is a fast-changing landscape so the best advice is to make informed and flexible decisions for the short term. Longer term drastic actions will require considerable research, planning and investment.
Gaining and maintaining a share of the hearts and minds of consumers will require a cohesive approach from an industry which is typically highly fragmented. Joining your industry association such as the International Colored Gemstone Association (ICA) will provide the most efficient collective marketing pathway along the supply chain to the consumer.
The modern consumer is looking for more information about the product they are buying. Whilst this might be difficult for some gems which are part of a very complicated supply chain, the industry can benefit when the sustainable credentials of a gemstone can be demonstrated. The colourful back-story about the discovery of the rough gemstone and transformation to a jewel will also be of great interest to the new-age buyer.
The ICA Congress in Brazil in 2025 was a highly anticipated event. What key achievements or outcomes did you see from this gathering?
Firstly, the ICA Congress showcased the importance of Brazil as a producer of coloured gems for the world market. The attendance at the Congress of a number Brazilian Government officials has subsequently resulted in a number of vital new initiatives which will assist the local industry.
In addition, delegates heard from a range of experts covering a range of important issues and topics including gemmological advancements, gemmological education, new finds and productions, marketing initiatives, cutting edge designs, ESG strategies, assistance initiatives for artisanal mining communities, tariff impacts and analysis of market conditions.
Delegates were also able to visit a number of gemstone mining operations.
Looking ahead to 2026, what are the major initiatives or goals that the ICA plans to focus on to further support and grow the global gemstone industry?
ICA is working on a number of major new initiatives covering various segments of our industry. Here are a few broad outlines of projects we are looking to progress in 2026:
Assistance for member countries lobbying their governments to strike bi-lateral trading agreements with the USA. This will enable those countries to have zero tariffs on all coloured gemstones as they will fall under an ‘Annex 3’ classification for goods that the USA cannot mine or naturally produce.
We are looking to enhance and expand the levels of our Accredited Ethical Member program so that it will provide a more robust demonstration of ethical trading and as result be more widely accepted by industry.
ICA is also looking to introduce new initiatives and measures to help grow in the high- potential markets of China and India.
Articles about ICA:
https://gem-spectrum.com/tag/ica
This exclusive interview by Julius Zheng has been commissioned by China Diamond Yearbook (2025). Special thanks to Shanghai Diamond Exchange, the publisher of China Diamond Year Book, for the approval of publishing this interview on Gem Spectrum.
This article was published on Gem Spectrum print magazine issue #6 (Winter 2025-26), Page 1. Browse the Flipbook here. Full-screen viewing and download are possible.
