Essentials! A comprehensive overview of the current development status of the diamond micro-powder industry: The industry is moving towards intelligent production development (Part 2)


4. Analysis of the Current Situation of the Diamond Micro Powder Industry

1. Output Value

The stability of upstream supply combined with the huge demand from downstream industries has led to rapid growth in the diamond micro powder industry. It is expected that by 2025, the output value of diamond micro powder in China will reach 2.61 billion yuan, with a CAGR of 10.6% from 2020 to 2025. In the future, with the stable development of upstream and downstream industries and support from national policies, the prosperity of the diamond micro powder industry is expected to continue to improve.

From a global market perspective, China is a major country in the world for diamond micro powder. According to data from Growth Market Report, the global diamond powder industry was approximately 1.79 billion yuan in 2020. In 2020, the output value of domestic diamond micro powder accounted for 88.3% of the world's diamond powder industry.

2. Output Situation

In terms of diamond micro powder output, China's diamond micro powder has remained stable in recent years. According to statistics, in 2020, China's diamond micro powder output was 5.08 billion carats, a year-on-year increase of 4.96%. The output reached 5.39 billion carats in 2021, with an accelerated growth rate.

3. Export Situation

In terms of exports, with the recovery from the pandemic, the domestic export volume of diamond micro powder in 2021 was 4.785 billion carats, a year-on-year increase of 48.79%, significantly boosting export volume.

From the perspective of global diamond micro powder exports, China's export value accounts for more than half. According to data from Growth Market Report, the export value of domestic diamond micro powder was 950 million yuan, accounting for 53.1% of the world's diamond powder industry.

 

5. Competitive Landscape of the Diamond Micro Powder Industry

1. Market Concentration

The diamond micro powder industry has many companies, but they are generally small in scale, with production technology and product quality varying widely, resulting in low industry concentration. The low industry concentration means that most companies mainly compete in the low-end product market through pricing, leading to intense and disorderly competition. In the future, as downstream customers have higher quality requirements for diamond micro powder, small companies will find it difficult to meet market demands, and the competitive advantage of large-scale enterprises will become more prominent, leading to an expected increase in industry concentration.

Important competitors in the industry include Henan Power Diamond Co., Ltd., Henan Huanghe Whirlwind Co., Ltd., Funike Superhard Materials Co., Ltd., and Zhecheng Huifeng Diamond Technology Co., Ltd. Other competitors have more diverse products, with diamond micro powder business accounting for a relatively small proportion, while Huifeng Diamond focuses on the diamond micro powder business.

From the comparison of the revenue of Huifeng Diamond and Power Diamond in related businesses, from 2019 to 2021, the scale of Huifeng Diamond's diamond powder business was larger than that of Power Diamond, and the gap is showing an expanding trend.

2. Operating Situation of Huifeng Diamond

In terms of output, the company's market share in the domestic micro powder industry reached over 10% from 2019 to 2021, peaking at 15.9% in 2021, with a rapid growth rate. In addition, in November 2021, the company's synthetic single crystal diamond micro powder was listed as a single product by the Ministry of Industry and Information Technology and was awarded the title of "Specialized, Refined, Characteristic, and Innovative 'Little Giant'".

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