
Lab-Grown Diamonds: Transforming the Future of the Jewellery Market. Sustainability, Affordability, and Innovation Drive a Consumer Shift
Lab-Grown Diamonds: Transforming the Future of the Jewellery Market. Sustainability, Affordability, and Innovation Drive a Consumer Shift
Credits: SOLO for diamonds @solo_for_diamonds
By 2030, lab-grown diamonds are expected to significantly impact the traditional diamond market, continuing their rapid growth, potentially capturing 15-20% of the market share, considering that the value of the jewellery market is expected to increase from about 270 billion U.S. dollars in 2022 to over 330 billion dollars by 2026. This increased market share will lead to a significant shift in consumer preferences and demand. First of all, price competition because the increased supply of lab-grown diamonds will lead to downward pressure on prices, making them more competitive with traditional diamonds. This price competition will further drive the adoption of lab-grown diamonds, especially among budget-conscious consumers. Then, since the traditional diamond industry has many challenges to face in maintaining its market share and profitability - as consumers increasingly opt for lab-grown diamonds - this could lead to a decline in the demand for natural diamonds, potentially affecting the industry’s overall performance. Also, the growing demand for lab-grown diamonds will create new job opportunities in the industry, particularly in the areas of production and research. This will contribute to local economic growth and drive innovation in related fields.
Credits: JVRAI @vraiofficial, MATILDE Sustainable Jewellery @matilde.jewellery
The emphasis on sustainability and ethical practices in the fashion industry will continue to drive the demand for lab-grown, and consumers will increasingly seek transparent and responsible sourcing, which lab-grown diamonds can provide. This trend will further accelerate the adoption of lab-grown diamonds and potentially disrupt traditional diamond mining practices. In terms of quality and aesthetics, they have made significant strides, with advanced technologies ensuring they possess the same optical and physical properties as natural diamonds. This will continue to increase their acceptance and popularity among consumers.
Credits: LOEV @loevjewelry, VEINS @veins_paris
Another interesting key point to focus on is the resale value of lab-grown diamonds, that will be a key consideration for both buyers and sellers. As the market becomes more established, the resale value of lab-grown is expected to stabilize and potentially increase, making them a more attractive option for consumers. The news that De Beers will cease creating synthetic diamonds for its Lightbox consumer brand, in a strategic shift to double down on natural diamonds, will leave more space for other producers to compete in the lab-grown diamond jewellery segment, which is expected to continue its rapid growth, and for prices to decline.
Credits: LÖF @lof_jewellery
In summary, this industry disruptive move, could lead to a new scenario. Firstly, let’s specify that De Beers will cease producing lab-grown diamonds for its Lightbox jewellery brand, to instead focus on industrial applications of lab-grown diamonds rather than jewellery, through Element Six, its synthetic diamond unit. Lightbox, De Beers’ lab-grown diamond jewellery brand, will continue to operate and sell existing inventory for the “foreseeable future”, but De Beers has not determined the long-term future of the brand. As a consequence, the lab-grown diamond jewellery market will likely see increased competition from other producers, as De Beers’ exit leaves a void in the high-profile lab-grown diamond jewellery segment. Prices for lab-grown diamonds are expected to continue declining, as production capacity increases globally, especially in India and China.