Although the production of lab-grown diamonds has now been possible for over 70 years, they have only been able to be used in the jewelry industry for a good decade. However, in this short period of time, sales of jewelry made with lab-grown diamonds have taken off.
As Professional Jeweller reports, lab-grown diamonds now account for 7-8% of the global market share, up 500% from 1.5% in 2018, a span of 3 years. This growth continued into 2022. According to Innovation Diamonds Managing Director Isaac Moore, sales of lab diamonds in February 2022 were up 80% compared to the year before.
Many jewelry manufacturers were initially hesitant about selling lab-grown diamonds alongside their existing jewelry portfolio with diamonds. The clear distinction between mined and lab-grown diamonds is the basic prerequisite for enabling buyers to make an informed purchasing decision. The fact that companies such as River Mounts, Pandora or Christ are now deliberately including jewelry with lab-grown diamonds in their product range and offering them specifically as an alternative to mined diamonds can be seen as a reaction to the increased demand for conflict-free and sustainable diamonds.
The rapidly growing market share of lab-grown diamonds is partly due to the fact that Pandora or Signet have included jewelry with lab-grown diamonds in their product range. By doing so, they have sent a clear signal to the entire industry. But other factors are also involved in this development, such as the change in awareness among consumers, the encouragement from the leading gemological institutes, or the cost advantage of lab-grown diamonds over mined diamonds. But the fact that one third of the world's mined diamonds come from Russia, and thus the critical debate among buyers regarding a transparent value chain has increased, is also an advantage for the trade in laboratory diamonds that should not be neglected.
Carat CEO Scott Thompson therefore believes that, contrary to the Economist's 2016 estimate, lab-grown diamonds will account for up to 75% of the global market share long before 2050.
In light of such forecasts, we at DIAVON are confident about the future. For us, the trade in lab-grown diamonds represents an opportunity for the jewelry industry to work in harmony with nature instead of exploiting it. We are convinced that this trend will continue and lab-grown diamonds will contribute decisively to the development towards a sustainable jewelry industry.
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