More Than A Trend: Lab-grown Diamonds Are Not Stopping
There’s not even a slightest sign of decline of lab-grown diamond sales. In fact, they were strong during preparations for Mother’s Day, and are only projected to grow with upcoming holidays. That’s what many industry analysts and business owners are saying. While the prices of mined diamonds surge due to the unbalanced supply caused partially by sanctions on Alrosa, lab-grown diamonds prove themselves to be just as gorgeous and at the same time more affordable gifts.
Across the country the jewelers can see the rising demand. According to Edhan Golan, an independent diamond industry analyst, this March saw the number of sold engagement rings with man-made diamonds jump 63% compared to 2021. In February this figure was even bigger, with an 80% jump compared to the last year. That means only one thing: consumers are accepting lab-created diamonds in engagement rings. This category “is growing for sure… and growing at a very quick rate” - an owner of a retail store said to the local magazine.
Another jewelry store owner described the typical buyer of lab-grown stones as “younger than 40 and very budget conscious”. And it’s a fact, man-made gems are most attractive to millennials and Gen Z. Although some consumers from older generations like their affordable prices as well. While advantageous in cost, lab-diamonds are practically identical in everything else to the mined ones. This contrast makes them one of the fastest-growing jewelry categories. Major retailers, such as Signet-owned brands, are continuing to expand their bridal collections with manufactured diamonds and bring lab-created stones to the mainstream.
A lot of marketing is based on sustainable sourcing of man-made stones. "As the momentum for conscious consumerism grows, the surge towards lab-grown diamonds isn't surprising… consumers are embracing the choice to purchase a piece of fine jewelry that aligns with their values," said the CEO of a big lab-created diamond brand. This advertising strategy along with the flexible prices are what helped many jewelers start selling manufactured gemstones in the first place. And by last year, the lab diamonds sales have surpassed the sales of mined stones for some of those retailers. While a lot of the sales increase came to the 1 carat studs during the high of the pandemic, recent data shows that lab diamonds that weigh 2 carats and more are becoming new best-sellers. “In the last three years there has been a 360-degree change in retailers’ interest in lab-grown, 75% to 80% of American retailers are somehow testing it in their retail stores” - said the CEO of New York-based lab diamond company. At the same time, Europe and Asia are catching up, as the consumers’ demand is steadily increasing there as well.
While this all is happening, even the strongest opponents of lab-created diamonds are dropping the defensive discourse. “Lab-grown is a category that’s going to exist. We’re taking the high road. All you can do is educate the consumer about both” - said Gabrielle Grazi, vice-president of retail strategy and partnerships for the Natural Diamond Council, in her recent interview to INSTORE magazine.
All in all, the future seems bright for man-made diamonds. As acceptance and demand are on the rise, so is the assurance that manufacturers and retailers of manufactured gems have made the right decision. We at LaBrilliante fully support the development of the lab-grown diamond industry and strongly believe that it is here to stay. And so are we!
