Lab Diamond Market Growth: Now and Beyond
New research promises great things ahead for lab-grown diamonds. According to InsightAce Analytic, the global LGD market will reach a 10.3% CAGR during the next seven years. We will see the surge in demand both domestically and abroad. Some local markets expect the CAGR of 14.8%, doubling in volume and in revenue. For example, India’s jewelry retailers forecast annual growth of 5%-7%, claiming that the local industry will reach about $1.2 billion by 2033, while volume demand will increase to over 19 million carats. However, it’s the USA that will stay the dominating force with its 80% to 85% market share. While forecasts are aiming at the future growth, it’s clear that great developments in the LGD industry are already happening.
New Investments
As technology beyond man-made gems advances and new players appear, significant funding starts to pour into the industry. Last week alone, the Asian-based WeCare foundation was able to raise $350,000 to propel the research and development of lab-grown diamonds. At the same time one of the big Indian brands announced a strategic investment of $1,000,000 that will go into production and marketing of lab-created diamond jewelry. However, it’s not only the long-time growers who make the news. New companies connected to the lab diamond industry are launched globally all the time. While India and China will continue to be the main suppliers for a while, OAE, Europe, Australia, and the States are expected to keep up, seeing how fast the new startups emerge.
Possibilities
The more advancements the industry makes, the less the challenges become impossible. While there are growers who produce poor quality stones, there are a lot of companies who take their time and develop their know-how leading to the great product. Serious high-end manufacturers are experimenting with colors, cuts and shapes to create one-of-a-kind jewelry pieces. According to a luxury retailer that specializes on cultured gems, their main appeal is the ability to create “cuts that match the emotion”. Whether the stone is shaped like a flame, a bird or a bubble, or if it has a unique yellowish-blue color, it all became possible with lab-grown diamonds. And the future certainly holds even more ambitious projects that will come to live due to the industry’s breakthroughs.
Trends
Better price points and small ecological footprint allowed for a popularity of lab-grown diamonds with Millennials and Generation Z. And those customers, while looking for fashion jewelry, are also considering man-made gems for exquisite and high-end pieces. A few years ago most people shopped around for 1 carat stones. Today it’s the 2 to 5 carats category that is the fastest-growing. The trend is predicted to continue, meaning more and more engagement rings and custom pieces will feature a lab diamond. Another shift is the customers’ interest in fancy colors. Pink, blue, or yellow lab-created gems all cost significantly less than the mined ones, which allows jewelry consumers to experiment. At the same time, retailers are getting bolder, going mainstream and opening showrooms in the areas next to the biggest luxury names, such as the New Bond Street in London. With celebrities actively promoting jewelry with man-made stones, such as Ryan Gosling wearing a Tag Heuer’s watch set with manufactured stones at this year’s Oscars, the lab-grown diamond trend is something that will stay and only get stronger.
Whatever future holds for the lab-grown diamond market, we’re sure it will only move forward. And LaBrilliante, as the trusted manufacturer and supplier capable of fulfilling any, even the most unique requests, will be there to help our customers find what they will look for. Let’s step into this next stage of the jewelry industry together!
