Lab-Grown Diamonds Are Holiday Season Bestsellers

According to the recent data by Axios, nearly half of all diamonds sold this year were lab-grown. What’s much more surprising is that the customers’ spendings actually increased, despite the declining prices. Consumers are shopping for bigger and better diamonds and aren’t afraid to spend more on the exquisite jewelry designs. As celebrities continue to endorse lab-grown diamonds, and the Holiday Season starts, there’s a question of whether lab-grown diamonds are able to jump over the 50% sales mark during this Winter.

As more and more celebrities and brands promote and endorse lab-created diamonds all around the world, consumers are getting more and more comfortable with purchasing jewelry set with man-made stones. Whether it's budget-fashion retailers, or high-end jewelry houses, you can now find manufactured gems almost everywhere. The likes of Hailey Bieber, Bella Hadid, and Taylor Swift proudly wear lab-grown items during red carpet events, or in their promotional videos, while Princess of Seborga attends the exclusive collection launch.
At the same time, with new investments into the production and promotion, the sales of man-made diamonds outside the USA are estimated to grow 15-20% annually. Even traditional luxury groups like Tata are now entering the lab-grown market through their retail chains, validating the segment's long-term potential. In the United States, revenue from the LGD has jumped over the 20% mark from the total jewelry sales. And while such a success may seem threatening to the mined diamond industry, it actually works in its favor. Customers generally started looking into bigger sizes. The average size of the purchased lab-created stone has increased 60% since 2020, while the average size of the mined diamond in the engagement ring has grown nearly 50% after LGD entered the market, according to Edahn Golan.
As a result of this paradigm shift, the average diamond, whether it’s lab-grown or mined, sells for around $4,600. With the increased diamond size and number of man-made stone sales, the general revenue of jewelry retailers rose significantly after the LGD market emerged. And while some independent jewelers may have experienced some slackening sales this year, the data supports a hopeful outlook. We expect that both lab-grown and mined diamonds will be in high demand throughout the holidays. And taking into account how fast the lab-created diamond sales increase, the 2 carat man-made diamond engagement rings, which is the most sought after category, may become the best-selling item. So it only makes sense for all retailers to get ready for a high lab-grown diamond demand. LaBrilliante is here to help you with it!