Lab-grown Diamonds: Jewelry Without Sacrifice
The unprecedented growth of a lab-grown diamond market is not just figures and percentages. The jewelers themselves are experiencing the demand shift and changing their attitude towards the manufactured gemstones. A lot of jewelers in the U.S. alone tried to stay away from this segment for a very long time. Merely a couple of years ago it was a niche. Now, items with lab-created stones represent around 46% of the total U.S. diamond jewelry market by volume. And the retailers from other corners of the world are keeping up. So what’s the driving force behind this change?
The jewelers around the world report the increase in revenue after introducing lab-grown diamonds to their usual offerings. For some stores, the growth is said to be as high as 300% compared to the previous year. According to several projections, lab-grown diamond sales may reach $18.1 billion by the end of this year, accounting for almost 30% of the revenue for jewelry retailers. And in ten years, the sales are forecasted to top at least $28.1 billion. According to InsightAce Analytics, the man-made diamond market is set to experience an astronomical annual growth rate of 10.3% from 2024 to 2031. And these are not just bare numbers.
According to jewelry retailers, the key difference of lab-grown diamonds is that they don’t require a sacrifice. Large mined diamonds may be too pricey for many customers. And simulants, such as cubic zirconia or moissanite, don’t offer the same genuine quality and durability. The man-made stones are the solution to both of these problems. While indistinguishable from the mined gems, even large or top-quality lab-created diamonds can fit almost anybody’s budget. The younger generations remain the key buying groups. However, even baby boomers are getting more and more unapologetic about shopping for the lab-grown jewelry. At first, the price difference propelled the LGDs to win over fashion items, such as studs and pendants. Today the man-made stones are used for nearly half of custom engagement ring jobs. The cost of gold keeps growing, and the more exquisite the design is, the more gold it usually requires. And this is why lab-grown diamonds are in such a high demand with both customers and retailers alike. They help jewelers keep the self-costs and the price tags from crossing reasonable borders without sacrificing their margins.
If you are still on the fence about introducing lab-grown diamonds to your customer base, now is the time to do it. Both market analysts and jewelers say that the demand will continue to grow, and expanding your offerings is the best way to maintain and increase the success of your business. LaBrilliante is a trusted supplier of precision-cut lab-made diamonds and top-quality lab-grown jewelry. Our main goal is to help you experience growth. And the holiday season seems like the best time to start this journey.
