Lab Grown Diamonds Market Shift

Lab-grown diamonds have been rapidly gaining popularity in recent years, with the market showing no signs of slowing down. In fact, according to industry experts, the market is projected to continue growing and expand even further in the coming years.

One of the key factors driving the growth of the lab-grown diamond market is consumer demand. Many consumers are now looking for more affordable and sustainable alternatives to natural diamonds, which has led to an increase in demand for lab-grown diamonds. As a result, the lab-grown diamond market has seen significant growth in recent years.

According to market research firm The MVEye, the lab-grown diamond market currently accounts for 8-10 percent of diamond jewelry sales globally. This is a significant increase from just a few years ago when the market was relatively small. The U.S. remains the largest consumer market for lab-grown diamonds, accounting for about 80-plus percent of lab-grown diamond jewelry demand, compared with about 50-plus percent of total global diamond jewelry demand.

Market analyst Paul Zimnisky has also been closely following the lab-grown diamond market and has increased his forecast for lab-grown jewelry sales from $8 billion-plus to $9 billion-$10 billion. This would see lab-grown diamond jewelry accounting for more than 10 percent of total global diamond sales, according to his model.

Another factor driving the growth of the lab-grown diamond market is the increasing availability of lab-grown diamonds. As more companies enter the market, the supply of lab-grown diamonds has increased, making them more accessible to consumers. In addition, advances in technology have made it easier and more cost-effective to produce lab-grown diamonds, which has also contributed to the growth of the market.

In terms of product offerings, lab-grown diamonds are becoming increasingly popular in larger sizes. According to data and consulting company The Edge Retail Academy, larger lab-grown diamonds are showing significant increases in most of the key performance indicators. For example, the 3.25- to 3.50-carat range showed a 194 percent increase in gross sales, a 114 percent increase in units sold, and a 25 percent increase in average retail sale. This suggests that some customers might be trading up in size from smaller natural diamonds. The 4.5- to 5-carat range also recorded a spike of 582 percent in gross sales, and sales in the 5.5- to 6-carat range rose 78 percent.

Despite the rapid growth of the lab-grown diamond market, some experts believe that lab-grown diamonds are creating incremental demand for diamond jewelry that wouldn’t otherwise exist. As lab-grown diamonds reach maturity as a product, consumers are likely to view natural and lab-grown diamonds as distinct products, which will drive demand for lab-grown diamonds much more by marketing than by product availability.

One of the major companies driving the growth of the lab-grown diamond market is Signet, which has started investing in stocking and marketing the sector in a big way. Signet officially got into the lab-grown diamond game a few years back, but this year has really started to push the product. Another major company that has entered the lab-grown diamond market is Pandora, which launched its new lab-grown line in the U.S. earlier this year.

As the lab-grown diamond market continues to expand, there are several opportunities for retailers and manufacturers to capitalize on this growing trend. One of the biggest opportunities is to focus on sustainability and ethical sourcing. Lab-grown diamonds are often marketed as a more sustainable and ethical alternative to natural diamonds, which is a key selling point for many consumers.