FinancialsNov 03, 2021
Pandora’s Lab-Grown Diamond Line Coming to the USLab-GrownNov 04, 2021
Analyst: Fashion Jewelry, Industrial Uses Will Drive Lab-Grown Diamond Demand
Paul Zimnisky shared his short- and long-term outlook for the market in an updated forecast released last week.
Paul Zimnisky cited the colored lab-grown diamonds Swarovski introduced in 2020 as an example of a major brand positioning the stones for fashion jewelry. Pictured here are three of the 16 colors Swarovski created, clockwise from top, “Disco Ink,” “Electro Arctic,” and “Punk Lipstick.” (© Swarovski)
New York—The long-term growth of the lab-grown diamond market lies in fashion jewelry and industrial applications, one industry analyst said in a forecast released last week.
New York-based diamond industry analyst Paul Zimnisky predicted lab-grown diamonds will constitute 12 percent of the diamond jewelry market by 2025, up from 8 percent in 2021 and 3 percent in 2018, when De Beers shook up the market with the introduction of Lightbox.
(These percentages represent lab-grown diamond value at retail as a percentage of the total polished diamond value at retail, i.e., lab-grown and natural.)
As the market for man-made diamonds grows, however, it appears to be “stratifying,” Zimnisky said, with producers adopting more specific business strategies rather than focusing on “disrupting” the natural diamond industry.
Some producers are intent on creating branded diamonds grown using more sustainable methods to differentiate their product.
Others are making diamonds for low-cost fashion jewelry, while some producers have turned their attention to growing diamonds for industrial purposes.
In the long term, the growth of the market is likely to come from this lower-cost fashion diamond jewelry—not from bridal—as well as from diamonds grown for industrial purposes, such as medical equipment, energy storage, or semiconductors.
Related stories will be right here …
New York-based diamond industry analyst Paul Zimnisky predicted lab-grown diamonds will constitute 12 percent of the diamond jewelry market by 2025, up from 8 percent in 2021 and 3 percent in 2018, when De Beers shook up the market with the introduction of Lightbox.
(These percentages represent lab-grown diamond value at retail as a percentage of the total polished diamond value at retail, i.e., lab-grown and natural.)
As the market for man-made diamonds grows, however, it appears to be “stratifying,” Zimnisky said, with producers adopting more specific business strategies rather than focusing on “disrupting” the natural diamond industry.
Some producers are intent on creating branded diamonds grown using more sustainable methods to differentiate their product.
Others are making diamonds for low-cost fashion jewelry, while some producers have turned their attention to growing diamonds for industrial purposes.
In the long term, the growth of the market is likely to come from this lower-cost fashion diamond jewelry—not from bridal—as well as from diamonds grown for industrial purposes, such as medical equipment, energy storage, or semiconductors.
Zimnisky points to Pandora’s “Brilliance” line, which starts at $350 and was introduced to “democratize” diamonds, and Swarovski’s proprietary colored lab-grown diamonds as examples of two major brands going the fashion route.
On the industrial side, he noted the new 10-million-carats-per-year factory the Diamond Foundry—which emerged onto the scene as a major “disruptor” of the natural diamond market—is building in Spain will focus on growing diamonds for the tech market.
Overall, the market for industrial diamonds is just a lot bigger than the market for man-made diamond jewelry, Zimnisky said, and the industrial end user cares far less whether the diamond they have is lab-grown or natural.
“With industrial applications for diamond, the lower-price option will theoretically win out as long as performance is comparable.
“With diamond jewelry, as is the case with luxury more generally, the consumer rational for purchase is not nearly as practical and is often influenced by more intuitive factors, like emotion or an affinity for rarity,” he concluded.
For the full report, visit Zimnisky’s website.
More on Lab-Grown
The Latest
MajorsJul 26, 2024
Diamonds Direct Opens Store in AtlantaIt’s the Signet-owned banner’s first location in Georgia.
TrendsJul 26, 2024
Piece of the Week: Bea Bongiasca’s ‘Double Loop’ EarringsCommemorate “brat summer” with these green hoops.
EditorsJul 26, 2024
Out & About: A Dispatch from the Nation’s Smallest StateEditor-in-Chief Michelle Graff returns from Rhode Island with thoughts about in-store shopping and a trends report.
Brought to you by
The End of an Era? Lab-Grown Diamonds' Journey Towards Price StabilityAs the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.
Supplier BulletinJul 25, 2024
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionSponsored by Gemological Institute of America
Weekly QuizJul 25, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
TechnologyJul 25, 2024
Amazon, BBB Sue Website Allegedly Peddling Fake Reviews They claim ReviewServiceUSA.com was selling both positive and negative reviews of products and businesses.
SourcingJul 25, 2024
De Beers’ H1 Revenue Falls 21% in ‘Weak’ MarketLab-grown diamond sales in the United States and ongoing economic challenges in China are impacting natural diamond demand.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionGIA®’s most advanced microscope has new features to optimize greater precision and comfort.
IndependentsJul 25, 2024
Store Designer Ruth Mellergaard DiesA longtime member of IJO, she’s remembered for her passion for design, learning, and environmentalism.
FinancialsJul 25, 2024
Boucheron, Pomellato Post Double-Digit Growth in Q2 The gains come amid a tough time for parent company Kering, which saw sales slide 11 percent in the first half of the year.
MajorsJul 25, 2024
Shane Co. Partners With Kids In Need Foundation to Donate 7,200 BackpacksThe fine jewelry retailer filled backpacks with back-to-school essentials for students in 13 states.
FinancialsJul 24, 2024
LVMH’s First-Half Jewelry, Watch Sales Dip 5%Tiffany & Co. is focusing on its “iconic” collections while the company has made changes at the top at TAG Heuer and Hublot.
MajorsJul 24, 2024
See Chaumet’s Paris Olympic Medals Inspired by its High JewelryThe Parisian brand is the first jewelry company in the history of the Olympic and Paralympic Games to design the medals.
MajorsJul 24, 2024
Jewelers Mutual Acquires Pawnbroker Insurance ProviderUnion Life & Casualty will join JM Insurance Agency Partners, expanding the provider’s pawnbroker coverage.
MajorsJul 24, 2024
Ben Bridge Announces 2024 Lonia Tate Scholarship WinnerLos Angeles-based Bradlei Smith was selected for this year’s award.
ColumnistsJul 23, 2024
Peter Smith: The Case for Optimism in Sales In his latest column, Smith shares multiple reasons why people who look at the glass as being hall full often make better salespeople.
SourcingJul 23, 2024
De Beers’ Production Drops 15% in Q2The company also reported the $150 million sale of an iron ore royalty right, part of its ongoing effort to divest “non-core” assets.
IndependentsJul 23, 2024
Long’s Jewelers Is Giving Away a Luxury Cape Cod VacationThe giveaway is part of the New England jeweler’s summer bridal event.
CollectionsJul 23, 2024
Guzema Debuts ‘Flower Power’ CampaignThe ad features three celebrity florists creating floral sculptures while wearing jewelry by Guzema.
Policies & IssuesJul 23, 2024
Diamonds Do Good Announces Its 2024 Entrepreneurship Grant WinnersThe grant provided a total of $100,000 to support 13 entrepreneurs from diamond communities in Africa and India.
CrimeJul 22, 2024
Florida Jeweler Shot, Killed Following Argument With CustomerGhazi Michel Osta, or “Gus,” was killed Friday by an 83-year-old man said to be a frequent customer at his store, Volusia Gold & Diamond.
Policies & IssuesJul 22, 2024
JVC’s Elyssa Jenkins-Pérez Joins RJCThe organization also announced Effie Marinos as its new specialist advisor for technical standards, as well as four other appointments.
SourcingJul 22, 2024
AWDC Names Karen Rentmeesters as CEORentmeesters has served as interim CEO since April following former CEO Ari Epstein’s resignation.
IndependentsJul 19, 2024
Longtime D.C. Jeweler Brian Mann Dies at 70Mann, whose family’s jewelry store was located inside the Pentagon, is remembered for being a thoughtful champion of the industry.
IndependentsJul 19, 2024
The 1916 Company Opens New Tudor BoutiqueThe 500-square-foot boutique is located in Denver’s Cherry Creek Shopping Center.
CollectionsJul 19, 2024
Piece of the Week: Messika’s ‘So Move Max’ NecklaceDance all night long with the “So Move Max” set’s necklace.
WatchesJul 18, 2024
TAG Heuer, Hublot Will Have New CEOs Luxury giant LVMH is reshuffling the leadership in its watches division.
