Lab-Grown

Analyst: Fashion Jewelry, Industrial Uses Will Drive Lab-Grown Diamond Demand

Lab-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 … 

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.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

SurveysMay 19, 2022
5 Predictions for Jewelry Retail in the Second Half of 2022

From a slowdown in sales growth to rising costs, Fruchtman Marketing outlines its expectations for the second half of the year.

MajorsMay 19, 2022
As It Nears 75, Here’s How Grandview Klein Stays Competitive

Once a part of Julius Klein Group, the diamond company combines its direct supply and cutting expertise with a keen eye to the future.

SourcingMay 19, 2022
De Beers’ Rough Sales Up 21% So Far This Year

One analyst cited rising diamond prices and the sanctions on Alrosa as contributing factors.

Brought to you by
Dive into GIA’s Pearl Expertise

When it comes to knowing the identity and quality of your pearls, count on GIA as your independent pearl experts.

CollectionsMay 19, 2022
Brilliant Earth Collaborates with Jade Trau

The two have partnered on a capsule collection.

Weekly QuizMay 19, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
MajorsMay 19, 2022
Jewelers Mutual Adds 2 Industry Veterans to Its Board

John A. Green of retailer Lux Bond & Green and Niveet Nagpal of Omi Privé have joined the board of directors as of May 18.

FinancialsMay 18, 2022
Watches of Switzerland’s Jewelry Sales More Than Doubled in Q4

The retailer also said demand for Rolex, Patek Philippe, and Audemars Piguet watches continues to exceed its supply.

Brought to you by
A.I. Grading is Changing Conversations at the Retail Counter

Advanced technology levels the playing field, helping jewelers give customers what they want.

AuctionsMay 18, 2022
Jewels from Bette Midler Are Headed to Bonhams

The auction house’s upcoming sale also includes collections from American heiresses.

IndependentsMay 18, 2022
Jeweler Lewis Baribault Celebrates 50th Work Anniversary

The Connecticut jeweler reflected on five decades in the industry and what the future holds for the family business.

Events & AwardsMay 18, 2022
Visit A Mine in New Jersey With WJA New York Metro

The chapter has organized a day trip to the Sterling Hill Mine and Museum in Ogdensburg on Saturday, May 21.

SourcingMay 17, 2022
A New Source in Tanzania Is Producing Cobalt-Blue Spinel

The stones come from a deposit close to Mahenge and have been on the market for several months.

SourcingMay 17, 2022
‘Pop’ the Question With Stephanie Gottlieb’s New Diamond Cut

The jewelry designer is partnering with popcorn brand Angie’s Boomchickapop on a whimsical diamond cut.

ColumnistsMay 17, 2022
What You Need to Know About the Google Analytics 4 Rollout

In the latest article from The Smart Lab, Emmanuel Raheb outlines the website changes jewelers can expect with this new software.

TechnologyMay 17, 2022
Virtual Diamond Boutique Uncorks the ‘Sales Genie’

The new app allows salespeople to quickly and easily access a lot of inventory.

Events & AwardsMay 17, 2022
‘Cartier and Islamic Art’ Exhibition Opens in Dallas

Following its Paris debut, “Cartier and Islamic Art: In Search of Modernity” has landed at the Dallas Museum of Art.

IndependentsMay 16, 2022
Mejuri Plans to Triple Its Store Count This Year

The fine jewelry brand expects to open 17 new locations, mostly in North America.

IndependentsMay 16, 2022
Karats Jewelers Plans Expansion Into 30,000-Square-Foot Store

The Kansas retailer is aiming for a fall 2023 opening.

MajorsMay 16, 2022
Pandora Announces Plans to Build Third Factory, First Outside Thailand

It will be located in Vietnam’s Binh Duong Province, and construction is slated to start early next year.

IndependentsMay 16, 2022
MJSA Has Released its 2022 Buyer’s Guide

It’s full of hundreds of contacts for jewelry-making supplies and services.

FinancialsMay 13, 2022
Brilliant Earth Reports Strong Q1 But Lowers 2022 Guidance

The company is feeling the impact of the uncertain geopolitical and macroeconomic environment, said CEO Beth Gerstein.

AuctionsMay 13, 2022
Famed Watch Designer Gerald Genta’s Royal Oak Sells for $2.1M

It became the most valuable vintage Audemars Piguet watch ever sold at auction, according to Sotheby’s.

TrendsMay 13, 2022
Piece of the Week: Renna’s ‘Caspian’ Pendant

It’s a sneak peek of the newness that will be on display at the Couture Show next month.

MajorsMay 13, 2022
Diamond Club West Coast Names 2022 Board

Moshe Salem was re-elected as president, but there is a new treasurer, secretary, and board members.

AuctionsMay 12, 2022
‘The Rock,’ the Biggest White Diamond Ever Put Up for Auction, Sells for $22M

The 228-carat stone came in at the low end of its estimated range while “The Red Cross Diamond” exceeded expectations at $14.3 million.

Events & AwardsMay 12, 2022
Julie Lamb Is FGI’s 2022 ‘Rising Star’ in Fine Jewelry

The New York City native was honored at the annual Fashion Group International awards ceremony, held Tuesday night.

IndependentsMay 12, 2022
Three Jewelry Buying Groups Form New Alliance

The Independent Jewelers Organization, the Company of Master Jewellers, and Nationwide Jewellers have formed the Global Jewellers Network.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy