Lab-Grown

An Updated Look at the Lab-Grown Diamond Market: Size, Pricing, and More

Lab-GrownSep 21, 2022

An Updated Look at the Lab-Grown Diamond Market: Size, Pricing, and More

As the end of 2022 draws near, National Jeweler offers another deep dive into lab-grown diamond market data.

20220921_LGD-market-update-header.jpg
The U.S. launch of Pandora’s lab-grown diamond jewelry collection has been one of the biggest factors influencing the market this year, one analyst said. Pictured is a necklace from the collection, which is available in 14-karat yellow gold and sterling silver. Prices start at $300 retail.
New York—The lab-grown diamond market continues to expand with no signs of slowing down.

Earlier this year, National Jeweler examined the estimated size of the market and talked to experts about where it might go in the future, as well as what could drive growth.

As 2022 draws to a close, here’s an updated look at how the year panned out and where opportunities lay in 2023 and beyond.

An Updated Outlook
Diamond market analyst Paul Zimnisky told National Jeweler earlier this year lab-grown jewelry sales could near $8 billion-plus in 2022, approaching 10 percent of the total global diamond jewelry market.

Amid robust consumer demand for lab-growns, Zimnisky has now increased his forecast to $9 billion-$10 billion, which would see lab-grown diamond jewelry accounting for more than 10 percent of total global diamond sales, according to his model. 

Market research firm The MVEye also monitors the lab-grown diamond sector. 

It currently estimates that the market accounts for 8-10 percent of diamond jewelry sales globally.

The U.S. remains the largest consumer market for lab-grown diamonds by far. Zimnisky said it represents about 80-plus percent of lab-grown diamond jewelry demand, compared with about 50-plus percent of total global diamond jewelry demand.  

Sherry Smith from data and consulting company The Edge Retail Academy, which tracks independent jewelers’ sales, offered the following data from the January-June period. 

Lab-grown loose diamond sales represented 7 percent of total retail loose sales, an increase from 5.3 percent over the same period in 2021.

Smith noted that larger lab-grown diamonds showed significant increases in most of the key performance indicators.

The 3.25- to 3.50-carat range, for example, showed a 194 percent increase in gross sales, a 114 percent increase in units sold, and a 25 percent increase in average retail sale, suggesting some customers might be trading up in size from smaller natural diamonds. 

The 4.5- to 5-carat range recorded a spike of 582 percent in gross sales, and sales in the 5.5- to 6-carat rose 78 percent. 

But, Zimnisky said it’s important to keep in mind that lab-grown diamonds are also creating incremental demand for diamond jewelry that wouldn’t otherwise exist.

“Going into the future, I believe that this incremental demand will continue to grow while the share of lab-grown diamonds directly cannibalizing natural will stabilize.

“Once lab-grown diamonds as a product reach maturity, I believe consumers will likely view natural and lab-grown as distinct products, so demand for [the latter] will be driven much more by marketing and not product availability.”

What’s Shaping the Market
The big milestones for the sector this year have come from the major companies, Zimnisky said—Signet has really begun to push the product, and Pandora launched its new lab-grown line in the U.S. 

Signet officially got into the lab-grown game a few years back, but this year has started investing in stocking and marketing the sector in a big way. 

 Related stories will be right here … 

Pandora, meanwhile, tested its lab-grown diamond jewelry exclusively in the U.K. last year before deciding to bring the product to the U.S. market, its largest, in August of this year

Both developments will greatly increase the visibility and availability of lab-grown diamonds in the U.S.

Looking ahead, while Zimnisky initially predicted global lab-grown diamond jewelry sales could near the $10 billion mark by 2023, he said he’s now forecasting they will surpass that milestone next year.

Pricing in 2022
Lab-grown diamond prices generally have continued to decline over the last five to seven years, Zimnisky said, adding that as production capabilities improve and global production volume increases, the trend is likely to continue. 

He said higher energy prices around the world could stabilize nominal prices in the short term since that input cost is passed on from the producers.

But there’s also been an interesting update for the sector from India—the Indian government has formalized a policy to finance lab-grown diamond producers to help stimulate exports.

News broke in early August that the State Bank of India, the country’s biggest bank, had become the first Indian lender to come up with a formal policy to fund growers.

The loans reportedly come with certain conditions, such as funding the import of machinery rather than supplying working capital.

The move is “a significant catalyst and is likely to lead to a further boom in lab-grown diamond production volumes,” according to Zimnisky, which would continue to affect prices.

What Will Propel the Market
In fact, Zimnisky names increased production/limitless supply as one of the four factors he expects to drive the lab-grown diamond sector’s next phase of growth in a new report.

In addition to limitless supply, he also cited higher quality, branding and proprietary design, and custom shapes and colors.

As production ramps up, diamond-producing technologies will continue to improve, increasing the general quality of the stones but potentially exacerbating the decline in prices.

“Eventually, almost all man-made diamonds will likely be of a universal high quality, which could render grading of lab-diamonds non-necessary ... [which would] further reduce the price of man-made diamonds relative to natural diamonds for consumers,” Zimnisky wrote.

This means branding and proprietary design and custom shapes and colors will be essential for producers who want their product to compete as a luxury item, he added.

(For more on Zimnisky’s report, see this article by National Jeweler Editor-in-Chief Michelle Graff.)

20220921_LGD-market-update-insert.jpg
Lightbox, De Beers’ lab-grown diamond brand, recently added baguettes and cushion cuts to its selection of loose lab-grown diamonds, citing consumer desire for custom designs featuring fancy shapes.

The MVEye also recently conducted research on the consumer groups they believe will drive the market in the future. 

Two of those consumer groups are 25- to 38-year-old millennials, but one group, called “In the Know” is already aware of lab-growns through friends or media.

The other, “In the Dark,” haven’t heard of lab-grown diamonds but are easily convinced to learn more. 

The MVEye also said it believes a third group dubbed the “Upgraders,” those who are 55 and older and looking to upgrade their engagement rings, could be a powerful segment to propel the growth of lab-grown diamond sales.

This consumer segment is motivated to buy a larger diamond and likes to reward themselves. 

“If retailers could bring that across to them [in ads], saying, ‘OK, it’s time to self-reward,’ that’s how they’re going to go get this group,” co-founder Liz Chatelain said to National Jeweler in a recent interview. 

“It’s a great opportunity, especially for independent retailers who really know their market.”

The Latest

Women’s Jewelry Association Generating Community Impact Breakfast at JCK in Las Vegas 2023
Policies & IssuesJun 07, 2023
Experts Discuss Disability Inclusion at WJA’s Las Vegas Breakfast

Members gathered Friday morning at JCK to hear from Diversability founder Tiffany Yu and Molly Kettle of Gamut Management.

A selection of Citizen Watch America watches
WatchesJun 07, 2023
Citizen to Open New NYC Multi-Brand Flagship

The three-story location will house dedicated spaces for Citizen, Bulova, Accutron, Frederique Constant, and Alpina timepieces.

Rings of Strength Las Vegas 2023
Events & AwardsJun 07, 2023
JFC’s 11th Rings of Strength Event Is in the Books

More than 120 participants walked and ran a 5k to benefit the organization during Las Vegas Jewelry Market Week.

LAB230043_Dossier_NJ_1872x1052_V1.jpg
Brought to you by
The Next Step for GIA Diamond Reports

The most trusted diamond report, available in print or the GIA App.

Peruffo necklace that won the Couture Design Award for “Best in Debuting”
Events & AwardsJun 06, 2023
Meet the 2023 Couture Design Award Winners

The jewelry trade show awarded brands and individuals across 14 categories.

Weekly QuizJun 02, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Sales expert and author Peter Smith
ColumnistsJun 06, 2023
Squirrel Spotting: The Challenge of Closing Sales

Many times, customers walk away without buying because of this one thing salespeople neglect to do, Peter Smith writes.

Grandview Klein Diamonds and Phillipine Angula Development Investments’ Eros Primary School donations
Policies & IssuesJun 06, 2023
Grandview Klein Diamonds, Local Partners Donate to Primary School

The donation to a school in Namibia included computer equipment, infrastructure repair and sanitary wear.

Cover-WN19-Back-&-Front_V5-RGB-(1)_Community.jpg
Brought to you by
Beyond Borders: Crucial Factors in Colored Stone Origin Determination

Navigate origin determination with Continuing Education seminars offered by the GIA Alumni Collective™.

Exterior of the Colorado Convention Center
Events & AwardsJun 05, 2023
HardRock Summit Organizers Gear Up for Third Annual Show

More than 250 gem, jewelry, and mineral companies are expected to exhibit, including the American Gem Trade Association.

Alexandra Rosier gold and opal Eternal Love Hands necklace
TrendsJun 02, 2023
Take a Peek at Couture’s Newest Design Talents

This year’s Design Atelier is full of gems.

Saboo Fine Jewels emerald and titanium earrings
CollectionsJun 02, 2023
Piece of the Week: Saboo Fine Jewels’ Emerald Earrings

They’re a testament to the power of excellent design.

Holly Wesche, Stan Razny, Ingrid Razny, Candy Udell
IndependentsJun 02, 2023
These Are the 2023 Retailer Hall of Fame Inductees

This year’s honorees include one of Florida’s largest independent jewelers and two multi-store independents in the Chicago and New York areas.

Jane Taylor letter pendants
TrendsJun 01, 2023
See 50+ Jewels Debuting at Couture in Las Vegas

The industry’s most influential contemporary designers are showcasing their latest jewelry designs.

Bottom Line Marketing Chief Growth Officer Gus Garcia and CEO Jackie Brooks
MajorsJun 01, 2023
Bottom Line Marketing Announces Restructured Leadership, New Service Offerings

The marketing agency has integrated its first C-suite.

20230306_JohnnyCupcakes.jpg
Events & AwardsJun 01, 2023
Meet JCK’s 2023 Keynote Speaker

The jewelry trade show also will debut educational content centered around social media.

Lauren K gold and gemstone rings
TrendsMay 31, 2023
Here’s a Sneak Peek of New Jewelry to Check Out at JCK

Luxury kicks off today, with the full show in swing on Friday.

A pearl pendant and a pearl ring
CollectionsMay 31, 2023
Verragio’s Debut Fine Jewelry Collections Honor Company Heritage

One of the three new collections was inspired by the legend of a woman who traded her mansion to Cartier for two strands of natural pearls.

Rob Ballew
MajorsMay 31, 2023
Signet Jewelers Names New Head of Investor Relations

Rob Ballew will be tasked with communicating the jewelry giant’s plans and financial performance to investors.

Mobile mock-up screens of the new LUX Digital Vault app from Jewelers Mutual Group
MajorsMay 31, 2023
Jewelers Mutual Launches App for Retailers, Introduces New Brokerage

With the app, customers receive a 15-day insurance offer on new purchases while their coverage needs are being evaluated.

Attendees at the JCK Las Vegas show
Events & AwardsMay 30, 2023
These Are the Can’t-Miss JCK Talks Education Sessions

From consumer trends to retail technology, these are the JCK Talks sessions that should be on attendees’ radar.

Constance “Connie” Barber Mellon’s David Webb Elephant Clip-Brooch
AuctionsMay 30, 2023
Sotheby’s to Auction Mellon Family Jewelry

Signature pieces from Cartier and David Webb will appear in the June jewelry auction.

Georgie Gleim, Shelly Sergent, and Molly Peterson
Events & AwardsMay 30, 2023
24 Karat Club of Southern California Recognizes 3 Honorees

They will be celebrated at the annual dinner dance and gala in the fall.

Historic and modern photos of diamond grading GIA
GradingMay 26, 2023
State of the Diamond Industry: AI and the Future of Diamond Grading

Gemologists have long used machines in diamond grading but technology has made it possible for them to “learn” how to do it on their own.

Supplier Spotlight Webinar John Pollard and Garry Holloway
Recorded WebinarsMay 26, 2023
Watch: Diamond Cut Quality: The Final Frontier Part 2

Supplier Spotlight Sponsored by IGI

My Next Question webinar series episode on selling lab-grown diamonds
Recorded WebinarsMay 26, 2023
Natural and Lab-Grown Diamonds: What It’s Like to Sell Both

Watch retailers Jeffery Bolling and Bobby Bengivengo discuss employee training, customer education and the sticky subject of future value.

Models wearing Calvin Klein watches and jewelry
FinancialsMay 26, 2023
Movado Sales Slip in Q1 Amid Inflation Woes, Tough Comps

The company has plans to revamp the Movado brand and offer less expensive watches this year.

Bulgari necklace set with 118.35-carat unheated Sri Lankan sapphire
AuctionsMay 26, 2023
Piece of the Week: A Bulgari Sapphire and Diamond Necklace

Set with a 118-carat unheated Sri Lankan sapphire, it just sold for $3.4 million at Phillips jewelry auction in Hong Kong.

×

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