Lab-Grown Diamonds: A Game Changer in the Diamond Industry

The diamond industry is undergoing a seismic shift, driven by the rising popularity of lab-grown diamonds. Once considered a niche alternative, these scientifically engineered gems are now mainstream, offering a more affordable and ethically sourced option compared to their natural counterparts. This surge in demand is putting pressure on the traditional diamond market, challenging industry norms and reshaping consumer preferences.

Lab-grown gems putting pressure on the diamond industry

Lab-grown diamonds are chemically, physically, and optically identical to natural diamonds. They are created using advanced technological processes that replicate the conditions under which diamonds form in the Earth’s mantle. As a result, they offer the same brilliance, hardness, and durability as mined diamonds, but at a significantly lower price point.

With consumers becoming more conscious of sustainability and ethical sourcing, lab-grown diamonds are increasingly seen as a viable alternative to mined stones. This shift in preference is sending shock waves through the traditional precious gems market, compelling industry players to adapt to evolving trends.

Why You Need Expert Guidance When Buying Diamonds

While lab-grown diamonds present an attractive option, navigating the diamond market—whether natural or lab-created—requires expert guidance. With the influx of synthetic diamonds, ensuring that you are purchasing a high-quality stone from a reputable source is crucial. This is where independent diamond certification becomes essential.

DCLA: Sydney’s Most Trusted Diamond Laboratory

When it comes to protecting your investment and ensuring the authenticity of your diamond, the Diamond Certification Laboratory of Australia (DCLA) in Sydney is the best option. DCLA is one of the only internationally recognised and independent diamond grading laboratories in the world, adhering to strict grading standards to provide unbiased, accurate diamond certification.

Source: DCLA

Swarovski bullish on lab-grown diamond business

Austrian jewelry brand Swarovski’s entry into the lab-grown diamond sector has seen a positive reception in the China market, signaling growing consumer acceptance and confidence in the product category, said a senior executive.

Since the launch of Swarovski Created Diamonds Swarovski’s lab-grown diamond product line in April, the company has found that Chinese consumers are gradually accepting the concept of laboratory-grown diamonds, which gives the brand huge confidence in the market, said Yvonne Chan, president of Swarovski Crystal Business Greater China.

Chan added that as the market has responded accordingly, the brand has seen a steady growth in sales figures. “In some of the better-performing stores, sales of Swarovski Created Diamonds jewelry can account for as much as one-fourth of the store’s jewelry sales,” she said.

The consumption of diamonds is diversifying and is no longer limited to bridal occasions, with an increasing number of female consumers showing interest in “self-rewarding “diamond purchases and usually more for daily wear occasions, Chan said.

“We believe lab-grown diamonds are ‘the diamonds of the future’, and that’s why they represent a strategic growth category for Swarovski,” she said.

According to data from consulting firm Bain & Company, China’s rough cultured diamond sales reached 1.4 million carats in 2021, with a market penetration rate of 6.7 percent. The figure is expected to reach 4 million carats by 2025, with a market penetration rate of 13.8 percent.

“We are delighted to be one of the first global brands to launch lab-grown diamonds in China in April, which marks a significant milestone in the company’s global rollout of fine jewelry collections,” Chan said. “China is undoubtedly one of Swarovski’s most important markets globally. Swarovski has long-standing ties of business and friendship with China that were forged three decades ago.”

Lab-grown diamonds, created by simulating the natural growth environment of diamonds, are high-quality synthetic gems with jewelry application value, said Sun Zhaoda, secretary-general of the superhard materials branch of the China Machine Tool and Tool Builders’ Association, adding that the emerging jewelry category is growing rapidly due to its eco-friendly and sustainable characteristics.

According to a recent white paper published by the association, the global cultured diamond supply chain is now largely concentrated in China, India and the United States. China leads in the production of rough cultivated diamonds, with over 22 million carats produced in 2023, accounting for more than 70 percent of global output. India dominates diamond processing, controlling 80 percent of the market, while the US remains the largest consumer market for cultivated diamonds.

“While China’s share in diamond processing is still relatively low, the country is exploring new green development models,” said Sun. “With increasing consumer acceptance of cultivated diamonds in China, the market for lab-grown gems is expected to grow significantly.”

Source: DCLA