Lab Grown Diamonds – An Overview Of The Market Share
In 2020, the market share of the lab grown diamonds on a global level was valued at $19.3 billion and is estimated to reach $49.9 billion by 2030. This rise means a CAGR of 9.4% from 2021 to 2030. The CVD diamonds have controlled a huge part of the lab grown diamonds market in 2020 and are expected to maintain their control through the period forecast.
As is evident from the name, lab grown diamonds are produced in factories and laboratories. Diamonds grown in labs and mined diamonds are similar in composition and appearance. Lab grown diamonds are manufactured using the carbon vapor deposition (CVD) method and the High Pressure and High Temperature (HPHT) method. Diamonds made in laboratories are generally better in terms of quality when compared to natural diamonds since they are made in a controlled environment with constant quality control and monitoring. The environment where diamonds are grown in labs mimics the entire atmosphere of the earth's crust where natural diamonds are formed. Laboratory grown diamonds are becoming increasingly popular in the fashion and jewelry sectors due to a rising trend in their use. One can customize lab grown diamonds as per your needs; it adds to its benefit besides being cost-effective, ecologically sound, and sustainable.
Review Of The Market Share Of Lab-Grown Diamonds
Though man made diamonds occupy a small percentage of the overall diamond industry, it is expected to rise in the coming years. We can see an upward curve in the adaption of lab made diamonds since more and more people are bending towards buying this sustainable and exquisite piece of stone. Before 2018, the sales of jewelry made with man made diamonds came at less than $1 billion, making less than 1 percent of the entire diamond industry globally. It is studied that the United States of America makes up 90 percent of the lab made diamond industry. The estimates of Golan for 2018 predicted that the sales of lab grown diamonds in the US were less than 1.5% of all the diamond sales in the country.
In the following year, the figure of 1.5 percent grew up to 2 percent and continued to grow in the upcoming years since more and more brands have come online. By 2020, the market share of lab grown diamonds increased to 3.5 percent, and by 2022, this figure grew to 5 percent. The rapid growth in the market share of diamonds made in labs indicates growth in consumer awareness and the acceptance of the product globally. It was calculated that the overall business of lab made diamonds in 2021 was $3.9 billion. By seeing these figures, there is no doubt that lab made diamonds' market share will continue to rise since produces are increasing their supply. Many famous man made diamond manufacturers such as Signet and Pandora are increasing their lab made diamonds' inventory.
The Market Of Lab Made Diamonds In 2022
It is calculated that in 2022, diamonds made in labs will occupy a market share of 7 percent of the diamond industry. The sales of lab made diamond jewelry in 2022 will be approximately $8 billion-plus, making the share of lab made diamonds close to 10 percent. By 2023, it is predicted that lab made diamond jewelry sales could rise to the $10 billion mark.
Who Are The Target Consumers For Lab Grown Diamonds?
One of the biggest confusions of lab made diamonds is that consumers will buy these diamonds as a piece of fashion jewelry or will be preferred more by the to-be brides. Presently, 60 percent of man made to-be brides buy diamond jewelry. Since the cost of man made diamonds are economical and very cost-effective, people prefer buying lab made diamonds over natural CVD diamonds since it does not burn a hole in their pocket. But if you look at the market share by the number of units sold in bridal and a piece of fashion jewelry, the number comes at 50-50. Although lab grown diamonds occupy a massive share in the bridal sector, their share will continue to rise as a piece of fashion jewelry in the coming years.
The Effect Of Price On The Market Share Of Lab Made Diamonds
The prices of lab grown diamonds fell last year, whereas the cost of natural diamonds rose by 30 percent. The difference in prices also widened the gap between these two categories. Presently, lab grown diamonds of the same quality and appearance cost 75-85 percent less than naturally mined diamonds. So is lab grown diamonds taking away the sales of mined diamonds? The answer is yes. Since more and more people are becoming increasingly aware of lab made diamonds and their added benefits, they prefer to buy more laboratory made diamonds.
Effect Of Covid 19 On The Diamond Jewelry Market
Covid 19 caused havoc in every industry possible, and the diamond industry was no exception. The pandemic hurt the lab made diamond market since there was a disruption in the supply chains and exports from countries like China and India. However, there was a surge in demand for online channels due to the closure of brick-and-mortar shops. But there has been a shift in the thinking pattern of people, especially after the pandemic. People, especially the millennials, prefer to buy more eco-friendly products. Thus, there will be a rising trend in lab made diamonds since the focus is now on sustainable products.
Cost-effective, sustainable, and environmentally friendly are some of the benefits of man made diamonds. Diamonds grown in labs provide the same chemical, physical, and optical properties as mined diamonds. Man made diamonds are the future, and it is slowly capturing a considerable market share in the diamond industry