Lab made diamonds are the new trend in the diamond industry. We continuously see a rising trend in the use and adaption of diamonds made in laboratories. People are becoming aware of lab diamonds and their stark similarity with naturally mined diamonds. The similarity in physical, chemical, and optical properties of lab and mined diamonds has made it easier for people to switch to diamonds made by labs. Also, the cost-effectiveness and budget-friendly price of these diamonds have added fuel to the fire!
To cater to the industrial tech market by mid-decade, the lab grown diamond industry pioneers, Diamond Foundry reportedly plans to build a 10 million carats per annum plant; Pandora, the world’s largest fashion jeweler is promoting the lab diamonds industry as a more sustainable industry rather than the one that was “disrupting” the natural resources just years back.
Welcome to the world of lab grown diamonds market. Let us delve into the market share of lab made diamond industry by 2025. Since high-quality lab made diamond jewelry began hitting the market, production methods of lab diamonds have greatly improved, the number of suppliers has increased, and many retailers have begun to test and, in most cases, started fully adapting these diamonds. The growth and popularity of man made diamonds started first in the United States of America.
The production of lab created diamonds for use in jewelry has increased from just a few hundred thousand polished carats per annum four or five years ago to almost three million polished carats in 2021, worth almost two-dollar billion. Two-dollar billion is estimated to increase to $4 billion by 2025. As the industry of lab diamonds is growing, the producers of these diamonds are taking different approaches to produce and position their products.
In India, it can be seen that there has been an increase in the production of lab grown diamonds owing to their cost-benefits in the country. Indian lab grown diamond manufacturers use subsidized energy, which is the greatest variable cost of lab grown diamond manufacturing, and have access to the industry's biggest production hub. In China, for high-pressure high-temperature diamonds (HPHT), producers are upgrading their technology and production methods to manufacture higher and better-quality laboratory diamonds to compete with more modern carbon vapor deposition diamonds (CVD).
Recently, it has been studied that lab grown diamond growers has increased in their market share since many people are choosing to buy diamonds made in labs due to their cost-effective and budget-friendly costs. Based on a survey, a customer can buy a better-than-average quality 2.15-carat Lab Created Diamond equivalent to 1.00-carat naturally mined diamond. The difference in prices between man made diamonds, and naturally mined diamonds has widened in recent years. A few years ago, there was only a difference of 10-15 percent in price, but now the difference has increased up to 75 percent plus. To put it simply, you can get the same quality diamonds of bigger carats at a more economical cost in lab diamonds, whereas you have to probably go beyond your means to buy a bigger carat natural diamond.
While it is likely that most companies will use good marketing strategies to promote their lab grown diamonds as the most premium quality, however, it is forecasted that in the coming years, these diamonds will be marketed more as "fashion jewelry". For instance, Pandora's new line of diamonds, marketed as Pandora Brilliance, is trying to normalize diamonds as per their marketing strategy. The collection of Pandora Brilliance starts at 350 dollars and includes pendants, earrings, bracelets, and rings. Another iconic fashion brand, Swarovski, recently launched colored lab made diamonds available in various proprietary colors- colors that are not normally available in naturally mined diamonds.
Looking at the long-term growth of the diamonds made in laboratories, the rapid increase in applications of diamonds in industries will push the growth of the lab grown diamonds market. The use of diamonds in industries such as thermal management devices, medical equipment, energy storage, or semiconductors, alone a half-trillion-dollar industry, will help grow and expand the lab diamond industry. Diamond Traders will also play a crucial role in this expanding market.
We have seen an exponential rise in the growth of lab grown diamonds market. People are becoming increasingly aware of the advantages of purchasing lab created diamonds. An increase in the use of sustainable and eco-friendly products has also helped increase the popularity of these diamonds and their adaption.
By 2025, the market of lab made diamonds will grow by almost four billion dollars. Production of high-quality diamonds coupled with advanced technology has widened the customer base of these diamonds. The considerable difference in price by almost 75 percent has also helped achieve a loyal customer base of lab made diamonds. Their natural counterparts are expensive, and you probably have to go beyond your budget to afford this piece of luxurious gemstone. Due to the increase in demand for lab made diamonds, the production increased to three million polished carats compared to a few hundred thousand polished carats just a few years ago.
The value of three million polished carats is almost dollar two billion. An increase in suppliers and retailers was also seen in recent years. In China, the producers of High Pressure High Temperature (HPHT) are also upgrading their technology to be at par with modern Carbon Vapor Deposition diamonds or CVD diamonds. Lab made diamonds are here to stay and will dominate the diamond industry in the coming years.