The diamond industry has moved from a relatively stable environment to a highly uncertain environment, with 2019 and the years ahead seeing lab-grown diamonds for jewelry entering a growth phase, said ABN AMRO Bank in a report.
The concept of lab-grown diamonds was not new. Lab-grown diamonds were already used for industrial purposes. 99% of all the industrial diamonds are lab-grown diamonds. Lab-grown diamonds are already there for some years (also for jewelry purposes) but because of De Beers’ Lightbox announcement it has become more legitimate. There are several reasons for this. For a start, De Beers fought various court battles that their unit Element Six (the unit of De Beers that designs, develops and produces lab-grown diamonds) holds the technology. For a while De Beers was successful in limiting competition through the ownership of lab-grown diamond technology. Recently, more producers have been able to produce lab-grown diamonds.
As a result, competition in the technology for lab-grown diamonds has taken off.
We think that 2019 and 2020 will be the years that lab-grown diamonds take off and move from an introduction phase (2018) to a growth phase. Lab-grown diamond producers have been able to produce larger and better-quality lab-grown diamonds. Moreover, more companies and persons in the diamond industry are willing to jump on the lab-grown diamond experience.