Recent market reports and feedback from our members tells us that lab-grown diamonds are moving in the right direction.
Last year, we heard some 'estimates' from industry experts who believed that lab-grown diamond sales will more than double from current levels over the next 10 years. While promising, this seems a rather guarded estimate compared to the forecast from Morgan Stanley. According to them, lab-grown diamonds could take a 15% market share in gem-quality melee diamonds and a 7.5% share in sales of larger diamonds by 2020.A recent ABN AMRO Bank report acknowledged that lab-grown diamonds for jewellery segment are entering the growth phase fueled by consumers’ growing demand. The market for lab-grown diamonds, according to another report, could grow to between 10 million and 17 million carats by 2030!
And all of this is without any big marketing thrust since lab grown diamond industry is still a tiny fraction of the mined diamond business. There have been attempts to write off lab-grown diamonds into the low-cost ‘fashion’ category but that doesn’t seem to be working as consumers are happy to pick lab-grown diamonds as bridal options.
In past, Tom Moses, GIA Executive Vice President and Chief Laboratory and Research Officer, has openly accepted that ‘laboratory grown diamonds are now a fact of life for the industry.’ It’s now obvious for all.
The International Grown Diamond Association (IGDA) commissioned a market survey in Fall 2018 that was conducted by MVI Marketing. Over 1,700 consumers who either recently bought or were in the market to buy diamond jewelry were interviewed with MVI also weighing in responses to similar studies they have been conducting since 2010.
The awareness of lab-grown diamonds has grown from less than 10% to well over 50% in the last 5 years and nearly 90% of those actually in the market today for an engagement ring said they would consider and/or definitely buy a lab-grown diamond. (The full MVI market study report is available for download) Lab-grown diamond companies say demand for larger lab-grown diamonds, the kind mostly reserved for center stones in engagement rings, continues to outstrip supply – which corroborates IGDA’s report about consumers recognizing value in lab-grown diamonds. In the end, consumers are the clear winners – they get to choose their diamonds at attractive prices and wider quality range.