Lab-grown diamonds have started to make a substantial place in the market. After some initial hesitation owing to lack of education & awareness, Lab-grown diamonds have been adopted by eco-conscious jewelers as well as customers and celebrities. Moreover, production of diamonds for various industrial uses have increased resulting into advancements and discoveries of usage of diamonds to solve technological problems.
Transparency taking centre stage for Lab-grown diamonds
In a conversation with Professional Jeweler, Thierry Silber of Madestones, talked about the benefits of Lab-grown diamonds and its trends in the industry. He says that the main customers of Lab-grown diamonds are the millennials who are eco-conscious and look for affordable budgets. He added that there was a 3% spike in the market share of Lab-grown diamonds in 2017. Transparency by the retailers is turning out to be a key success area for the growth of Lab-grown diamonds market. According to a report by Morgan Stanley, market share of Lab-grown diamonds in the global diamond industry is going to rise from 3 to 7% by 2020.
Focusing on the fact that a Lab-grown diamond has the exact same properties as a mined diamond, Silber says, “At Madestones we believe that the point of origin of a diamond is not the most important when diamonds or jewelry are bought or offered. Everything starts with the beauty of the diamond. 70% of the sale will be done when consumers will see that both diamonds are equally beautiful and when it is impossible to see any difference with the naked eye or even with the loupe. And importantly, diamonds get their true value from the romance and symbolism that people attach to the moment or the occasion for which they are offered.”
To support the transparency factor, recently the Gemological Institute of America (GIA) launched a diamond scanner machine at Stuller, a diamond supplier.
Stanley Zale, Vice President at Stuller says, “GIA is here to give our customers the highest level of assurance that they’re buying exactly what we say they’re buying. It’s incumbent on all of us to have a strict and vigilant quality-assurance program, and to have the highest level of assurance that we are correctly representing the product we’re selling.”
High-tech diamond enterprise to come up in Moscow
Adding to the Lab-grown diamonds’ manufacturers mushrooming around the world, a high-tech diamond enterprise with an area of over 11,000 sq. mts. is coming up in the capital city of Russia, Moscow. The plot has been approved by the Complex of Economic Policy and Property and Land Relations of the Government of Moscow for the construction of the technology park.
The park will have a research centre and a production complex. The project is estimated to get funding of about 2.8 Bn Roubles (USD 45.5 Mn) financed by private investors.
Lab-grown diamond production & market share soars
According to newspaper les Echos, within 4 years, the production of Lab-grown diamonds soared from 350,000 to 2.5 million carats. It has also been estimated that the production may reach around 4.5 million carats by 2018. It is forecasted that by 2023, Lab-grown diamonds’ market would be worth USD 28.59 billion growing at a CAGR of 7.65%.
Lab-grown diamonds are segregated based on products by bort, dust, grit powder and stone. By value, the stone segment accounted for more than 90% share of global Lab-grown diamond market in 2016. Stones are majorly used for industrial applications.
Lab-grown diamonds will experience growth over the years owing to the increasing demand in electronics industries and regulations and environmental factors related to mining of diamonds. It has been noted that Asia-Pacific has the largest market for Lab-grown diamonds and has accounted for 45% revenue share alone in 2016.