Jewelers are increasingly replacing mined stones with lab-made ones

Laboratory diamonds can account for up to 70-80% of jewelry production. The number of laboratory-produced diamonds on sale has increased to 10%. This is double what it was two years ago. Within three years, their number will double again, and in the future they will occupy almost the entire market.

At the same time, the production of laboratory stones takes little time. More and more people prefer to buy lab grown diamonds online because such stones are cheaper, stronger and easier to cut. In some countries, for example, in the USA, the share of “laboratory” products on store shelves reaches 30%. 

Care from nature

The jewelry company Pandora has stopped using mined diamonds. The day after the announcement, its shares jumped 9%. The company explained its decision by saying that the abandonment of mined stones will make jewelry accessible to a wide range of buyers due to lower prices.

The last time the topic of lab-grown diamonds was heard as loudly was in 2018, when diamond giant De Beers launched a new jewelry brand that uses only lab-grown stones. The fact that such a step was taken by a leading company in the field of diamond mining and the production of expensive diamond jewelry launched a new trend.

Representatives of De Beers emphasize in all interviews that “laboratory” andmined stones belong to different market segments. In the consumer market, the zones of presence of mined diamonds and those synthesized in laboratory conditions are already clearly defined. 

The environment is suffering

The popularization of “laboratory” stones is fueled by the environmental aspect. The extraction of mined diamonds involves the development of open quarries and affects natural ecosystems. The diameter of such quarries sometimes exceeds 1 km, and the depth reaches 500 m; as a result, the fertile layer of soil and vegetation are destroyed, and the lands become unsuitable for wild animals. This state of affairs leaves an imprint on the image of diamond miners.

However, diamond mining means hundreds of thousands of jobs around the world, including in the poorest regions of the world. Diamond mining companies carry out serious environmental work and restore natural ecosystems after mining deposits.

Price difference

Technology will displace mined diamonds. Reducing the price of laboratory equipment and the speed of their production will allow them to occupy up to 80% of the market.

Diamonds still occupy less than 1/4 of the global jewelry market. Everything else is other jewelry, including costume jewelry, jewelry with artificial inserts or without them at all. In terms of pieces, the share of diamonds is even less - only 2% of all jewelry sales in the world per year. This market is very capacious, and end consumers themselves have identified a place in it for “laboratory” ones, just as it once was with moissanite, cubic zirconia, and zirconium (artificial crystals that resemble diamonds in their brilliance). Each of them has its own market niche, they all find their consumer and peacefully coexist with each other and other decorative inserts, and the buyer has plenty to choose from depending on the situation and mood.

The rarity of mined stones and the difficulty of their extraction will influence the rise in their price. The gap in the cost of natural and laboratory stones will increase, including due to the rise in price of the former.