According to Marty Hurwitz, CEO of MVI Marketing LLC, “Critical mass of consumer interest is now converging with increasing acceptance of lab-grown diamonds by retailers. This unique moment in time will propel growth for many years to come.” MVI conducted a study in 2019 that indicated that 66% of millennials actively shopping for engagement rings would consider a lab-grown diamond, largely driven by the perception that they can get a larger, better-quality lab-grown diamond for the same or better price as a smaller diamond.
Lab-grown diamonds are not a new concept. They were first introduced in the 1950s. But these diamonds are a relatively new phenomenon in the diamond industry, because it took nearly 50 years to produce lab-grown diamonds with sufficient depth and quality to be used for jewelry purposes. They are made in laboratories using a process called chemical vapor deposition (CVD) or high-pressure-high-temperature (HPHT).
There has been a lot of debate about lab-grown diamonds and how they compare to natural diamonds. Lab-grown diamonds are the same chemical composition as natural diamonds, but they are created under controlled conditions in a production environment.
The reasons people choose lab-grown diamonds are fairly broad. Some consumers like the variety of colors they come in. Fancy pink and blue diamonds do happen in nature, but they are so rare that they are extremely expensive. Color production in the lab is more predictable and controllable, making colorful lab-grown diamonds an affordable choice.
Some people are completely enamored of the technical aspect of lab-grown diamonds. Just as they get excited about a new iPhone, smart watch, or smart home technology, they like the idea of buying a product that is precious and rare in nature, but which humans have figured out how to produce in a laboratory environment.
Some people prefer lab-grown diamonds because of their concerns about mining. Particularly during this time of increased awareness of the dangers of global warming, mining’s impact on deforestation and water pollution is something to be aware of. But it should also be noted that growing diamonds in a manufacturing environment demands a great deal of electricity. So unless the grower has committed to being carbon neutral (which some have), a lab-grown diamond isn’t inherently more responsible than a mining operation.
And finally, many prefer lab-grown diamonds for the price. While the number of companies that have the capacity to mine natural diamonds at scale is quite small and the barrier to entry is high, lab-grown diamonds are much easier to produce and there are far more producers of lab-grown diamonds. This means that the price of a lab-grown diamond is significantly lower than a mined diamond of the same specifications. Consumers have discovered that they can get a lab-grown diamond for between $800 - $1200 per carat, compared to natural diamonds which tend to be $3200 - $3600 per carat.
Lab-grown diamonds are not simply a replacement for a natural diamond. Natural diamonds have thousands of years of history as a symbol of wealth and preciousness, and the association between diamonds and romance has been strongly established. Don’t expect mined diamonds to go away! But research has indicated diamond consumers are interested in owning both natural and lab-grown diamonds for their diamond wardrobe. Part of the appeal may be that it’s completely impossible to tell with the naked eye if a diamond is mined or lab-grown. But part of the appeal is that a woman can expand her diamond wardrobe to include more diamond styles by including lab-grown in the mix.
Lab-grown diamonds also bring a new buyer to the diamond market … a person who did not consider diamonds interesting before due to reasons related to price or social or environmental impact. These buyers represent an entirely new market for jewelry stores that offer both types of diamonds.
The difference in consumer awareness about lab-grown diamonds has changed dramatically in just the past five years. When speaking to consumers about their jewelry needs, keep in mind the many reasons that a lab-grown diamond may be of interest to them, and offer lab-grown as an option when you suspect that it will fit with that consumer’s values and interests.
