Explore the Recent Trends and Developments Shaping the Lab Grown Diamonds Industry
With technology advancing rapidly, lab-grown diamonds have become a viable alternative to naturally mined diamonds for consumers looking for sustainable, ethical, and affordable options.
Rise of sustainable and ethical consumerism-
Manufacturers have now been able to produce larger quantities of high-quality lab-grown diamonds. This has led to a decrease in prices and an increase in availability, making lab-grown diamonds a more accessible option for consumers. One of the biggest trends in the lab-grown diamond market has been the rise of sustainable and ethical consumerism. Consumers are increasingly concerned about the environmental and social impact of their purchases, and lab-grown diamonds offer a more sustainable and ethical option compared to mined diamonds. This trend is expected to continue as consumers become more aware of the impact of their purchases.
Another trend is the growing acceptance of lab-grown diamonds in the bridal market. Traditionally, natural diamonds have been the go-to choice for engagement rings and wedding bands. However, lab-grown diamonds are becoming more popular among couples who value sustainability, ethical sourcing, and affordability.
Growing popularity of lab grown diamonds in the construction and stone industries–
Lab grown diamonds are highly valued in the construction and stone industries for their exceptional hardness and cutting abilities. They are commonly utilized in various cutting blade solutions for abrasive surfaces as well as sawing, grinding, tunneling, and diaphragm wall-cutting applications. This technology has proven particularly useful in cutting dimension stones such as granite and marble and for boring applications that require fast drilling.
The Asia-Pacific region is poised to become the world's largest and fastest-growing construction industry, accounting for approximately 45% of global construction outlays. The Chinese government, for example, has unveiled ambitious construction plans that include relocating 250 million people to new megacities within the next decade, presenting a significant opportunity for the development of advanced construction materials. The demand for synthetic diamonds as heat sinks is on the rise, fueled by the rapid growth of the electronics industry. Additionally, India is predicted to rank among the top five global consumers of electronics and appliances by 2025. Meanwhile, the Japanese construction industry is expected to thrive due to upcoming events, such as the 2025 World Expo in Osaka and ongoing redevelopment and recovery efforts following natural disasters. Tokyo Station is undergoing major redevelopment, including the construction of two impressive high-rise buildings. The first tower, standing at a height of 230 meters with 37 floors, was completed in 2021. The second tower, which is expected to be finished in 2027, will be even more impressive, with 61 floors and a towering height of 390 meters. These developments signify the significant growth and transformation of Tokyo's skyline.
On the other hand, the latest figures from the US Census Bureau reveal that new construction put in place had an annual value of USD 1,626,444 million in 2021, up from USD 1,499,570 million in the previous year. These developments are expected to fuel the growth of the lab grown diamonds market across the globe in the coming years.
Keeping in tab with a recent market report, the global lab grown diamonds market is projected to exhibit a noteworthy CAGR from 2021 to 2031.
Increasing preference from the jewelry industry-
The rising adoption of lab grown diamonds by the jewelry and fashion industry is expected to supplement the market growth even more. Lab grown diamonds have gained popularity in the jewelry industry as a cost-effective alternative to naturally mined diamonds. Their availability in various shapes and sizes has opened up new possibilities for jewelry designers to create unique and stylish pieces. Some prominent jewelry companies, including Pandora, have transitioned entirely to lab grown diamonds, while others are collaborating with manufacturers to create exclusive and fashionable jewelry. These pieces are now being showcased at fashion events and endorsed by celebrities. Several jewelry brands and retailers have launched lab-grown diamond collections in the last few years. For example, Pandora launched its first lab-grown diamond collection in 2020, offering consumers a sustainable and affordable option for diamond jewelry. Similarly, De Beers launched its own lab-grown diamond jewelry line, Lightbox, in 2018, with the aim of offering consumers an affordable and transparent option for lab-grown diamonds.
One of the major players in the industry, Diamond Foundry, has recently launched a new collection of lab-grown diamonds called “Alchemy”. This collection features diamonds that are made from recycled carbon, reducing the environmental impact of diamond production. This launch shows Diamond Foundry's commitment to sustainability and catering to the increasing demand for eco-friendly products.
Another notable launch is by Pure Grown Diamonds, which has introduced a new collection of lab-grown diamonds called “Pure Ignite”. This collection features fancy colored diamonds in a variety of hues, catering to consumers who are looking for unique and personalized jewelry pieces.
Mergers and acquisitions–
Mergers and acquisitions have also been an indicative drift in the lab grown diamonds market. In 2020, Washington-based lab-grown diamond company, Ada Diamonds, was acquired by New York-based company, Lightbox Jewelry. This acquisition allowed Lightbox to expand its product offerings and reach a wider audience.
Another notable merger was between a lab-grown diamond company, MiaDonna, and an ethical jewelry company, The Greener Diamond. This merger allowed MiaDonna to expand its product offerings to include more sustainable and ethical options, catering to consumers who are increasingly conscious of the environmental and social impact of their purchases.
Element Six UK Ltd entered into two significant collaborations in 2021 and 2022. In February 2022, the company joined forces with II-VI Inc. to expand its diamond technology competency. This collaboration involved the licensing of Element Six's intellectual property and equipment to produce high-quality single-crystal diamonds.
Earlier in July 2021, Element Six UK Ltd formed a partnership with the University of Warwick to develop the next generation of synthetic diamond-enabled technologies. As part of this collaboration, the company leveraged its advanced material solutions expertise and capabilities.
Here, it’s worth mentioning that market experienced disruptions due to supply chain and market disruptions caused by the COVID-19 pandemic, resulting in temporary shutdowns of various end-user activities. However, the market showed signs of recovery in 2021, driven by increasing demand for electronics, semiconductors, and super abrasives.
To conclude, it can be stated that the lab-grown diamonds market is rapidly evolving, with new product launches and mergers shaping the industry. As consumers become more conscious of sustainability and ethical practices, it will be interesting to see how lab-grown diamond companies continue to innovate and meet the changing demands of their customers.
Author’s Bio- Koyel Ghosh is a blogger with a strong passion and enjoys writing in miscellaneous domains, as she believes it lets her explore a wide variety of niches. She has an innate interest in creativity and enjoys experimenting with different writing styles. A writer who never stops imagining, she has been serving the corporate industry for the last four years.