Why lab-grown diamond sales are surging

Yesterday, an article published by Parija Kavilanz on CNN was reprinted and commented on by many foreign media. The article's title is Why lab-grown diamond sales are surging, "Why lab-grown diamond sales are surging." Let's read it.

DATA

The article starts with two sets of data provided by Edahn Golan to interpret the (U.S.) lab-grown diamond retail market -

a) March data showed that sales of engagement rings with lab-grown diamonds rose 63% year-over-year, while those with natural diamonds dropped 25%;

b) The above two figures for February were +80% and -13% respectively.

According to Edahn Golan, there are concerns in the natural diamond industry that consumers will increasingly embrace lab-grown diamonds for engagement rings, but "it's already happening."

The reason for the boom

The article believes that "cheap" is the crucial reason.

In the U.S. market, the retail price of lab-grown diamonds is about 27 percent of that of natural diamonds. Golan said the most "standard" one-carat diamond (without specifying a specific grade) now retails for around $8,740, while a lab-grown diamond of the same quality retails for about $2,318; this is a very typical example.

"And, under the influence of the situation in Russia and Ukraine, the channel of Alrosa diamonds entering the U.S. market is limited, so the price of natural diamonds may continue to rise."

In addition, with the deepening of market education, consumers are paying more and more attention to the issue of "ethical sourcing", and natural diamonds need more work in this area.

The article quoted Golan data: the current coverage of cultivated diamonds in the professional diamond jewelry retail market in the United States is 7%, only 3% in 2020.

Note: The precise scope delineated here is the "professional diamond jewelry retail market", that is, the specialty diamond jewelry market, excluding the broader comprehensive jewelry retailing. (As shown below)

Business point of view

Signet CEO Virginia Drosos believes that the growth of lab-grown diamonds is high and says it is one of the most anticipated areas of the year.

Charles and Colvard (the largest moissanite brand in the U.S., which also operates lab-grown diamonds) said: Consumers now don't just need to "look good," they need to "feel good.".

VRAI (Diamond Foundry's retail brand) 's point is that the epidemic has changed many people's attitudes towards life, making them more deeply aware of the importance of society and the environment. It is also one of the foundations for developing the cultivated diamond market.

The meaning of a diamond ring

While expressing optimistic expectations for lab-grown diamonds, the article also raised a sensitive issue: resale value.

The resale value of lab-grown diamonds is low, but are consumers buying engagement rings to pursue the economic value of "resale"? it is a question worth considering by retailers.

"If you love it, you will be happy to wear it. A diamond engagement ring symbolizes commitment, lasting love."