Diamonds are not going anywhere but there is no denying that the diamond market faces a rough future. First off is the coronavirus which has impacted the whole diamond industry. Other than that, it is important to note that diamond production and sales have been on the decline.
Whether it is China which is the world’s second-largest diamond market or in America and Europe, the sales continue to drop.
One of the greatest factors disrupting wedding jewelry is lab-created diamonds. This is spurred on by consumer awareness and wanting to be more environmentally responsible. This ultimately means supporting lab grown diamonds as these do not cause any damage to the environment compared to the earth mined diamonds.
Millennials who make up a huge percentage of the market also want social responsibility. They are aware that miners at ground level often face challenges that are life-threatening and do not get decent pay.
A study done in February of 2019 showed that up to 66% of millennials who are searching for their ideal diamond would prefer a lab grown diamond. Furthermore, 23% of millennials also said that they would choose a lab grown diamond over earth mined diamond.
And granted, the Diamond Producers Association is doing their part to convince shoppers that the methods currently used to mine the stones are both environmentally and socially responsible. That said, the shoppers simply aren’t buying it.
The media has also played its role in exposing some of the ill practices done by the big diamond producers. A recent Netflix show went undercover to expose how De Beers uses tricks to maintain the business at the expense of the environment and human life.
An interesting description of the diamond mining process is one of opaque supply chain where it is not truly known whether the Kimberley Process has been effective at keeping blood diamonds out of the diamond market.
The lab grown diamond market grew by between 15 and 20 percent in 2019. Another interesting phenomenon is that more and more jewelry sellers who initially specialized in mined diamonds are now stocking lab grown diamonds. Because of this, it is expected that the market and sales for lab grown diamonds are going to continue rising.
A major moment was seen early in 2019 when the Duchess of Sussex was photographed wearing earrings form a well-known lab grown diamond jeweler. According to the founders of the brand, this had a huge effect on the sales of lab grown diamond jewelry.
De Beers was early to recognize the impact that lab grown diamonds were going to have on the diamond market and have their own line of lab grown diamonds called the Lightbox Jewelry Line.
When it comes to the prices between lab grown diamonds and earth mined diamonds, a shopper can save up to 30% on the price by going for the lab diamonds. These are simply more affordable while getting the same level or even better aesthetic value.