Lab-Grown Diamond Market Report

Posted on July 1, 2022 by Richard B. Drucker, GIA GG, Honorary FGA

Lab-grown was the talk of Vegas, with more booths than ever. This sector keeps growing in bridal but as more companies come in, will there be an oversupply? Prices continue to decrease, now with discounts in the 85-95% range from natural. In February, 2022, National Jeweler Magazine’s Brecken Branstrator, did an article on Measuring the Lab-Grown Diamond Market: Size, Growth, and Future Opportunities. Among her research included industry analysts Edahn Golan and Paul Zimnisky. Some of the pertinent stats that came out of this included the tremendous growth in the last five years. Before 2018, LGD was estimated at between less than 1% to 1.5% of total global diamond jewelry market. Last year, the estimates grew to near 5% by one estimate and 7 to 8% by another. Zimnisky also estimated that LGD sales could reach near $8 billion this year (approximately 10% of total market). As the article further points out, LGD jewelry is position- ing as fashion jewelry, not only because of the huge price drop and now differential from natural, but because of companies like Pandora that has gone all lab-grown in their lines and De Beer’s own Lightbox selling all diamond jewelry at a straight $800 per carat (all sizes, now up to 2 ct), priced lower than most of the current diamond manufacturers—and that price is retail to the consumer. In Rapaport News, May 19, 2022, they reported that, “The Indian jewelry trade is calling on the government to invest in the lab-grown diamond industry, noting the sec- tor could contribute up to 150 million carats of polished a year.” It is estimated that India is about 15% of the cur- rent production of lab-grown diamonds. China is a major contributor currently, with the bulk of production, but LGDs are being grown in Russia, the US, and other countries as well. Go Green display of melee, their focus at the 2015 trade show in Hong Kong. Gemworld photo. In more recent news, LVMH with two other investors is putting in $90 million for lab-grown producer Lusix, based in Israel. They are opening a new solar powered factory this summer. And yet another trade press release just announced the plans of Adamas One, a lab-grown manufacturer, that has purchased the remnants of struggling Scio Diamond Corp., formerly Apollo, which was one of the first LGD companies. They plan an IPO to raise $30 million. Clearly, companies believe there is still strong growth in the LGD market when we see the incredible investment...

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