Editor’s Note
As lab-grown diamonds solidify their place in the mainstream jewelry market, a new industry report argues that their marketing strategy must also mature. The focus is shifting from positioning them as a simple alternative to mined diamonds to establishing their own unique identity and value proposition.
According to a new report on the lab-grown industry issued by the Dubai Multi-Commodities Centre (DMCC), now that lab-grown diamonds (LGDs) have entered the jewelry industry’s “mainstream,” the sector’s marketing must evolve so they’re seen less as a natural diamond substitute and more as a distinct product.
DMCC’s “The Future of Trade: Special Lab-Grown Diamond Edition” said the market for created diamond jewelry, estimated at $25 billion–$35 billion in 2025, could double by 2030. While the U.S. remains the core lab-grown diamond jewelry market, there’s increased interest and activity in Europe, India, China, and the Middle East, the report said.
However, it noted, the industry’s success will depend on better storytelling.
It recommended that lab-grown retailers institute “clear value tiering and disciplined pricing strategies” to prevent commoditization.
Sustainability has become a big issue in the lab-grown market, and the paper warned that companies must pivot from making indistinct, unproven sustainability claims to providing third-party verification of any assertions, as well as transparent disclosure of their energy footprint.
In addition, the way grading labs look at created gems is “undergoing rapid change,” according to the report: Some labs, such as IGI, continue to offer full 4Cs grading, but GIA has switched to more general descriptors. DMCC said these different scales could create consumer confusion.
The report also noted that lab-grown manufacturers are thinking “beyond jewelry,” toward uses in other lifestyle sectors, such as watches and wellness. But the real buzz is over possible technological applications, including helping to power semiconductors, photonics, and quantum computing.
If a portion of the LGD supply is carved out for tech applications, it could lead to the long-sought lab-grown diamond price stability, the report said.
DMCC’s white paper grew out of the organization’s second Lab-Grown Diamond Symposium, which was held Sept. 30.
Neil Ventura, the former De Beers executive who is now a DMCC special adviser, tells JCK that the conference showed the lab-grown industry is taking the tech market seriously.
He says that in contrast to past lab-grown meetings, the DMCC conference didn’t talk much about natural diamonds.