Editor’s Note
As inflation reshapes consumer priorities, lab-grown diamonds are gaining traction for their price competitiveness and eco-friendly appeal. This article explores their projected market growth and how they compare to natural diamonds.
Global lab-grown diamond market projected to grow to 68 trillion won by 2030.
Lab-grown diamonds are emerging as a new growth market in the retail industry. Unlike natural diamonds obtained through mining, lab-grown diamonds are cultivated in a laboratory (Lab). They are 100% identical to traditional natural diamonds in physical, optical, and chemical aspects. As value-based consumption becomes an established culture, lab-grown diamonds are penetrating consumer needs.
Their price point is also about 5 to 10 times cheaper. In the prolonged trend of economic downturn, even for items of similar value, artificial substitutes that avoid concerns about environmental harm and labor exploitation are gaining spotlight over natural products.
As interest in lab-grown diamonds increases, demand is also predicted to grow accordingly. According to a survey of 2,000 consumers commissioned last October by KDT Diamond, a domestic diamond specialist, to the mobile user survey platform Kratos, about 4 out of 10 respondents expressed their intention to choose lab-grown diamonds for future diamond purchases.
Specifically, to the question ‘Would you be willing to purchase a lab-grown diamond in a situation where you need to buy a diamond?’, approximately 40% responded positively. Negative responses accounted for 22.5%.
Intent to purchase lab-grown diamonds was higher among female consumers than male. While 42% of women answered they would choose lab-grown diamonds, only 38% of men did so.
Responses were also predominantly favorable to the question of whether eco-friendly elements would influence the decision to purchase lab-grown diamonds. 46% of respondents showed a positive attitude. Negative responses were only 23.5%.
According to Allied Market Research, the global lab-grown diamond market size is expected to swell to about $49.9 billion (approximately 68 trillion Korean won) by 2030.
In line with this trend, the retail industry is also focusing on the lab-grown diamond market, which possesses both price competitiveness and sustainable eco-friendly elements, and is putting effort into marketing.
The E-Land Group is spearheading with its lab-grown fine jewelry brand ‘The Grace London’. Launched in May last year, ‘The Grace London’ aims for ‘responsible luxury’ and is accelerating the expansion of offline channels. After opening a new store in Lotte Department Store’s Jamsil branch in May, it recently added a store at the Inspire Entertainment Resort located in Incheon’s Yeongjong Island.
The Yeongjong Island store offers a diverse product lineup from carat diamonds to colored stone products, and diamond products over 50 carats. A separate ‘Private VIP Room’ for extended consultations has also been prepared. Furthermore, E-Land is also targeting the lab-grown diamond market through its group’s representative brand, Roem.
The Shinsegae Group is also eyeing the lab-grown diamond market through its own channels such as e-commerce and department stores. For example, its online affiliate SSG.com took the lead in popularizing eco-friendly diamonds by newly establishing an ‘Official Lab-Grown Diamond Store’ at the end of 2022. In March, targeting White Day, it jointly planned and released a ‘Lab-Grown Birthstone Collection’ with the jewelry specialty brand ‘Dorothy’. It consists of 12 types of necklaces and 12 types of earrings, featuring good value for money with prices in the 300,000 won range.
Lotte Shopping is also pursuing various collaborations with lab-grown diamond sellers, through methods like attracting stores or developing pop-ups. In October last year, it temporarily held a ‘Luminous Lab’ pop-up event at Lotte Department Store’s Jamsil branch. ‘Luminous Lab’ is a new lab-grown diamond brand created by ‘Luminous’, a natural diamond brand with a long history. Since September last year, Lotte Department Store has been operating the lab-grown diamond brand ‘The Grace London’ in the basement level 1 of its main store.