At some point, more lab-grown diamonds will be sold than naturals. Natural diamonds are a finite resource, and over time, their supply will dwindle. Lab-grown diamonds are factory made, and the raw materials for producing them are nearly infinite. Lab-grown diamonds sales will eventually outpace naturals. The question is not if but when this will happen.
Diamond Market Activity and Analysis
The diamond market explained. Using our research, detailed data, and knowledge of the diamond industry, we put it in context with clarity.
What is the Diamond Market?
It is the collected set of activities that result in a piece of jewelry set with a diamond adorning a person. It covers a wide range of activities, and requires a wide range of disciplines to continue and develop. And yet, it is a relatively small industry that generates less than $100 billion in global retail sales.
Why is There a Diamond Market?
It is human nature to desire to adorn jewelry. Diamonds have succeeded to catch the attention of many thanks to their exceptional beauty, but there is more to this picture. The successful use of marketing since the early 1940s has had a large contribution.
Since the dawn of humanity, people have sought to adorn themselves. The desire to look good and decorate ourselves is set deep into our DNA. Be it a simple string of small shells or flowers, or an elaborate crown full of details and complex workmanship, we want it.
Of all the components that can be set in a decoration, diamonds reign supreme. Thanks to their sparkle, shine, rarity, and overall beauty, diamonds have always been coveted. It is that desire that the diamond market serves. It is the reason that a multi-billion dollar exits – to serve a human desire.
What Are the Components of the Diamond Market?
The foundation of the market comprises:
- Exploration
- Mining
- Rough diamond sales
- Diamond polishing
- Polished diamond wholesaling
- Jewelry making
- Retailing
- Consumer demand
For a deeper look into this topic, please see below:
Lockdown-Free Gen Z Spent Nearly 4 Times More on Jewelry in 2021
Post COVID, Gen Zs nearly quadrupled their spend on jewelry in 2021. Those residing outside urban areas and, for the first time, Americans that identify as Asians, were top spenders on jewelry in 2021. These three demographics shaped jewelry demand across the US.
Jewelry Demand Sinks 11% in October, But Do Not Fret!
The annual forecast with the monthly analysis: Most jewelry retail sales figures were in the red in October on a year-over-year basis. However, US jewelry demand is still relatively high, reflecting ongoing elevated consumer interest in the category.
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The Lab-Grown Diamond Contradiction
The lab-grown diamond contradiction. Demand is rising, but prices are falling. They are hot in the US, but not sweeping the rest of the world. It’s a technologically-driven product catering to a young crowd and striving to follow in the footsteps of a centuries-old product, while enthusiastically adopting many of its ills.
These are the issues, with figures and findings that support this view.
How Much Jewelry was Sold? A Massive $11.5B Less Then Believed
How much jewelry sold in the US is a crucial question. It impacts planning and financing. Revised US government estimates just shaved off $11.5 billion worth of sales. No small matter. Here are the figures, plus a forecast for 2022.
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Lab Grown: All Fears Materialized
In 2018, De Beers launched Lightbox Jewelry, a lab-grown-set jewelry collection with an unstated primary goal of disrupting the lab-grown market through devaluation and separation. Divide and conquer is an age-old battle strategy, but in this case, it didn’t work as well as hoped for. Surprisingly, not only is the natural diamond industry seeing its fears materialize. So also is the lab-grown industry. Following is the sum of all their fears.
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Brace Yourself, The Decline is Here
After two very buoyant years, the softening everyone knew would hit has finally arrived. It’s not just the slowdown in China, the second largest consumer market, but the US is feeling it as well.
Israeli Bank Financing of the Diamond Industry Slashed
Israeli banks cut financing of the diamond industry by 33%, falling below $500 million for the first time in 30 years. The decline reflected shrinking activity, reduced reliance on financing, and banks’ balking at the complications of working with diamond firms.
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Not a 2020 Wrap-Up, or a 2021 Prediction
A few observations on the most significant place for the diamond industry: US retail sales 2020. Jewelry sales were up!
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Five Countries Lead Diamond Supplies to the US
Diamond supply to the US comes from all over the world. As the world’s largest diamond consumer market, the US is the country that imports the most diamonds – more than $400 billion worth of polished diamonds in the last 30 years.
