Lab-grown diamonds are on the rise, with sales reaching nearly $12 billion in 2022 and continuing to grow in 2023, according to data by Paul Zimnisky, a leading global diamond industry analyst. This surge in popularity is attributed to falling prices and increased demand, driven by companies like Signet Jewelers and Pandora. The market for lab-grown diamonds has been steadily expanding since 2016 when it was valued at just $700 million globally. However, Zimnisky predicts that as the industry matures, lab-grown diamonds will be primarily sold as fashion or semi-precious jewelry, while the value of natural diamonds will continue to increase in the long-term.
Now is the Perfect Time to Buy Diamond Jewelry, says Global Diamond Industry Analyst
According to data from Paul Zimnisky, a leading global diamond industry analyst, there has never been a better time to buy diamond jewelry. The analysis shows that sales of lab-grown diamond jewelry have grown globally to almost $12 billion in 2022, representing a 38% year-over-year increase. In 2023, the industry has already sold $14.6 billion worth of lab-grown diamonds worldwide. Zimnisky’s diamond analytics are widely used by financial institutions and retailers, including HSBC, the International Monetary Fund, Tiffany & Co., and Cartier.
The Rise of Lab-Grown Diamonds
The data reveals a growing trend in the sale of lab-grown diamonds since 2016 when the market was worth just $700 million globally. The leading sellers of lab-grown diamonds are Signet Jewelers, based in the US, and Pandora, a global fashion jewelry company targeting US consumers. Signet, which includes popular banners such as Kay Jewelers, Zales, James Allen, and Blue Nile, made a strategic move towards lab-grown diamonds in early 2022, according to Zimnisky.
Lower Prices and Increased Supply
The increase in lab-grown diamonds in the market has resulted in more demand and subsequently lower prices. As of August 2023, a generic lab-grown diamond is priced at $1,425 per carat, while a generic natural diamond is priced at $5,185 per carat. This represents a significant decrease in price for lab-grown diamonds, with prices falling by about 74% since 2016. Natural diamonds have also seen a decrease in price, falling by almost 21% during the same time period.
The Changing Landscape of Diamond Jewelry
The economic impact of the COVID-19 pandemic has led to tighter budgets and fewer savings for many Americans. As a result, couples are seeking more affordable options when it comes to getting married, including the engagement ring. However, Zimnisky believes that lab-grown diamonds may not be a long-term solution. He suggests that as the industry matures, lab-grown diamonds will be primarily sold as fashion or semi-precious jewelry, while the value of natural diamonds, with their limited supply, will continue to increase in the long run.
In conclusion, the global diamond industry is experiencing significant growth in the sale of lab-grown diamonds. With prices falling and more supply entering the market, now is a great time to buy diamond jewelry. However, it is important to consider the long-term value of natural diamonds as the industry continues to evolve.