Despite the diamond industry’s efforts to establish separate categories for natural and lab-grown diamonds, price-conscious consumers are increasingly embracing the latter. For instance, a Tiffany tennis bracelet can cost north of $20,000, while a comparable lab-grown carat bracelet from Brilliant Earth is priced at just $3,450. This striking price difference has contributed to the soaring popularity of lab-grown diamonds.
According to industry analyst Paul Zimnisky, sales of lab-grown diamonds have grown from under $1 billion in 2016 to nearly $12 billion in 2022, representing over 17% of the diamond market. The growth rate is accelerating, with lab-grown diamond sales surging by 38% from 2021 to 2022. This shift is resonating across the industry, with legacy jewelers having to adapt to the changing market dynamics.
The evolution is not just about affordability; it is about democratizing the world of jewelry. Many consumers are reinvesting the savings from purchasing lab-grown diamonds into acquiring more pieces, whether it be larger engagement rings or complementary jewelry items. The democratization of luxury has also led to a change in consumer behavior, as more individuals are actively buying jewelry for themselves rather than solely relying on gifts.
In response to this shifting landscape, brands are adjusting their marketing strategies. Traditional diamond advertisements have often targeted men purchasing jewelry for their partners. However, now the focus is on a broader audience, particularly women shopping for fashion-oriented pieces. Lab-grown diamonds are marketed as a complement to natural diamonds, expanding the options available to consumers rather than competing directly with traditional stones.
Non-bridal jewelry is where many brands are experiencing the most significant growth. For example, Dorsey specializes in selling items like tennis necklaces, bracelets, and vintage-inspired earrings, addressing a gap in everyday jewelry. Their success underscores the democratization of luxury once reserved for the elite. This approach is resonating with customers, and Dorsey witnessed its sales grow by an impressive 600% from 2021 to 2022, achieving profitability, driven in part by word-of-mouth marketing and influencer endorsements.
As the industry continues to evolve, traditional jewelry houses are slowly embracing the trend and adapting to meet the growing demand for lab-grown diamonds. Lab-grown diamonds are expected to continue growing at a double-digit percentage rate in the coming years, and their status as a symbol of beauty and meaning is becoming more accessible than ever before, transforming the jewelry landscape for generations to come.
