Signet recently reported disappointing financial results that have caused its stock price to plummet. The company’s struggles highlight a larger issue: a failure to recognize the seismic shift happening in the jewelry market. While the demand for lab-grown diamonds has been rapidly growing, especially among younger consumers who value sustainability and ethical sourcing, Signet’s management has opted to double down on mined diamonds, further fueled by a hefty marketing partnership with De Beers. This decision reflects a deeper disconnect with the evolving preferences of today’s consumers, many of whom are increasingly choosing lab-grown diamonds for their affordability, environmental benefits, and ethical considerations. The result? Signet risks alienating the very demographic that will shape the future of the jewelry market.

Rather than embracing the future of jewelry—lab-grown diamonds—Signet has opted to promote traditional mined diamonds to a generation that is seeking more transparency and sustainability. Despite the growing popularity of lab-grown diamonds, particularly with millennials and Gen Z, Signet’s focus on mined diamonds has left them out of step with the consumer shift. With the price gap between lab-grown and mined diamonds becoming more pronounced, consumers are beginning to view the latter as outdated and unnecessary. The decision to accept marketing dollars from De Beers, who has long been associated with the mined diamond industry, raises questions about Signet’s commitment to meeting the demands of modern consumers, who want an alternative to the carbon-intensive and ethically fraught diamond supply chain.

A similar trend is playing out at Tiffany & Co., a brand synonymous with high-end jewelry and bridal sales. Tiffany, which has long resisted offering lab-grown diamonds in its stores, is now feeling the pain of this refusal. Their bridal business, traditionally a cornerstone of their sales, has been hit hard by the growing consumer preference for lab-grown diamonds. Consumers increasingly see lab-grown diamonds as a more modern, ethical, and cost-effective alternative to mined diamonds, and Tiffany’s reluctance to embrace this shift has likely contributed to a downturn in its sales. The brand’s refusal to offer lab-grown options has not only resulted in lost opportunities but has also made it seem out of touch with younger, socially conscious shoppers who are now looking for jewelers that align with their values.

The reality for Signet and Tiffany is clear: ignoring the demand for lab-grown diamonds risks alienating the next generation of consumers who are shaping the future of the jewelry industry. Both companies are at a crossroads, and their continued reliance on the mined diamond market may be their undoing. As the market for lab-grown diamonds continues to expand, companies that fail to adapt—like Signet and Tiffany—may find themselves left behind, unable to recapture the loyalty of younger consumers who are driving one of the most significant disruptions the jewelry retailing business has ever seen. The time to embrace this change is now, and the brands that act decisively to meet this demand will likely emerge as the leaders of tomorrow’s jewelry market.