Lab-Grown Diamonds

6 December 2022 Austin, Texas - MVI Marketing LLC (THE MVEye), the leader in market research for the global gem, jewelry and watch industries, today announced the release of its latest study findings entitled Global Voices 2022 International Lab-Grown Diamond Consumer and Trade Market Research Report.

“This research study confirms that the lab-grown diamond disruption has gone far beyond the borders of the USA and is now seeing increasing consumer demand in markets across the globe,” said Liz Chatelain, President, and co-founder of THE MVEye. “And there is certainly clear evidence that the mined diamond business is now being cannibalized.”

Key findings revealed in the report include:

This research study was spearheaded by the International Grown Diamond Association (IGDA) and sponsored by GIA - Gemological Institute of America and LUSIX, Sun Grown Diamond producer.

“This is the third major research project that IGDA has spearheaded,” said Richard Garard, IGDA President. He added, “these studies have demonstrated the upward trajectory of lab-grown diamond acceptance - from the consumers barely knowing what it is to now nearly 80% recognition. This rise came mainly through consumer organic word of mouth and social media posts. We believe this could be the most significant research so far, demonstrating trade and consumer presumption of continuing market growth for lab-grown diamonds.”

The study was conducted with over 1,200 North American jewelry consumers and 178 retailers in Australia, Canada, EU, New Zealand, United Kingdom, and the United States. The consumer and retailer respondents answered an extensive online survey and some were also interviewed on video. The report includes links to these videos.

The complete study report is now available on THE MVEye website. Subscribers to The MVI LGD Market Intel Report, members of IGDA, GIA alumni/students, LUSIX customers and journalists can receive this report at no cost.

December 2022 Global Voices THE MVEye 2022 International Lab-Grown Diamond Consumer and Trade Market Research Report
December 2022 Global Voices THE MVEye 2022 International Lab-Grown Diamond Consumer and Trade Market Research Report
December 2022 Global Voices THE MVEye 2022 International Lab-Grown Diamond Consumer and Trade Market Research Report
December 2022 Global Voices THE MVEye 2022 International Lab-Grown Diamond Consumer and Trade Market Research Report
  1. Bigger is better with larger lab-grown diamonds being sold in January. As consumers and retailers begin to see the price-to-value equation playing out in real time, the larger the lab-grown diamond the greater the delta in comparison to mined diamonds (
  2. Most retailers are now requesting 1.25 carat plus in E/G range regular as opposed to simply 1 carat, matching consumer budgets with a larger option (
  3. ​​In previous research from THE MVEye, consumers, presented with a choice of a 1 carat mined diamond for a $5,000 budget vs a 1.30 carat lab-grown diamond of similar quality, would gravitate to the larger diamond 7 out of 10 times (
  4. Demand is growing for larger lab-grown diamonds, but supply of quality (E, F VVS1, as grown) larger lab-grown diamonds is extremely limited due to ongoing human technical expertise shortage. (
  5. Independent retailers continue to make larger margins in lab-grown vs. mined but are still not charging high enough prices in lab-grown to match major retailer pricing and margins. (
  6. Ovals and Princess cuts remain hot but demand and sales of Radiant Cuts and Emerald Cuts have also increased dramatically. (
  7. While IGI is maintaining its leadership position in the lab-grown diamond certification business, GCal is gaining market share in 1-2 carats plus space and GIA is also showing growth in 2 carats plus range. (
  8. Private equity and venture capital markets continue to be interested in lab-grown diamond investment opportunities. Gefen Capital and Maverick Ventures recently invested in prime Israeli CVD grower LUSIX. (
  9. Last month Paris-based luxury investment house Luximpact re-launched the legacy French jewelry maison as a fully traceable, untreated, and climate-neutral lab-grown diamond jewelry brand with settings of 100% recycled gold and platinum. (
  10. Research reveals that 62% of 138 retailers surveyed find that between 5% and 50% of their customers ask specifically for lab-grown diamonds. ( - IGDA report)
  11. 8% of the 1,027 jewelry consumers surveyed said that not only were they aware of lab-grown diamonds before reading a statement in the study, they actually own or have purchased lab-grown diamonds in the past. ( - IGDA report)
  12. Today in 2020, awareness among jewelry consumers is at 80% across gender, age and household income demographics. ( - IGDA report)
  13. Jewelers who successfully sell lab-grown diamonds report a closing ratio of 60% to 80% once customers learn about he project ( - IGDA report)
  14. 38% of independent retailers in the US offer LGD’s instore or online. ( - IGDA report)
  15. A majority (61%) of LDG retailers surveyed expressed extreme satisfaction with the decision to stock and promote this product category. ( - IGDA report)
  16. Nearly all retailers (95%) report better margins with LGD’s versus their mined diamond business with 78% of retailers reporting margins from 16% to 40%+ higher. ( - IGDA report)
  17. Nearly one third of jewelry consumers said they learned about lab-grown diamonds from retail jewelers, in their stores and on their websites, and 21% reported social media as their source of knowledge, with Facebook, Instagram and Youtube the most cited platforms for gaining their awareness. ( - IGDA report)
  18. LDG brand awareness is very strong in 2020, with 69% of jewelry consumers aware of jewelry brands using lab-grown diamonds, with brands like Brilliant Earth and DIAMA by Swarovski among the more recognized. ( - IGDA report)
  19. In the 202 survey, only 11% of consumers cited celebrities as the thing they remember from advertising about lab-grown diamonds, and only 2% recall any star power mentioned in the news reports on the subject. ( - IGDA report)
  20. 80% of jewelry consumers in 2020 have heard about lab-grown diamonds, up from in 58% in 2018. ( - IGDA report)
  21. 69% of jewelry consumers in 2020 knew of brands using lab-grown diamonds, up from 49% in 2018. ( - IGDA report)
  22. 10 years ago less than 10% of consumers were aware of LGD. ( - IGDA report)
  23. 8% of jewelry consumers own/bought fine jewelry set with LGDs, up from 6% in 2018. ( - IGDA report)
  24. 62% of LGD retailers report that 5%-50% of diamond customers ask about LGD. ( - IGDA report)
  25. Many brands saw an increase in recognition the past two years including Brilliant Earth, DIAMA by Swarovski by about 10%, as well as Pure Grown and Diamond Foundry, which were known by 16% of respondents in 2018. ( - IGDA report)
  26. Lightbox by DeBeers saw the biggest jump in brand awareness at 24% in 2020, up from 7% in 2018, with the product launched in May of that year, just months before the survey. ( - IGDA report)
  27. 17% of jewelry consumers in 2020 say they remember thinking or feeling overwhelmingly positive about LGD. ( - IGDA report)
  28. 44% of jewelry consumers in 2020 say they remember thinking or feeling like they wanted to know more about LGD. ( - IGDA report)
  29. LGD attributes that resonate most for nearly a third of jewelry consumers is that LGD jewelry can cost 30% less than jewelry set with mined diamonds, and also that they can get a 30% larger sized lab-grown diamond for the same price as a smaller mined diamond. ( - IGDA report)
  30. The main messages that retailers who sell lab-grown diamonds promote are the cost savings and the ability to get a larger lab-grown diamond for the same price. ( - IGDA report)
  31. 17% of shoppers appreciate that lab-grown diamonds can come with a grading certificate. ( - IGDA report)
  32. More than a third (37%) of consumers expect the salesperson to automatically include lab-grown diamonds in their presentation as a product option. ( - IGDA report)
  33. Of the LGD retailers surveyed, 60% said they present the benefits and features of both mined diamonds and lab-grown diamonds when talking about diamond jewelry. However the remaining 40% of retailers wait for the customers to ask for it or show resistance to mined diamonds before presenting LGD options. ( - IGDA report)
  34. India’s LGD output is estimated to have reached 1.5 million carats in 2020 (
  35. India accounts for about a quarter of the estimated global laboratory-grown diamonds output of 6 to 7 million carats. (
  36. China ranks first in LGD production with an output of 3 million carats (
  37. Continued advances in technology contributed to double-digit growth in production and lower retail prices for lab-grown diamonds in 2019 and 2020. (
  38. The price differential between natural and lab-grown fancy color diamonds is particularly striking—up to 10 times. (
  39. Independent lab-grown manufacturers, major fashion jewelry retailers are adding lab-grown diamonds to their product offerings, further positioning the category into the fashion jewelry segment and making it accessible to a wider range of price-sensitive consumers. (
  40. Sustainability, transparency, and social welfare are priority issues for consumers, investors, and the value chain. (
  41. In 2020, lab-grown diamond production reached 6 to 7 million carats, with up to 60% of it manufactured in China using high-pressure, high-temperature technology. (
  42. Chemical vapor deposition technology is gaining share, with India and the US emerging as major production centers. (
  43. Retail prices for lab-grown diamonds fell in 2020 while wholesale prices remained stable. (
  44. Additional price drops will make lab-grown diamonds accessible to broader groups of price-sensitive consumers and push them further into the fashion category (
  45. Most of the retail lab-grown market is currently concentrated in the US; China is a distant second (
  46. Diamond industry is not investing enough in marketing compared with other premium and luxury segments (
  47. In the lab-grown market, consolidation, production capacity growth in China, and technological advancements are causing unit costs and prices to drop (
  48. lab-grown diamonds could expand into the wider mass jewelry segment, targeting a different audience than natural diamonds (
  49. Customer preferences are changing rapidly, and the diamond jewelry industry is facing increased competition from the Experiences and Electronics categories and from lab-grown stones (
  50. The lab-grown diamond market grew 15% to 20% again in 2019 (
  51. Chinese and Indian producers drove the increase, aided by the widening price differential of lab-grown diamonds versus natural ones. (
  52. Select jewelry designers and retailers are beginning to use lab-grown diamonds, signaling their acceptance and driving lab-grown jewelry sales (
  53. In 2018 and 2019, production of lab-grown diamonds increased 15% to 20%, with majority of the growth coming from China. (
  54. Chinese companies primarily use high-pressure, high-temperature (HPHT) technologies to produce rough diamonds, competing on lowest production cost. (
  55. In the US, companies are pursuing a vertically integrated business model by selling premium branded jewelry. (
  56. We expect additional pressure on retail prices to accelerate lab-grown diamond jewelry sales (
  57. As mines deplete, lab-grown diamonds could offset a portion of the reduction in supply of natural diamonds (
  58. Lab-grown and natural sapphires have remained separate markets for more than 20 years, and synthetic sapphires account for 15% of the total gem-quality market in volume. (
  59. Based on lessons learned from natural and synthetic sapphires, we expect lab-grown diamond substitution to stay within 5% to 15% in value terms through 2030. (
  60. Both retail and wholesale price discounts for lab-grown diamonds have stabilized (
  61. Most lab-grown diamonds are purchased in the US but produced in China, India and the US (
  62. Lab-grown diamonds continued to diverge into a separate, more affordable jewelry category. (
  63. The segment saw continued demand growth and price decreases relative to natural-mined diamonds as lab-grown diamond supply increased and technologies advanced; the average polished lab-grown retail price declined to 30% and the average wholesale price to 14% of natural prices, down from 35% and 20% in 2020, respectively. (
  64. As of today, it is estimated over 2K units are manufacturing LGDs, during 2019-2020, LGDs demand has grown and accordingly, over 94% of the total manufactured LGDs are exported from India. (
  65. India accounts for about a quarter of the estimated global laboratory-grown diamonds output of 6 to 7 million carats. (​​
  66. China ranks first in LGD production with an output of 3 million carats, as per the same Bain report. Singapore and the USA jointly hold the third position with an output of 1 million carats (
  67. The synthetic diamonds global market growth is expected to increase by $9.8 billion at a compounded annual growth rate (CAGR) of 8.11 per cent during 2019-2024 (
  68. The total LGD market share has been growing steadily and is expected to account for 10 per cent (estimated at 19.2 million carats) of the entire worldwide diamond market by 2030. (
  69. India’s gross exports of polished LGDs for the period April 2020 to January 2021 stood at $558.71 million, marking a year-on-year growth of 57 per cent. (
  70. India’s LGD production is mainly through the carbon vapour deposition (CVD) method, followed by high pressure high temperature (HPHT). (
  71. Chinese production is primarily through the HPHT method. (
  72. The lab-grown diamond industry is expected to employ some 1.15 million people worldwide by the year 2050. (Https://Economictimes.Indiatimes.Com/Industry/Cons-Products/Fashion-/-Cosmetics-/-Jewellery/India-Set-To-Become-A-Major-Hub-Of-Lab-Grown-Diamonds/Articleshow/81568710.Cms)
  73. The global lab-grown diamonds market size was valued at $19.3 billion in 2020, and is projected to reach $49.9 billion by 2030, registering a CAGR of 9.4% from 2021 to 2030. (
  74. Depending on size of the diamonds, diamonds below 2 carats are the most commonly used form of lab-grown diamonds as they are the most affordable for jewelry and the most commonly used size of diamonds for industrial uses. (
  75. Asia-Pacific region would exhibit the highest CAGR of 10.6% during 2021-2030. (
  76. Lab grown diamonds industry was negatively impacted by the pandemic owing to disruption in supply chains and exports form countries like China an IIndia (
  77. Online channels have witnessed surge in demand owing to closure of brick and mortar shops.(
  78. Sale of lab grown diamonds is predicted to increase post pandemic as more importance is being given to sustainability and environment friendliness. (
  79. Reduced environment footprints, low cost, and increasing demand in semiconductor industry are the top impacting factor for the lab grown diamonds market. (
  80. North America holds the maximum market share of the lab grown diamonds market (
  81. Trends like increased demand for synthetic diamonds in fashion industry owing to cost effective pricing will positively shape the market in the future. (
  82. The lab grown diamonds market is expected to reach $49.9 billion by 2030. (
  83. By 2030, the global market volume of lab-grown diamonds is forecast to be nearly 19.2 million carats. (
  84. The lab-grown diamond market share within the entire diamond market has been growing steadily in recent years, and is forecast to amount to ten percent of the diamond market worldwide by 2030. (
  85. As of 2019, China was by far the world’s largest producer, accounting for a 56 percent share of lab-grown diamond production worldwide that year. (
  86. India was the world’s second largest producer, having produced a distant 15 percent share of lab-grown diamonds. (
  87. The United States followed closely to third place, at 13 percent. (
  88. By 2024, it is forecast that the market revenue of lab-grown diamonds produced with the CVD method will amount to 16.5 billion U.S. dollars. (
  89. It is forecast that the HPHT method’s market revenue will amount to 11.7 billion U.S. dollars that year. (
  90. As of 2020, the retail price of lab-grown diamonds produced by major diamond producer De Beers was 800 U.S. dollars per carat through its jewelry subsidiary Lightbox. (
  91. In addition to being less expensive, lab-grown diamonds are considered by many to be a more environmentally and socially ethical alternative to natural diamonds. (
  92. The Lab-Grown Diamonds market is estimated to have reached USD 17.8 billion in 2020 and is further projected to reach USD 27.9 billion by 2027, growing at a CAGR of 6.7% during 2021-2027 (forecast period) (
  93. The rising acceptance of lab-grown diamonds among the population in developing nations is the major market-driven factors for the growth of lab grown diamonds. (
  94. Rapid pace urbanization across the globe and an increasing number of jewelry industries are shifting toward cost-effective and high-quality products such as lab-grown diamonds for various applications. (
  95. Lack of awareness among the population about lab-grown diamond can impede the market growth (
  96. In 2020, De Beers Group has planned to open a facility in Oregon with a goal to produce 500,000 synthetic carats a year by the end of 2021. (
  97. In December 2018, Heyaru Engineering announced that the company has invested USD 31.5 million in a company that would make synthetic diamonds in Lommel. The company also planned to expand its site in Lommel over the next five to ten years to make it the largest ‘diamond factory’ in Europe (