In a development reminiscent of an old Jewish parable about an island where diamonds are so abundant they are worthless, the diamond industry is seeing a dramatic shift. With the advent of diamond-growing laboratories and affordable synthetic diamond-making machines, consumers can now create their own diamonds for a fraction of the cost of traditional stones.
Chinese eCommerce platform Alibaba is now offering a synthetic diamond-making machine for $200,000, according to Ars Technica. This innovation reflects a growing trend towards lab-grown diamonds, which are becoming increasingly popular and accessible, posing a challenge to an industry traditionally built on the illusion of rarity.
On September 12, during its earnings call, Signet Jewelers—owner of prominent jewelry brands such as Kay Jewelers, Zales, and Jared—announced that lab-grown diamonds now constitute a significant portion of their sales. In the second quarter of fiscal year 2025, sales of lab-grown diamond fashion jewelry surged by over 25%, contributing to higher average transaction values and driving a decline in prices.
Signet Jewelers CEO Virginia Drosos noted that lab-created diamonds have been available in the market since 2019 and that consumers are increasingly aware of their differences from natural diamonds. She added, “The consistent story of lab diamond pricing-dropping means that consumers no longer expect these stones to retain value in the same way as traditional diamonds.”
Pandora has also reported a rise in young consumers opting for synthetic diamonds, reflecting a shift towards more budget-friendly options as inflation impacts consumer spending. Research from the PYMNTS Intelligence “New Reality Check: The Paycheck-to-Paycheck Report” highlights that many consumers are adjusting their purchasing behaviors due to financial constraints, further driving demand for affordable diamond alternatives.
The trend towards more accessible diamond purchases extends beyond synthetic stones. The diamond retail market is increasingly mirroring mass-market retail models. For example, B2B jewelry marketplace Nivoda has streamlined its operations to offer faster delivery times, with some products available within one to two days.
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