Gold chains never get old – from rap to royals, everyone loves a chunky necklace

“Among the other noteworthy geographic markets are Japan and Canada, forecast to grow at 1.9 per cent and 5 per cent, respectively, over the 2022-2030 period. Within Europe, Germany is forecast to grow at approximately 2.4 per cent CAGR,” the report adds.

According to different stakeholders and analysts, there has been a notable change in consumer values and tastes as the brilliant world of natural diamonds has declined, while the lab-grown diamonds market is on the rise.

Barkev Meserlian, CEO at Barkev’s, says that sales of lab-grown diamonds are up like never before. “We’ve been in the jewellery business for over 40 years now, selling unique engagement rings through our designer brand Barkev’s. We’ve seen many trends throughout the years, but nothing like this,” he continues.

4 of the season’s most jaw-dropping jewellery highlights to know

“The demand for lab-grown diamonds is skyrocketing and young couples are shying away from natural diamonds for many reasons, including the price and the environment. This, I believe, is the reason why natural diamond prices are falling,” Barkev explains.

According to StoneAlgo, a diamond trading platform, lab-grown diamonds are now around 82 per cent cheaper than natural diamonds.

Over the past year, the price of lab-grown diamonds has fallen by around 45 per cent, while the price of natural diamonds has fallen by around 23 per cent, StoneAlgo elaborates.

For De Beers, the value of lab-grown diamonds has declined significantly in recent years due to rapidly growing supply and cheaper production costs.

“This trajectory of reducing value is only expected to continue. As the differences between the two product categories become more evident, they increasingly occupy different spaces in the jewellery sector,” says David Johnson, De Beers’ head of strategic communications.

Companies like De Beers have seen their stock of natural diamonds grow as demand for the finite gemstones falls.

Wearable art? Brooches offer high jewellery designers the ultimate freedom

“As a result of the uncertain macroeconomic environment and high levels of diamond inventory in the midstream, sightholders took a cautious approach to their purchasing during the quarter,” the company wrote in its “Production Report for the Third Quarter of 2023”. Sightholders are companies authorised by De Beers to buy, cut and polish their rough diamonds.

Sales of rough diamonds totalled 6.7 million carats on a consolidated basis from three events in the third quarter of 2023, down from 8.5 million carats from three events in the same period in 2022 and 6.4 million carats from two events in the second quarter of this year, reported De Beers.

These results reflect changes in consumer preferences when it comes to shopping for an engagement ring. “Lab-created diamonds are becoming increasingly popular among consumers looking for an impactful stone when designing the ring of their dreams, says Monique Lhuillier, a famous Filipino fashion designer focused on the bridal sector, who on October 25 announced the introduction of lab-grown diamonds into her designs. “When I first saw samples of lab-created diamonds, I was amazed by the brilliance and purity,” she continues.

“We want to provide [customers] with quality jewellery that aligns with their ethos and shopping habits, and the Monique Lhuillier Bliss lab-created diamonds collection allows us to do that in a revolutionary way,” says Bill Brace, president of Kay Jewelers, the American jewellery brand from which Lhuillier will source its lab-grown gems.

Why investors are crazy for coloured gems at Hong Kong’s jewellery auctions

Lab-created diamonds are now widely accepted as a legitimate choice for consumers, says Vivien Johnston, founder of Johnston Resources, a specialist consultancy for the jewellery industry.

“In previous years, non-disclosure in laboratory-grown diamonds created some mistrust, for retailers and consumers. With improved disclosure measures, and overt marketing of laboratory-grown diamond products as an alternative to natural diamonds, this mistrust is being overcome,” she adds.

As long as a diamond’s provenance is accurately disclosed, she says, “the two categories can coexist and find their place in consumers’ perceptions”.

While the market for lab-grown gems continues to expand, overall prices are down for both lab-grown diamonds and mined diamonds, opening access to a wider market for diamonds in general.

“As the price of natural diamonds continues on its downward trajectory, it’s becoming increasingly obvious that consumers are seeking alternatives that match their preferences and values,” Barkev notes.

For her part, Johnston says the secondary market may soon become much more significant for diamond sales than it is today.

“Natural diamonds may dominate this space and could dial up the heritage, rarity and heirloom factors in marketing, as well as the ‘reduce, reuse, recycle’ or circular economy elements,” she continues.

“Laboratory-grown diamonds may find this market more challenging, but exceptionally well-cut and desirable branded goods could position themselves well here too.”