Are laboratory-grown diamonds the gemstones of the future?

Is the popularity of the laboratory-cultivated diamond industry increasing, producing cheaper and more sustainable alternatives to mined diamonds, really making gemstones eternal?

What are laboratory-grown diamonds?

For over 50 years, diamonds have been the ultimate symbol of love and the preferred gemstone for engagement rings. From songs praising them as a 'girl's best friend' to advertising campaigns emphasizing their eternal power, diamonds have become deeply ingrained in our culture. But as the popularity of the laboratory-grown diamond industry continues to rise and produces cheaper, more sustainable alternatives to mined diamonds, are gemstones truly eternal?

Firstly, it's important to understand: what are laboratory-grown diamonds? 'Lab-grown diamonds are optically, chemically, and physically identical to natural diamonds,'explained Melissa Crivillaro, Chief Marketing Officer of Lightbox, a subsidiary of the De Beers Group that manufactures lab-grown diamonds, via email. 'They are grown in a laboratory over a matter of weeks rather than being mined from the earth.' The process involves diamond seeds (thin slices of existing gemstones) along with raw carbon and energy, which are then subjected to conditions simulating the natural environment where traditional diamonds flourish. It has become a popular choice among consumers in recent years.

According to data from Vogue Business, the production of mined diamonds still exceeds that of the lab-grown industry — in contrast, over 110 million carats of diamonds were mined in 2020 — yet this industry is growing: according to data from lab-grown diamond jewelry brand Aether, it accounted for 7.5% of the diamond industry market share in 2021, an increase from 3% in 2018. Since then, new lab-grown diamond brands have been launched, including traditional mainstream mined diamond brands such as the De Beers Group and Pandora incorporating lab-grown diamonds into their products.

Why are fewer and fewer people purchasing mined diamonds?

Although the earliest descriptions of diamonds were found in Sanskrit manuscripts dating back to 320-296 BCE, today, many people own diamonds due to modern marketing. Thanks to the legendary 'A Diamond Is Forever' campaign launched in 1948, De Beers — one of the world's largest diamond miners, cutters, and sellers — successfully convinced the world that the only appropriate way to get engaged is with a diamond ring. This gave rise to the engagement ring industry as we know it today: wholesale diamond sales in the country surged from $23 million in 1939 to $2.1 billion in 1979.

However, as consumers become increasingly aware of the environmental and social impacts of their fashion and shopping choices, ethical issues surrounding diamonds have been raised. Some argue that the industry has serious environmental, economic, and social impacts on communities where natural diamonds are mined, fueling armed conflicts. Despite the Kimberley Process, a certification established in 2003 aimed at reducing the mining and export of 'blood diamonds,' human rights abuses are still documented in countries where diamond mining occurs over the past 20 years. However, many still believe that the economic and social benefits outweigh the apparent costs: the Natural Diamond Council says that over 80% of the net economic benefits from diamond production remain in the countries of origin.

Diamonads re forever?

Beyond ethics and sustainability, multiple reports have concluded that diamonds are losing relevance with Millennials and Gen Z, who are less interested in engagement and marriage compared to previous generations. As society gradually moves away from the notion of the nuclear family as its cornerstone, symbols that once held it together are also gradually fading. In turn, diamond companies are adapting to changing societal trends by turning to lab-grown diamonds to offer cheaper, more sustainable products. To illustrate, refer to Lightbox, established by the De Beers Group in 2018.

Then there are intergenerational economic factors — Millennials own only 5% of the wealth in the United States — making lab-grown diamonds more affordable, thus attracting the populace. For instance, De Beers' cheapest diamond studs retail for $1,150, for a 0.14-carat diamond, while Lightbox offers a similar pair for $250, including a 0.25-carat diamond.

Although lab-grown diamonds are more economical, many argue that their value won't be preserved like mined diamonds, which are becoming increasingly rare: global diamond supply peaked in 2006 at 176 million carats, a level Bloomberg reports will never be reached again. 'Natural diamonds are a finite natural resource: the earth does not produce them anymore. Therefore, this rarity makes them a long-term store of value,' wrote Sally Morrison, Natural Diamond PR Director at the De Beers Group, via email. Experts predict that by 2021, diamond mining supply will fall short by 15 million carats, potentially leading to an increased demand for lab-grown diamonds.