The increase of synthetic diamonds in the gem or jewellery market has made a significant impact on the diamond industry over the last decade or so.
These diamonds are created in controlled environments (laboratories) via various techniques that replicate the natural conditions or processes through which diamonds are formed in nature.
One of the biggest impacts of synthetic diamonds is the potential of these gemstones to disrupt the ‘entire’ traditional diamond mining industry which just like any other industry revolves around the balance between ‘supply and demand’.
However, due to the fact that lab grown diamonds offer a more environmentally friendly and are deemed as ethical alternatives and much cheaper, they have gained have gained popularity among consumers who prioritize sustainability, responsible sourcing and of course budget.
This has put pressure on natural diamond producers to adapt and find ways to differentiate their product due to the fact that lab grown diamonds have also disrupted the pricing dynamics in the industry as initially, lab-grown diamonds were significantly cheaper than their natural counterparts. This scenario made lab grown diamonds an attractive option for budget-conscious consumers looking to buy diamonds for engagement rings or diamond studded jewellery.
However, as technology has advanced and consumer demand increased, the price gap has started to narrow. This has led to greater competition between natural and synthetic diamond manufacturers.
Apart from that, how consumers perceive lab grown diamonds has also evolved or rather changed significantly and all of the initial scepticism and confusion that hovered over these man-made diamonds related to not just quality, but also value have become irrelevant.
This is also because of significant technological advancements over the last two to three decades that have rendered lab-grown diamonds almost indistinguishable from natural diamonds in terms of their physical and as well as the chemical properties of these stones.
It is because of this, lab grown diamonds have gained acceptance as the logical option for those seeking high quality diamond jewellery at lower prices. In response to the rise in popularity of lab diamonds, the industry players who are still maintaining traditional concepts of diamonds are focusing on highlighting the unique qualities and emotional significance of natural diamonds.
This is based on the fact that most jewellers have turned their marketing focus on the elements of rarity and natural beauty of mined diamonds which appeals to consumers who value tradition and heritage.
In summation, the impact of synthetic diamonds on the diamond industry has been significant based on the fact that not only has competition increased, sustainability concerns has also been heightened, and consumer perception and preferences have also changed simultaneously.
While it is difficult to predict the long-term effects, it is clear that synthetic diamonds are here to stay and will continue to shape the industry in various ways.
It is quite the challenge for the mining industry given the fact that mining for diamonds is a capital intensive endeavour which is also among the reasons that the price of natural diamonds are significantly higher than that of lab grown diamonds.
The rise of lab grown diamonds and the subsequent acceptance of these diamonds could be seen as a win for consumers who love the appeal of the ‘bling’.