
The bustling landscape of New York’s 47th Street, famously known as the Diamond District, has long been recognized for its sea of gemstone shops and appraisers. However, just forty blocks south, a rejuvenated vision of gem crafting and commerce has taken root at the hands of Pandora – the renowned jewelry retailer.
During the much-anticipated New York Fashion Week in early September, Pandora marked its territory in the realm of diamonds. The company put a pause on the usual hum and bustle at Astor Place, hosting an extravagant event they suitably dubbed the “lab-grown diamond district.” Among the sea of fashion gurus and high-profile attendees was Pamela Anderson, the face proudly fronting Pandora’s latest campaign.
Pandora, while a sizable force in the jewelry business, wasn’t initially a significant contender in the diamond sector. It sculpted its brand around the charm bracelets niche with merchandise under $100, consequently becoming the world’s largest charm-focused retailer with revenues close to $4 billion last year. But, as lab-grown diamonds — a less expensive yet structurally identical alternative to mined gems — surged in demand, Pandora saw an opportunity for an added sparkle to their collections.
Pandora isn’t the lone player cashing in on the popularity of lab-grown diamonds. Brilliant Earth saw its net sales skyrocket by 15.7 percent in 2022 to $440 million with lab-grown stones as their exclusive offering. Meanwhile, Dorsey, another lab-grown jewelry brand, sold over a million diamonds during the same year.
These innovative and eco-friendly trends are reshaping the jewelry industry. The traditional dynamics of diamond trading, dominated by high-end brands and small businesses, are being cracked open by lab-grown gems. First developed in the ’80s, these diamonds are the result of pure carbon subjected to intense heat and pressure in a metal cube, virtually indistinguishable from earth-mined diamonds.
Such advancements in gem creation have led to a shift in consumer preferences. The once hefty Tiffany tennis bracelet priced over $20,000 can now be swapped for a similar one with lab-grown diamonds from Brilliant Earth for just $3,450. According to jewelry industry expert Paul Zimnisky, sales of lab-grown diamonds jumped from roughly $1 billion in 2016 to a staggering $12 billion in 2022, surging by 38 percent from 2021 to 2022.
This trend has sent ripples across the globe. Pandora has already upped its sales outlook twice this year, and its stock price more than doubled in the past year. On the flip side, the world’s largest diamond producer, De Beers, is reducing prices by as much as 40 percent due to dwindling demand for mined stones.
The bigger picture reveals a significantly widened market. The affordability of lab-grown diamonds not only invites more consumers but also allows them to invest in more pieces. Reaching such potential buyers, brands are honing their marketing strategies, with a particular focus on women, filling the market with an assortment of everyday wearable gems while not forgetting their iconic engagement rings.
Even though lab-grown engagement rings are becoming a common sight, many brands are observing more growth in the non-bridal jewelry section. Dorsey, for instance, has decided to fill the gap in everyday jewelry, with vintage-inspired earrings and tennis necklaces being their top sellers. The young company, founded in 2019, saw its sales grow 600 percent from 2021 to 2022 and is on course to double this figure once again this year. They’re thriving, largely due to word-of-mouth marketing, especially among influencers sharing and endorsing their products on social platforms.
The lab-grown diamond trend has also prompted legacy jewelry brands to reconsider their stance. Luxury retail giant LVMH-owned jeweler, Fred, is sampling a new collection featuring lab-grown diamonds to its high-net-worth clients. The man-made stones trend, according to industry analyst Zimnisky, is undeniably on the rise and is set to continue its growth trajectory at a double-digit percentage rate in the coming years.
Perhaps Amish Shah, the founder of lab-grown jewelry brand J’evar, said it best, “What started as a skepticism, or a question of if it will be an embarrassment, now carries a sense of pride. It’s the diamond of the future.” The growth of lab-grown stones isn’t just a trend anymore. It’s an evolution, an evolution reshaping the diamond industry’s landscape for time to come.