The mined diamond sector is being “cannibalized” as almost three quarters of jewelry retailers now sell lab growns, according to new research by The MVeye, market research specialists in gems and jewelry.
Most of them say margins are 20 per cent to 40 per cent higher than mined diamonds.
The survey found 72 per cent sell lab grown, and half of those who don’t currently are considering doing so.
The message most widely used to customers is that they’re getting a bigger stone for the money (42 per cent), followed by cost savings (36 per cent) and sustainability benefits (11 per cent).
“This research study confirms that the lab-grown diamond disruption has gone far beyond the borders of the USA and is now seeing increasing consumer demand in markets across the globe,” said Liz Chatelain, president, and co-founder of The MVEye. “And there is certainly clear evidence that the mined diamond business is now being cannibalized.”
Almost half (46 per cent) of the 178 retailers surveyed in Australia, Canada, EU, New Zealand, UK and USA said they “absolutely” agreed that lab growns were taking away business from mined gems.
The 41-page report, entitled The MVeye 2022 International Lab-Grown Diamond Consumer and Trade Market Research Report, examines the attitude, acceptance, expectations, and impact on jewelry commerce in real terms.
It also found that 36 per cent of consumers would go over their budget to buy a lab grown twice the size of a mined diamond. They were asked to choose between a 1-ct lab grown for $3,000, a 1-ct mined diamond for $5,000, or a 2-ct lab grown for $6,500.