Marketing in the News -- Lab-Grown Diamonds

 Marketing in the News

The increased popularity of Lab-Grown Diamonds

 

While browsing the internet, I saw the MarketWatch headline, "Lab-Grown Diamonds Market 2022 Insights on Covering Sales Outlook, Demand Forecast and Key Trends 2030," caught my eye. I have been interested in the process of making Lab-Grown Diamonds since the news broke several years ago about illegal activities surrounding the conflict and blood diamonds. However, after reading about the horrors of some mined earth diamonds, I decided I would rather own a lab-grown diamond piece of jewelry than an earth-mined one that possibly cost lives.

The popularity of lab-grown diamonds is increasing, as pointed out by the MarketWatch headlines stating, "the global lab-grown diamonds market will grow at a compound annual growth rate of 9.8% during the forecast period from 2021-2030" (MarketWatch.) The MarketWatch article highlighted how lab-grown diamonds are made by high pressure and high temperature. Natural, earth diamonds, and lab diamonds are made of pure carbon. According to this article, lab diamonds are of better quality since they "are manufactured under a controlled environment and constant surveillance."(MarketWatch)

MarketWatch also said that contributing to the increased popularity, lab-grown diamonds are now widely used in fashion and jewelry. Plus the advanced applications of optics, lasers, and electronics, lab-grown diamonds are used, and research continues for other uses of lab-grown diamonds. In addition, lab-grown diamonds are "highly cost-effective, sustainable, and environmentally friendly," adding to their rapid growth (MarketWatch.).

Reading about the forecast and the increasing popularity of lab-grown diamonds reminded me of a news article published by CNN in April 2022 about lab-grown diamonds.

The CNN article discusses the increased popularity of lab-grown diamonds, as did MarketWatch. Edahn Golan, an independent diamond industry analyst, said, "March data showed the number of engagement rings sold that featured a manufactured diamond jumped 63% compared to last year, while…natural diamond declined 25% in the same period. The typical buyer is the younger than 40 and very budget-conscious age group", said Dan Moran, a third-generation diamond expert, and owner of LA-based fine jeweler Concierge Diamonds. In addition, Millennials and Gen Z's eco-conscious mindset and ethical concerns about natural diamond sourcing are influencing factors.

The illegal-trade activity of earth-mined diamonds contributes to the increasing popularity of lab-grown diamonds. In addition, conflict and blood diamonds have a controversial history of child labor in some African diamond mines, as noted by CNN.

The other side of the coin, a diamond, in this case, might hinder sales is while lab-grown diamonds cost less, they maintain their value but usually do not increase in value as earth diamonds do. Moran points out, "Once a stone is identified as a factory diamond, even though you paid a lot less for it, you also won't get much for it."

Mia Donna and Company, a lab-grown diamond retailer, provides education about lab-grown diamonds through their blogs and news, providing additional positive reasons for lab-grown diamonds. For example, Mia Donna says lab-grown diamonds are environmentally friendly, citing a Frost and Sullivan's carbon emissions report. The report indicates for equal carats produced, earth-mined diamonds were 57,000 grams compared to 0.028 grams carbon emissions for Lab-Grown Diamonds. And the difference in the amount of water used per carat; earth mined uses over 126 gallons per carat while Lab-Grown Diamonds use just 18 gallons per carat. So not only are lab-grown diamonds more environmentally friendly, but they also do not cause the irreversible damage earth-mined diamonds cause (Mia Donna).

A blog post in late September 2021 by Mia Donna discusses the illegal trade and flawed process of certifying earth diamonds conflict-free. Although, MiaDonna points out, "The Kimberley Process certification doesn't ensure your diamond is ethical by any means." Mia Donna continued the grim explanation by saying, "Even if you do end up with a certified "conflict-free" diamond, the likelihood that someone was raped, murdered, or enslaved for you to wear it is still very likely the case." In addition, Mia Donna outlined the difference between conflict and blood diamonds. Rebel forces use conflict diamonds to fund a war, while blood diamonds are minded by someone who could have been enslaved, tortured, raped, beaten, killed, or all of the above. 

After reviewing the information, is it any wonder MarketWatch forecasts a compound annual increase of 9.8% through 2030 of lab-grown diamonds?

The value of the MarketWatch news release is in the potential draw of the stock market investing in the companies producing lab-grown diamonds. 9.8% is a far better return on your money than many other listings on the market. MarketWatch brings attention to the fact that lab-grown diamonds are much more eco-friendly, another positive since climate change is always in the news. Lab-grown diamonds are considered ethical, better quality, and expanding in fields other than jewelry and fashion. It seems like the market is worth looking at to invest in lab-grown diamonds. Even though MarketWatch wants to highlight the reasoning for its optimistic forecast. I think they should have gone more into the possible downturn of markets as CNN pointed out that lab-grown diamonds have little resale value, thereby not being a potential investment. I felt that MarketWatch should have provided more information to be considered informative for decision-making.