The mined diamond industry’s biggest problem is itself, not lab diamonds

One of the world’s biggest jewellery and diamond expositions, JCK Las Vegas, took place last month. While press, buyers, retailers and influencers attended to discover the biggest design trends going forward, many were also looking for ways to tackle the lowered confidence in the mined diamond sector from consumers and retailers.

It wasn’t long ago that lab-grown diamonds were first introduced to the fine jewellery space, and they quickly took over our screens and red carpets. The COVID-19 pandemic was the turning point for many industries, fine jewellery included. 2021 and 2022 were great years for both mined and lab-grown diamonds as people had more disposable income to spend on personal items which could easily be purchased online. Today, however, the industry isn't looking as good for mined diamonds. DeBeers revenue in the sector is down, reporting a $315 million provisional revenue, down from $456 million this time last year. Being one of the most authoritative institutions in the mined-diamond sector – it’s no surprise their downward slide is sending the industry into panic mode.

Lab-grown diamonds, on the other hand, were able to use the pandemic to capture the hearts and wallets of young spenders who wanted to shop online; a sales channel that traditional fine jewellery brands haven’t caught onto fast enough. Brands like Lindelli and Cullen Jewellery have mastered the digital selling channel from virtual consultations to at-home sizing guides, meaning there’s no need to step into a jewellery store again.

It’s unfortunate though that while both mined diamonds and lab-grown diamonds have their loyal clientele, there is a focus on discrediting lab-grown diamonds when it comes to marketing of the mined product. Mined-diamonds generally market themselves based on rarity, and lab-grown diamonds do so based on sustainability and ethics. The reality is that whilst mined diamonds are rare, they aren’t near as rare as they pertain to be. And while lab-grown diamonds are largely more sustainable and often have transparent supply chains – not all brands can back up such claims.

This paired with mined diamonds contributing heavily to the GDP of countries like Botswana, there is no black and white answer here in the debate of mined diamonds versus lab-grown diamonds. Where mined diamonds do fall short is the narrative they spread about lab-grown diamonds. A talk amongst industry experts from the GIA [Gemological Institute of America] and De Beers at JCK said that storytelling needs to be reimagined in order to grow mined diamond sales and consumer confidence.

So what is the lesson learned here? Everyone should stick to the positives; and let the consumer decide. And in the case of lab-grown diamonds, they know exactly who they appeal to and why. Gen Y and Z aren’t buying into the storytelling from mined diamond brands, and the jewellery store business model doesn’t align with their digital-first and ethical values.

To appeal to Gen Z, we must focus on what’s important to them – and that includes appealing to their desire for accountability to build value. They want to know the products they buy will help create a better world and environment, and that people and planet will not end up worse off as a result of their buying decisions. While mined diamonds can focus on storytelling, it’s no competition for value.

And this is where Clear Neutral can help. Clear Neutral 100% Carbon-Neutral certifications are bolstering value for some of the fastest growing jewellery brands today. By helping jewellery brands to align with consumer values, our certifications are helping brands to take leadership in a fearful market while creating a positive impact.

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How do lab-created or lab-grown diamonds compare to mined diamonds in terms of quality, resale value, and energy use?

Lab-created or lab-grown diamonds are chemically identical to mined diamonds and have the same optical characteristics, such as brilliance, fire, and scintillation. They can be produced in a range of colours and carat sizes, offering versatility as an option. In terms of quality, they are also graded and certified in the same way as mined diamonds. However, lab-grown diamonds may have a slight difference in resale value and may be perceived differently by some customers, but in general, their value is increasing as their popularity increases. In terms of energy use, lab-grown diamonds are sustainable diamonds that consume less energy in the manufacturing process compared to mined diamonds, which require heavy machinery and transportation. Additionally, companies can have the carbon emissions of their lab-grown diamonds offset by an independent third-party auditor like Clear Neutral, further reducing their environmental impact and making them eco-friendly diamonds.

Why are lab-created or lab-grown diamonds considered more sustainable and eco-friendly than mined diamonds?

A lab-created or lab-grown diamond is produced in a controlled laboratory environment using advanced technology, raw materials, and recycled diamonds. This eliminates the environmental impact and ethical concerns of a mined diamond, such as the destruction of natural habitats, air and water pollution, and human rights abuses associated with mined diamonds. Lab-created diamonds also have a smaller carbon footprint and can be independently audited for carbon offsetting by Clear Neutral, making them a more sustainable and eco-friendly option compared to mined diamonds. These sustainable lab-grown diamonds, often referred to as cultured diamonds, are becoming increasingly popular in the diamond industry as a conflict-free option with environmentally responsible origins for engagement rings and other jewellery. The process of creating lab-grown rough diamonds uses chemical vapour deposition or high-pressure and high-temperature environments, but with safe working conditions and no chemical pollutants.

How can companies in the diamond industry achieve carbon neutrality?

They can do so by offsetting the carbon emissions produced by lab-grown diamonds through methods such as investing in renewable energy projects or reforestation initiatives. Independent third-party verifiers like Clear Neutral can also certify that emissions have been accurately measured and that offsets are valid. Even for companies with a vertically integrated supply chain, which control all aspects of the production process – from growing the diamonds in plasma reactors to cutting and polishing the diamonds, carbon neutrality can be achieved. By minimising the carbon footprint, these companies can attract investment and gain celebrity approval. With consumers becoming more conscious of their impact on the environment and looking to make more sustainable choices in their purchasing decisions, companies working with Clear Neutral will be perceived as committed to providing customers with access to carbon-neutral diamonds.

The mined diamond industry’s biggest problem is itself, not lab diamonds

How do lab-created or lab-grown diamonds compare to mined diamonds in terms of quality, resale value, and energy use?

Why are lab-created or lab-grown diamonds considered more sustainable and eco-friendly than mined diamonds?

How can companies in the diamond industry achieve carbon neutrality?

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