New research shows global demand for lab-grown diamonds scaling up and cannibalization increasing.
MVI Marketing LLC also called The MVEye released Global Voices 2022 International Lab-Grown Diamond Consumer and Trade Market Research Report. “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.”
Key findings revealed in the report include:
- Retailers shared that they have a feeling of “joy” being able to sell truly beautiful diamond jewellery at affordable prices, something they haven’t been able to do in years.
- Preferences for lab-grown diamonds increase when consumers are shown the price differential to mined diamonds.
- 36% of consumer respondents would go over their original mined diamond shopping budget to purchase a much larger lab-grown diamond.
- Among those consumer respondents who have recently shopped for and purchased an engagement ring or wedding set, 46% were shown a lab-grown diamond while shopping. Of those who were not shown a lab-grown diamond, 87% said they “may or definitely would have bought” a lab-grown diamond if it had been presented to them.
- 46% of jewelry retailer respondents in this study (who currently sell lab-grown diamonds) said lab-grown diamonds are “absolutely” taking business away from their mined diamond business. 87% said they are “satisfied” or “very satisfied” with their decision to sell lab-grown diamonds.
- For those retailers who do not sell lab-grown diamonds, their two main reasons were “The retail value could drop drastically, leaving me with angry customers” (38%) and “We believe in mined only” (30%).
This research study was spearheaded by the International Grown Diamond Association (IGDA) and sponsored by GIA – Gemological Institute of America and LUSIX, Sun Grown Diamond producer.
“This is the third major research project that IGDA has spearheaded,” said Richard Garard, IGDA President. He added, “these studies have demonstrated the upward trajectory of lab-grown diamond acceptance – from the consumers barely knowing what it is to now nearly 80% recognition. This rise came mainly through consumer organic word of mouth and social media posts. We believe this could be the most significant research so far, demonstrating trade and consumer presumption of continuing market growth for lab-grown diamonds.”
The study was conducted with over 1,200 North American jewelry consumers and 178 retailers in Australia, Canada, EU, New Zealand, United Kingdom, and the United States. The consumer and retailer respondents answered an extensive online survey and some were also interviewed on video.