The size of the laboratory-created diamond jewelry market is expected to be nearly twofold by 2025, as per Paul Zimnisky, an industry observer. In a recent report, Zimnisky estimated the value of the current market to be at around $2 billion and the carat size to be 3 million. This is massive growth for an industry that created only some hundred thousand diamond carats per year back in 2018.
The industry analyst felt that the market value would be around $4 billion in four years. Then, artificial diamonds will represent a medium to high one-digit portion of the diamond market on the whole. Ultimately, Zimnisky said, more lab grown diamonds would possibly be sold as compared to their natural counterparts.
Zimnisky feels that lab-made diamonds will largely occupy the future jewelry and fashion space. He felt that lab-created diamond rates would keep falling, especially for stones without any branding. Ever since lab-created diamonds have turned into a commercially available product, Zimnisky has seen their rates gradually become 75% less as compared to natural stones with identical weights.
He stated that customers paying thousands of US dollars for jewelry with laboratory-made diamonds would be a short-lived phenomenon. According to the analyst, diamond growers view the technology market as one with lots of money. Many laboratory-made diamond producers wish to reduce the prices and improve the quality of their products while getting scalability. Ultimately, the analyst said that that would contribute to a diamond output with lower prices.
Zimnisky feels that customers will keep purchasing greater quantities of lab-generated diamonds, but it would happen for the stones that come in the below $1,000 retail price point. As for Zimnisky, the market size for diamonds with $1,000 as their price is huge. Zimnisky reckons that diamond simulants will have a hard time competing with nice white diamonds. For the uninitiated, the word simulant refers to gemstones that look like diamonds, such as white sapphire and moissanite to name two.
While Zimnisky said that there would be a few high-end laboratory-made diamond jewelry pieces, their selling factor would be more based on the brands than the stones themselves. He does not think that higher-end jewelry retailers would enter the laboratory-grown diamond market. According to him, those companies wish to sell engagement rings worth $6,000 to $7,000 and not the rings priced at $800 or so.