Overview of the Ever Evolving Diamond Industry

All industries have been impacted by the advent of digital systems and solutions and the diamond industry is no exception as the industry has been augmenting and conventional analogue techniques have been almost completely replaced. Retailers are utilising technological elements such 3D, printing, laser cutting to create jewellery with intricate designs not possible before due to enhanced precision and accuracy of these tools.

The rise of Ecommerce is also another factor that has both improved the industry in many ways and disrupted the industry at the same time as consumers are now able to purchase diamonds from diamond wholesalers from just about anywhere on the planet. This has effectively eliminated or at least reduced the role of ‘middle-men’ while simultaneously broadening the market for diamond retailers.

Even Blockchain technology has joined the fray as it is used by industry players to track diamonds travelling through the entire supply chain allowing diamond buyers and resellers to know where exactly where the diamonds originate from and how these diamonds were sourced or created in labs as it is with lab grown diamonds / synthetic diamonds which have become immensely popular among consumers.

The Rise of the Synthetic Gem – Lab-Grown Diamonds Are Rising in Popularity

The advancement of High-Pressure High Temperature or HPHT and CVD or Chemical vapour Deposition has enabled scientists to create diamonds in a lab that are of exceptionally high quality (in most cases, they have better qualities in terms of purity, clarity and colour which is undoubtedly reconfiguring the market significantly.

The reason behind the rapid rise in popularity of lab grown diamonds is varied among which include the lower costs of obtaining the diamond which can be created in a lab within weeks, lower impact on the environment, higher quality, wider choices and the low price. Coupled with the trend of having bigger rocks on engagement rings (2 carat and above), the market sphere for lab grown diamonds has grown exponentially and currently commands an approximate 46 % of the diamond engagement ring market.

Natural diamonds weighing above 2 carats cost a fortune and far beyond the financial reach of the middle-income consumer group, but most of this consumer group could easily afford a 2-carat synthetic diamond as the centre stone for engagement rings.

The fact that the jewellery market revolving around diamonds is going through an unprecedented evolution is undeniable. The prices of natural diamond have fallen sharply in recent years due to these new elements. The market is currently flooded with new entrants who are able to match prices and at the same time offer better choices and designs of diamonds and jewellery.

Conventional brick and mortar jewellers are finding it difficult to keep up with the pace that the industry is moving at mainly due to stagnant inventory of natural diamonds which has the cash flow of retailers that held on to natural diamonds when prices were low. Industry players are however hoping that things will stabilise by 2025.