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The Future of Trade

Coming of Age: The Future of Lab-Grown Diamonds

Gain Insights Into the Global Impact 
And Reach of Lab-Grown Diamonds

This publication serves as the first in-depth thought leadership report from DMCC on the lab-grown diamond (LGD) industry. It discusses how this nascent product will shape the Future of Trade, gathering insights from key industry leaders on the opportunities and challenges brought about by LGDs at all levels of the value chain.

The Transformational Journey of Lab-Grown Diamonds

01
THE RAPID RISE OF LAB-GROWN DIAMONDS
02
EMERGENCE AS A DISTINCT INDUSTRY
03
FROM GROWTH SPURT TO GROWING PAINS
04
Lab-Grown Diamond Evolution
05
Lab-Grown Diamonds for Next Generation Applications
 
 

01
THE RAPID RISE OF LAB-GROWN DIAMONDS

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The LGD sector, in just a few years, has showcased remarkable growth and transformation. With its roots as a nascent product, it has now firmly established its place in the global trade landscape, achieving a staggering global retail sales value of USD 12.24 billion in 2022.

 
 

02
EMERGENCE AS A DISTINCT INDUSTRY

The LGD industry, at its core, is a technology-driven business, setting it apart from the natural diamond sector. With a focus on delivering value, LGDs have steered clear of mere commoditization. Their cost advantage enables innovation in both jewellery design and manufacturing. Adopting a demand-led supply chain, the industry emphasises rapid transformation from raw materials to finished products. Efficient planning and robust IT infrastructure are at the heart of this shift. As the LGD sector evolves, it champions sustainability, prioritises product quality, and leverages its unique technological attributes.
 
 

03
FROM GROWTH SPURT TO GROWING PAINS

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The gem-quality LGD industry is navigating a phase of transition. It adapts to slower growth and market shifts in the US while exploring untapped markets like China, Europe, India, and the Middle East. The first LGD Symposium in Dubai provided a strategic platform to assess market challenges, identify drivers for long-term success, and develop collaborative solutions. For full insight into the LGD Symposium 2023 highlights, download the report. 

 
 

04
Lab-Grown Diamond Evolution

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LGDs, having solidified their position in bridal products, now stand at the cusp of broader market penetration. Opportunities beckon in the realms of fine and fashion jewelry. By harnessing the potential of both larger CVD stones and smaller HPHT stones, the industry can cater to diverse segments in a complementary fashion, expanding their reach and resonance.

 
 

05
Lab-Grown Diamonds for Next Generation Applications

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LGDs are poised to redefine the technological frontier. Beyond their jewellery appeal, LGDs are emerging as superior alternatives to silicon in semiconductors, capable of enduring temperatures five times higher and delivering an electrical current a million times greater. Diamond-based semiconductors, leaner and more sustainable, offer device structures thinner than silicon, promising faster and compact technological advancements. As LGDs venture beyond the world of gems, they herald a transformative era in technology.

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DMCC’s Lab-Grown Diamond Symposium 2023 Highlights

The symposium brought together LGD industry leaders to actively explore the industry's challenges and opportunities. For a detailed view of all the highlights, download the LGD report.

Tom Chatham headshot

Tom Chatham

Chairman of Chatham Created Gems

  • With over five decades of experience in the gem industry, Tom Chatham is a pioneering figure in laboratory-created gemstones, especially emeralds.
  • Uncover the lab-grown emerald industry's pitfalls and learn how the LGD sector can avoid them.
  • Delve into Chatham's emphasis on the need for stringent controls on intellectual property in the LGD sector.
  • Discover the influence of industry leaders in shaping regulatory terms and their impacts.
Toby Cruise headshot

Toby Cruse

Diamond Foundry

  • Uncover the viewpoint of a Silicon Valley disruptor and early LGD sector entrant.
  • Learn about the predicted advancements in growing technology, from the current 4-inch wafer to potential 8-inch wafers.
  • Understand how technology companies might emerge as significant LGD consumers, with their unwavering emphasis on product quality.
  • Gain insights into Diamond Foundry's research on retail price stability, contrasted with intense price competition in the wholesale sector.
Industry Economics Highlights

Industry Economics Highlights

  • Explore LGD growth in India and China.
  • Understand the price impact of treating LGDs as commodities.
  • Discover how technology sustains industry profits.
  • Learn about challenges for established producers with advancing tech.
  • Grasp the need for differentiation and partnerships in the LGD sector.
Marketing and Branding Highlights

Marketing and Branding Highlights

  • Understand the shift towards effective LGD promotion to consumers.
  • Discover the significance of educating about LGD's unique offerings.
  • Explore the perspective of LGDs as evolved natural diamonds symbolising love.
  • Grasp the importance of branding and design over transactional sales.
  • Learn how reduced material costs might bolster branding efforts.
  • Dive into the LGD growth in the bridal sector and potential in other segments.
Sustainability and Reputation Highlights

Sustainability and Reputation Highlights

  • Explore the multifaceted nature of sustainability in the LGD industry beyond just carbon neutrality.
  • Understand the current consumer sentiment towards sustainability and its influence on purchasing decisions.
  • Discover the importance of reputation and brand equity over merely marketing "sustainability."
  • Grasp the industry's caution against the overuse of sustainability claims for marketing purposes.
  • Learn about the anticipated challenges from US green guidelines, especially for those reliant on "greenwashing."

KEY RECOMMENDATIONS FOR THE FUTURE OF THE LAB-GROWN DIAMOND INDUSTRY

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EMBRACE THE IDENTITY OF A TECHNOLOGY INDUSTRY

The LGD sector is a technology industry distinct from natural commodities. Its trajectory is characterised by continuous technological advancement, reducing costs and increasing product volume. The focus should be on value-added attributes and innovation in pricing, with branding and marketing pivotal to differentiate LGDs.

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loose diamonds, one is being held by a tweezers

PRIORITISE PRODUCT INNOVATION

LGDs offer creative freedom, unlike natural diamonds. As custom-made diamonds and unique designs spur growth, innovation is key. Beyond jewellery, LGDs' potential in tech areas like chips and quantum computing necessitates research.

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colourful crystal cube in blue background

REIMAGINE THE SUPPLY CHAIN

The LGD supply chain should adopt an order-driven model, moving away from traditional rough-based approaches. Integrated supply chains can fast-track the transformation from raw material to finished jewellery.

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transparent water droplet on yellow and purple background

SHIFT FROM COMPONENT SELLING TO END PRODUCT PROMOTION

LGDs should be showcased as part of the final product, not just components. This approach enhances consumer engagement and emphasises the complete jewellery piece's value.

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FORGE INDEPENDENT LEADERSHIP

The LGD industry needs its own leadership, emphasising value and the product’s beauty. A strategy akin to vegetarian outlets focusing on health rather than non-meat origins is a guide.

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LEAD WITH PURPOSE

Industry leaders should guide the industry, setting standards and fostering collaboration. The LGD industry’s path requires recalibration, expansion, and leadership to tap its potential. These recommendations chart a promising future for the LGD industry.

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