Lab-Grown Diamonds: Investment Opportunities and Market Outlook

Lab-grown diamonds will, at some point, have more sales than natural. This is a given, considering that natural diamonds are a finite resource whose supply will dwindle over time. There is also a factor of ethical and human rights issues involved in mining processes, leading to more people preferring lab-created gemstones. Since the raw materials for producing lab-grown diamonds are nearly infinite, their supply will only increase, reaching a wider base. Understanding this, it makes sense to look at the investment opportunities for lab-grown diamonds today and their market outlook. Are you looking to purchase a lab-grown diamond engagement ring or pendant? Shop at Rare Carat today. Enjoy our competitive prices and quality stones.

Lab-Grown Diamonds Market Outlook

The United States accounts for 50% of diamond sales globally, and this market is rapidly growing. In 2022 alone, the consumer demand for diamonds was more than 50%, an attestation to this rapidly growing industry. According to an Allied Market Research report, the value of lab-grown diamonds market size was 19.3 billion US dollars in 2020. However, the same research projects the market size to reach USD 49.9 billion by 2030. This is a growth of 9.4% CAGR between 2021 and 2030. But what are the factors driving the growth of the lab-grown market?

Rise of the Millennial Generation

Millennials are more likely to show concern about their purchase’s ethical and environmental implications than older generations. Things like climate change, destruction of habitat, and human rights issues involved in diamond mining are a huge concern for the millennials. As a result, this makes Gen Z and millennials a target market for synthetic diamonds. A report by Markets and Markets revealed that about 70% of millennials have considered purchasing lab-grown diamonds over natural ones for the reasons above.

Increased Awareness

Consumers are increasingly becoming aware of the ethical and environmental implications of natural diamond mining. 2010 only about 10% of Americans were aware of lab-grown diamonds. However, the following years show increased consumer awareness, to an impressive 51% in 2018. This shows that more consumers are turning to lab-grown diamonds as a more sustainable alternative.

Improved Quality

The quality of lab-grown diamonds has improved considerably over time. Thanks to advancements in production technology, lab-grown diamonds are virtually indistinguishable from mined ones today. Visit Rare Carat today for a lab-grown diamond, and realize they are the same as natural ones unless looked under a microscope. This quality improvement has seen an uptick in lab-grown diamond sales, with 46% of jewelry retailers confirming that these stones are taking the market away from natural diamonds.

Affordable Prices

Lab-grown diamonds are typically cheaper than natural diamonds, making them more attractive to budget-conscious clients. This means a wider customer base. For instance, you can get a wide range of lab-grown diamonds at customer-friendly prices when you shop at Rare Carat.

 The lab-grown diamond market has a bright future. As the statistics above show, it is expected to grow rapidly over the coming years. This only begs the question, what investment opportunities for lab-grown diamonds can one explore?

Investment Opportunities For Lab-Grown Diamonds

Lab-Grown Diamond Encrusted Accessories

Synthetic diamonds can be integrated into fashion accessories such as watches and handbags. Investing in designers or brands that use lab diamonds in their accessory lines can be a great way of tapping into the intersection of luxury and fashion. Such items can attract consumers and celebrities seeking high-end, exclusive fashion accessories adorned with synthetic diamonds.

Jewelry Design

This is the most common investment option for synthetic diamonds. As demand for lab-grown diamonds rises, so does that of jewelry made from them. You can invest in making lab-grown jewelry or in a company that makes them and enjoy the benefits of this rapidly growing market. Are you a good jewelry designer? Visit Rare Carat and design pendants, earrings, and engagement rings that you can resell to your clients at a profit.

Research and Development

Investing in lab-grown diamond research can be a gateway to unlimited opportunities. You can support companies involved in innovative research and technology development, new lab diamond application techniques, or diamond enhancement methods. This could be color enhancements, production of larger diamonds, and other innovative means.

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Investing in Retail Markets

Investing in e-commerce and retail platforms specializing in lab-grown diamonds, such as Rare Carats, can also earn you a profit. However, look for a company with a strong online presence, a wide selection of synthetic diamonds, and an effective marketing strategy. Before you invest, assess the company’s customer base, the potential for market expansion, and distribution channels.

Diamond Investment Funds

 These are special investment funds focusing on diamonds, including lab-grown ones. They pool investors’ capital and invest in diversified diamond portfolios or other diamond-related assets. Look for a fund with a solid track record, a clear investment strategy, and an experienced management team.

Manufacturing of Lab Grown Diamond

You also can set up a lab-grown diamond manufacturing firm or invest in an established manufacturer as a shareholder. With the increasing market, this will earn you a profit regardless. However, consider distribution, scalability, supply chain efficiency, and production capacity before investing in an established market.

Invest Wisely!

From the foregoing, it is clear that the lab-grown diamond industry market will continue growing. While there are many investment opportunities, you must be careful when setting up investments. Are you a consumer looking to experience the wonder of lab-grown diamonds? Shop at Rare Carat today and choose a stone that meets your preference. If you are an investor, the opportunities in this industry are limitless!