It seemed that nothing could happen in the jewelry market that would appear surprising. Yet, the tempos of growing demand for artificial diamonds keep both average consumers and experts in constant anticipation of the news. Sales of artificial diamonds are reaching new and new levels so fast that tracking the changes turned out to be an interesting process, which cannot help but be surprised every time.

In 2022 the global sales of artificial diamonds surpassed the 10% mark for the first time. Yet, the first months of 2023 demonstrated that there are all chances to reach the next level in one jump (if preserving the tendency of the last quarter). So, February of this year has brought an increase in demand for artificial diamonds by 59% if compared to the same period in 2022. It is worth noting that this figure is related to unit sales.

The interesting thing is the rise of sales by value. They are 20% up this year. Although this indicator seems to be insignificant, it is indeed huge, and one can see this when thinking about temps of declining prices for artificial diamonds. Thus, for the two last years, the price for 1-carat lab-grown diamond decreased by 27%. 3-carat stones’ price has dropped by more than half.

So, turning back to sales by value, it is easy to evaluate that the number of artificial diamonds sold on a total sum of 1 billion in 2021 significantly differs from the number of diamonds sold on the same sum in 2023.

It is worth admitting that the tendency of rapid price fall is not the case nowadays anymore. This year the price decline becomes comparatively slower than it was before. Due to recent analytical data, the average retail price for artificial diamonds declined from $2,740 in March 2022 to $2,405 in March 2023.

It is only 12%. It is not 50% and not even 27%. What this tendency is saying?

It says that the artificial diamond jewelry market faced the challenge of survival – it has reached the level, which could not be lowered. Lowering threats by jewelry market crisis. Lowering the price manufacturers lose their profit and they have no reason to produce.

As Madestones admits – currently only brands have an ideal success formula, which allows decreasing prices but being on the ball. Indeed, artificial diamonds became more popular when they have been embraced by such brands as Pandora, Swarovski, DeBeers, etc. The same diamonds but with remarkable features of the brand are more demanded even despite of high price. The 2022 debut artificial diamonds collection by Pandora is a bright manifestation of the branding effect.

Demand is rising now but will it continue rising in the near future?
Paul Zimnisky calls diamonds a discretionary purchase. It means that sales are increasing under the conditions of economic stability and falling when the economy goes down. Yet, the most challenging two years showcased that artificial diamonds play a little different game – they are less dependent on the economy but more on social transformations, mainly generations’ mindsets.

Thus, the current generation of economically active persons is more socially-oriented than their predecessors. Artificial diamonds are a kind of quintessential of this mindset and that is why they are so popular. They are not the product but the whole philosophy of life that starts expanding the area of influence from not being cruel to high-awareness in consuming goods and products.

It is worth emphasizing that this tendency will keep developing. We can see how artificial diamonds are accompanied by recycled gold and silver. We can observe the shift in the production process from the intention of purifying the air to the will not to spoil the environment. If you have not heard before about air diamonds – made from carbon seeds extracted from the polluted atmosphere, or about memorial diamonds – made of cremation ashes – just google to see the idea behind these products.

The new generation is also highly attached to brands. It could be called brand-minded. According to the Diamond Insight Report, 76 percent of diamond jewelry purchased by GenZers was branded and this figure is much higher than for any other generation. Having observed how brands are embracing artificial diamonds, one can get hope for a prosperous future in the artificial diamond jewelry market. The tandem of Brands, which strive to fix prices, and the youth, who want to outstand from the crowd, is a successful combination.

Indeed, many observers do not predict any downfalls or recessions in the jewelry market. However, we are not ensured from geopolitical storms that could ruin the existing logistic or change the way, that are used for diamond supply. It is the worst prediction but we hope that beauty save the world – not only in terms of jewelry but in terms of a new generational mindset oriented toward prosperity and peace.