The laboratory-grown diamond industry is experiencing unprecedented growth, with up to 70 percent of engagement rings in the United States now featuring lab-grown stones, according to industry experts.
This shift in consumer preference signals a dramatic transformation in the luxury jewelry market, particularly among younger buyers seeking ethical and sustainable alternatives.
Dubai is capitalising on this market evolution through 2DOT4 Diamonds, the emirate’s first lab-grown diamond manufacturing facility. The company, which began development in 2018, has established itself as a premium producer, with 80 percent of its output achieving D and E color grades – equivalent to the top 1 percent of mined diamonds in terms of quality.
“The mined diamond industry today only produces 5 percent of D and E color diamonds in their sales. We only do D and E color, whether from factory point of view or from retail point of view,” said Nathalie Morrison, co-founder of Astrea London, a luxury jewelry brand specialising in lab-grown diamonds.
The facility, which develops its own technology and machines in Dubai, represents a fully integrated operation from growth to polishing, all conducted within the same building in Jebel Ali. This vertical integration allows for better quality control and more competitive pricing, with lab-grown diamonds typically costing 80 percent less than their mined counterparts.
Arnaud Flambeau, chairman of 2DOT4 Diamonds, highlighted that the quality of lab-grown diamonds is consistently high, and often requires sophisticated technology and highly skilled personnel. “You need very brilliant scientists in your factory to be able to make nice diamonds. It’s extremely complicated,” he said.
The growth in demand extends beyond the US market. Europe is seeing increasing adoption, and industry experts estimate the UAE market has already reached approximately 30 percent penetration for lab-grown diamonds. This trend aligns with broader luxury market projections, with Morrison citing Bain Capital analysis showing 5 percent annual growth in diamond demand over the next 15 years.
Despite common misconceptions about unlimited production capacity, Flambeau noted that current lab-grown diamond production only accounts for about 15 percent of mined diamond volume. “To get what the mines are producing, we need decades to produce the machines, to train the people, to have the space, to have the manpower. It’s extremely complex,” he explained.
The rise of lab-grown diamonds represents more than just a market shift; it marks a transformation in how luxury is defined for a new generation. With major fashion houses like Prada entering the jewelry market specifically with lab-grown diamonds, the industry appears poised for continued evolution, particularly in manufacturing hubs like Dubai that combine technological capability with luxury market expertise.
The trajectory suggests lab-grown diamonds could dominate the market within 15 years, coinciding with projected mine depletion and increasing consumer preference for sustainable luxury goods. However, experts believe certain segments of the natural diamond market, particularly unique high-end pieces, will maintain their position in the luxury sector.
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