Leading jewelry retailer Pandora recently announced the launch of its first collection of lab-grown diamonds, which has grown in popularity in recent years, driven by consumer demand for sustainable and ethical jewelry.
The market leader’s move could serve as a catalyst to encourage other players to embrace lab-grown diamonds, although luxury jewelers and mining companies are likely to resist the change.
Demand for lab-grown diamonds stems from the trend towards sustainability
Pandora Brilliance, the brand’s new collection, was initially introduced in the UK, with a global launch in other key markets scheduled for 2022. Pandora lab-made diamonds are made in Great Britain and are identical to diamonds excerpts. They are also graded according to the same color, clarity, cut, and industry standard 4C carat weight.
The company’s decision to launch a collection of lab-grown diamonds demonstrates its intention to meet evolving consumer demands, which have brought sustainability and ethics to the fore in recent years. Sustainability is perhaps the most important global theme of 2021 and the jewelry market is no exception.
The lab-created diamonds in the Pandora collection have been cultivated with over 60% renewable energy on average and greenhouse gas (GHG) emissions from non-renewable energies are offset by CarbonNeutral certification. When Pandora launches the collection globally next year, diamonds are expected to be made from 100% renewable energy.
Another key issue facing the trade in natural diamonds is the violation of human rights, which has led to demands for increased transparency in supply chains. Concerns about the environment and working practices in the mining industry have led to a growing demand for alternatives to mined diamonds. Pandora is now ready to enjoy it.
Other players can continue to follow suit
Pandora’s decision as a well-known global player to enter the lab-grown diamond segment could spark a change in the market and encourage other players to follow suit. The segment has come a long way already, with a number of significant investments made in recent years, an encouraging sign for the future of lab-grown products.
In April 2021, the diamond marketplace Nivoda announced that it would significantly increase its lab supply after seeing demand increase significantly in 2020. As of August 2020, only 6% of the company’s sales were diamonds. grown in the lab, but that figure rose to 26% in just a few months.
Luxury players are likely to resist change
Despite recent developments in the market for lab-grown diamonds, resistance to change is present, especially among luxury jewelers and diamond mining giants. The diamond market is incredibly lucrative, and as a result, many players believe that approving lab-grown alternatives could ultimately devalue natural diamonds. Many large luxury groups such as the owner of Cartier Cie FinanciÃ¨re Richemont SA and the owner of Tiffany LVMH Moet Hennessy Louis Vuitton SE abstained.