Design and Price, Not Ethics: Why Young Buyers Choose Lab Diamonds

Pandora’s CEO Alexander Lacik challenges popular beliefs about why millennials and Gen Z choose lab-grown diamonds. Contrary to assumptions about sustainability driving purchases, Lacik asserts that design and price are the primary factors influencing young consumers.

The lab-grown diamond market is booming, with projections reaching $35.97 billion by 2028. These diamonds cost 30-40% less than mined stones, offering buyers larger gems or more intricate designs for the same budget. This affordability appeals to price-conscious younger generations facing financial pressures.

Lacik boldly states he’ll “be dead” before customers ask for sustainable products in jewelry stores. This view contradicts the narrative of eco-conscious shopping habits among younger buyers. However, some industry observers note that ethical considerations do play a role for certain consumers.

Currently, lab-grown diamonds represent about 7% of the specialty diamond market. This share is expected to grow as consumer awareness increases and production technology improves. Traditional jewelers are adapting by incorporating lab-grown options into their product lines.

The trend reflects broader shifts in consumer culture, challenging traditional notions of luxury and value. It demonstrates a move towards more accessible, personalized products in the jewelry market. As the industry evolves, the coexistence or competition between lab-grown and mined diamonds remains to be seen.

Background

Angola’s diamond industry faced unexpected challenges as prices dropped dramatically in the first half of 2024.

By August, the Empresa Nacional de Diamantes de Angola (ENDIAMA) reported a decline of 30% to 55% from expected values.

This downturn has significant implications for the national economy and the global diamond market. During a recent workshop, Laureano Receado Paulo, an ENDIAMA executive, discussed the disheartening market conditions.

Design and Price, Not Ethics: Why Young Buyers Choose Lab Diamonds

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