The diamond market is increasingly shaped by a pronounced divide between natural diamonds and lab‑grown diamonds, with the latter proving particularly appealing to Generation Z. During a discussion between Avi Krawitz and Matt Gabel, diamond expert and representative of the family-owned firm MJ Gabel, several key aspects of this shift were examined. The exchange explored young consumers’ priorities, environmental considerations, the growing demand for customization, and the impact of pricing on purchasing decisions
Young Consumers’ Priorities: Accessibility, Seamlessness, and a Search for Meaning
Generation Z is redefining the market’s codes. More price‑sensitive and fully comfortable with online purchasing, this generation is less attached to convention and gravitates toward accessible products. Lab‑grown diamonds, typically priced 60% to 70% below natural diamonds, align closely with their quest for meaningful purchases that remain within budget. For many young buyers, spending the equivalent of a car on an engagement ring is no longer perceived as relevant.
In addition, the digital experience, the transparency of information, and the ability to compare prices and products instantly have become essential components of the decision‑making process.
Environmental Concerns: Conflicting Narratives
Environmental arguments play a central role in the rise of lab‑grown diamonds, which are often perceived, particularly on social media, as having a lower environmental impact. In response to these narratives, the natural diamond sector must continue to assert its own fundamentals, including traceability, contributions to local economies, the structuring of mining communities, socio‑economic benefits for producing countries, and the unique geological value of natural diamonds.
The debate extends far beyond carbon footprints. It raises broader questions regarding value distribution, territorial anchoring, and the industry’s ability to document and substantiate its commitments through tangible evidence.
Customization: A New Standard of Desire
Customization has become a defining standard in the market. Young consumers favor pieces that are unique, customizable, and immediately available. Lab‑grown diamonds facilitate this trend by enabling nearly bespoke creations at significantly lower prices.
By contrast, the natural diamond segment relies on rarity: subtle variations in color, inclusions, distinctive features, and the inherent personality of each stone. A question remains as to whether this argument, rooted in the unpredictability of nature, can convince a generation that prefers to maintain full control over its purchase, even if that means opting for the standardized perfection of a lab‑grown stone. This shift poses a narrative challenge for the natural diamond industry, which must find ways to fully convey the great strengths of natural diamonds.
Price Impact: What Ultimately Tips the Scale
Price remains a decisive factor, especially as competitive pressure intensifies and the cost of producing lab‑grown diamonds continues to fall. Younger and less affluent consumers are adopting lab‑grown diamonds with increasing ease, particularly in the United States.
However, within the luxury segment, and in the engagement ring category to some extent, natural diamonds retain strong symbolic resonance. Buyers’ decisions continue to alternate between the appeal of lower prices offered by lab‑grown stones and the emotional value associated with natural diamonds, within a market where both products coexist in a tense and highly competitive environment.
Source : The Diamond Press