In less than ten years, the diamond market may face a big disruption in consumer sentiment as their focus shifts towards lab-growns due to costs and environmental concerns, according to Pandora CEO Alexander Lacik cited by Bloomberg.
“This is disrupting in a big, big way,” he said in interviews with Bloomberg TV and by the phone. “Consumer perception swings really fast.”
He estimates that manmade diamonds currently make up about 20% of the total market. Pandora’s sales of jewelry with lab-grown diamonds amounted to $8.9 million in the second quarter of this year, an 88% increase from a year earlier. According to Lacik, by 2026, Pandora targets annual lab-grown diamond sales of $146.9 million, or about 3% of total revenue.
Last year Pandora deployed a new strategy to move the brand away from being only associated with charms, and instead recognized as a full jewelry brand. Bringing cheaper diamonds to the middle class is a key part of that strategy, Lacik said, estimating that production costs of lab-grown stones are about one-quarter to one-third of mined diamonds.
Recently Pandora introduced its lab-grown diamonds collection to its home country Denmark, the first EU market to offer Pandora’s innovative diamonds. In 2021, Pandora stopped using natural diamonds in its jewellery.
"Our lab-grown diamonds represent the future of luxury. They combine beauty and responsibility, and we are incredibly excited to bring them to Denmark. As a Danish company, it is particularly meaningful for us to introduce this innovation to our home market", Lacik commented in June.
Theodor Lisovoy, Managing Editor, Rough&Polished
