The head of the World Diamond Council, Feriel Zerouki, has stated that lab-grown diamonds are losing their appeal due to an oversupply in the market and shifting consumer preferences that are moving back towards natural diamonds. Since early 2022, the sector of natural diamonds saw a price slump driven by the rise of lab-grown gems, especially among younger buyers. However, a significant drop in lab-grown diamond prices—mainly caused by excessive production in China and India—has begun to erode consumer trust in synthetic diamonds.
Zerouki mentioned that prices for lab-grown diamonds are crashing, impacting consumer confidence, with wholesale prices for certain lab-grown diamonds falling by as much as 96% since 2018. Industry experts warn that lab-grown diamonds might soon be viewed merely as fashion accessories rather than competitive alternatives to natural diamonds, particularly in the bridal market. Zerouki expressed the view that the "lab-grown bubble has burst," noting a growing trend back towards natural diamonds at retail levels.
she highlighted that the resurgence in demand for natural diamonds will require concerted efforts, exemplified by initiatives like the Luanda Accord, where diamond-producing countries and companies create collective marketing funds to promote natural diamonds..
In summary, the World Diamond Council head says lab-grown gems are losing their sparkle because of oversupply causing steep price drops, which in turn undermines consumer confidence and shifts preference back to natural diamonds.
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