Danish jewellery giant Pandora is predicting a major transformation in the diamond market over the next decade.
CEO Alexander Lacik has forecasted that lab-grown diamonds will surpass mined diamonds in popularity, marking a significant shift in consumer preferences. This prediction follows Pandora’s 2021 shift to lab-grown diamonds, which the company cited as a response to changing consumer preferences.
Technological Advancements and Consumer Demand
In a recent interview with Bloomberg TV, Lacik explained how rapid technological advancements are making lab-grown diamonds more accessible and affordable.
He noted, “Ten years on, my prediction is the vast majority of diamonds being sold are going to be lab-grown. So I think we’re in front of a big, big transformation here, based on a technological revolution that’s happened.”
Lacik estimates that lab-grown diamonds currently represent approximately 20% of the total diamond market, but this share is expected to grow significantly in the coming years.
Affordability and Design Over Sustainability
While lab-grown diamonds are often marketed as a more sustainable option, Lacik believes that price and design are the primary factors influencing consumer decisions. “There are two drivers of purchase in this category when it comes to product choice. So when you walk into a jewellery store you will be looking at is there a design that appeals to me, and does this fit my wallet. Those are the two main criteria,” Lacik said.
The lower production costs of lab-grown diamonds—estimated to be between one-quarter and one-third of those for mined diamonds—enable companies like Pandora to offer more affordable options to consumers. This cost advantage could expand the appeal of lab-grown diamonds to middle-class buyers, which Pandora has identified as a significant market segment.
Pandora’s Lab-Grown Diamond Strategy
Pandora’s move towards lab-grown diamonds is part of its strategy to diversify beyond its core charm bracelet products.
Since its launch of lab-grown diamond collections in 2021, Pandora has phased out the use of traditional diamonds and other mined gemstones. The company introduced its first lab-grown diamond collection in Denmark and has since expanded to markets including the UK, North America, Australia, Mexico, and Brazil. The rollout will continue globally.
Lacik highlighted the success of lab-grown diamonds in Denmark, stating, “We are the first ones to start marketing lab-grown diamonds in Denmark, but the reception so far has been very positive.” Pandora projects lab-grown diamond sales to reach 1 billion kroner by 2026, approximately 3% of its total revenue.
