As the popularity of lab-grown diamonds surges, driven by price-conscious consumers and those seeking sustainability and ethical choices, concerns about the environmental impact of the industry are emerging. In the U.S., lab-grown diamond sales witnessed a 16% increase in 2023, a trend embraced by millennials and Generation Zs for its eco-friendly appeal.
However, the sustainability claims associated with lab-grown diamonds are under scrutiny. While social media showcases proud owners citing sustainability and ethical reasons, transparency issues abound in the industry. Many major manufacturers, particularly in India and China, two major diamond-producing countries, lack clarity on their environmental impact and aren’t certified by third parties.
India, where 75% of electricity comes from coal, hosts numerous companies claiming sustainability without transparent reports. In contrast, some, like Greenlab Diamonds, utilize renewables in their manufacturing processes. China, another significant producer, has companies like Henan Huanghe Whirlwind and Starsgem Co., providing little information about their electricity sources.
In the U.S., VRAI, operating under Diamond Foundry, stands out as a company with a zero-emissions foundry in Washington, powered by hydropower. While transparent and utilizing renewable energy, such companies represent a small portion of the market.
Lab-grown diamonds are created over weeks, mimicking natural conditions using high pressure and temperature on carbon. While they offer advantages like cost efficiency and flexibility in size and quality, concerns about their long-term value persist.
The lab-grown diamond industry is gaining a 5-6% share globally, challenging the mined diamond sector. However, skepticism about the longevity of lab-grown diamonds’ value and their ability to hold a story like that of natural diamonds presents a marketing challenge.
Despite the rise of lab-grown diamonds, some experts argue for the sustainability of repurposed or recycled diamonds, which require no additional energy. The debate over the true sustainability of lab-grown diamonds continues, prompting consumers to navigate the claims and make informed choices.
