[Luxury World] "Instead of Wedding Rings Worth Tens of Millions"… The Trendy Wedding Gift 'Lab Diamond'

Same as Natural Diamond... Expanding Demand for Lab Diamonds
Buy 1 Carat Lab Diamond for the Price of 0.3 Carat

'Second' Ring Used as Fashion Ring
Distribution Industry Increasing Lab Diamond Brand Entries

“Even though natural diamonds have become cheaper than before, these days people look for lab-grown diamonds more. Since you can’t even tell the difference, wouldn’t it be better to wear a 1-carat diamond rather than a 0.3-carat one?” (A jewelry store official in Cheongdam-dong)

“Because diamonds are expensive, people usually buy them when getting married, but that’s not the case anymore. Even those who are already married come to get their second or third diamond rings made with lab-grown diamonds.” (A jewelry store official in Jongno-gu)

Chopard's Happy Diamonds jewelry set made with natural gemstones.

According to the jewelry industry on the 28th, demand for lab-grown diamonds has recently surpassed that for natural diamonds. Summarizing the stories from stores handling lab-grown diamonds, about 55-60% of their sales come from lab-grown diamonds. Although the price of natural diamonds plummeted by more than 30% last year and has recently shown signs of recovery, increasing their price appeal, consumers are growing more interested in lab-grown diamonds.

Lab-grown diamonds are diamonds cultivated in laboratories using environmentally friendly methods. Since they are grown under the same conditions as natural diamonds, they are 100% identical chemically, physically, and optically. The most important factor when grading natural diamonds is how and how much impurity is present, but since lab-grown diamonds are produced in controlled laboratories, to the naked eye, they are indistinguishable from the highest-grade natural diamonds. When they first appeared, they were sometimes seen as “fake diamonds,” but recently, the perception has shifted more positively than negatively.

The 'Earnest Seoul' pop-up store showcased at Shinsegae Gangnam branch last April.
[Photo by Shinsegae]

The biggest reason for the increased demand for lab-grown diamonds is price. Compared to natural diamonds, which are expensive due to limited supply and high costs from mining to processing, lab-grown diamonds can be purchased at about one-fifth the price because they can be produced anytime in a laboratory. Additionally, the prolonged economic downturn caused by high interest rates and inflation has led more consumers to seek reasonable spending, which has also influenced this trend.

The fact that diamond grading institutions (such as GIA, IGI, AGS) also evaluate lab-grown diamonds has helped alleviate doubts about their quality. A 30-year-old individual considering purchasing a diamond ring for a wedding said, “Although the price of natural diamonds has dropped a lot, the price of luxury jewelry keeps rising. Since I don’t plan to resell it later, I don’t feel the need to buy a natural diamond.”

Recently, more women are seeking lab-grown diamonds for fashion rings. Women who only have wedding bands are looking for lab-grown diamonds as “second rings,” and even women who are not married are expanding their interest in lab-grown diamonds for fashion rings. There are also increasing numbers of female customers visiting jewelry stores to add guard rings (rings with small stones encircling them, known as eternity rings) to their existing wedding rings.

The distribution industry is also increasing the entry of lab-grown diamond specialty brands, anticipating further growth in the lab-grown diamond market. According to SSG.com, which offers an official lab-grown diamond brand section, monthly sales are growing by about 50% on average. Last month, the number of products increased from 350 to over 800, more than doubling.

Hyundai Department Store plans to hold a popup for ‘ALOD’ at its Apgujeong main store in March, in addition to ‘Earnest Seoul’ located at the Pangyo branch. Shinsegae Department Store will open additional ALOD stores next month at Shinsegae Hanam and in March at Times Square, besides the main store. A department store industry official explained, “As interest in value consumption trends such as eco-friendly issues rises, the growth trend for lab-grown diamonds is expected to continue.”