Cultivate the contribution of diamonds to the growth of the retail market
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In the current international public opinion, the statement that "cultivating diamonds to erode the natural diamond market" is very popular. There are many reasons behind this statement: concerns about the decline in demand for natural diamonds, the maintenance of vested interests, and human dependence on "natural" and "rare".
Everything is normal.
However, there are also quite a few practitioners who believe that the true significance of cultivating the existence of diamonds is to provide a new choice for the diamond consumption market, thereby helping to expand the size of the entire diamond market. Especially when the price difference between cultivation and nature is magnified to a certain extent, many consumers who originally had the desire to purchase diamonds but had a limited budget can obtain their favorite diamond products.
As for the erosion of the natural diamond market, it is inevitable - especially in the current stage of primary development.
Our familiar analyst Paul Zimnisky published an interesting article yesterday analyzing and predicting the contribution of cultivating diamonds to market growth.
As a senior analyst who has been observing the international diamond industry for a long time, many of Ginniski's views are based on the operating rules and development history of the natural diamond industry.
However, through recent years of communication, we still believe that compared to other "analysts" or "analytical institutions," Kinniski's tolerance and objectivity are relatively more prominent. Therefore, this article will interpret his views on "cultivating the incremental contribution of diamonds", please refer to them.
Jinniski calculates based on sales value (or "market value") and believes that 60% of cultivated diamonds will "compete with the natural diamond market" in 2026. In other words, he believes that 40% of the cultivated diamonds sold in 2026 are beneficial for market growth.
"For the diamond market, without nurturing diamonds, these sales figures would not exist."
Of course, as he mentioned in the article, the premise of this prediction is that the diamond market is not a "zero sum market", that is, for every cultivated diamond sold, it does not mean that one natural diamond will be sold less.
Jinniski predicts that the global retail sales of cultivated diamond jewelry can reach $18 billion by 2024, of which $7 billion belongs to the "incremental market".
From 2016 to 2026, the contribution of cultivating diamonds to the incremental market has been continuously increasing.
Jinniski insists on one point: consumers have different views on natural diamond jewelry and on cultivating diamond jewelry. Especially when the price of cultivated diamonds continues to decline, and consumers know that the price of a cultivated diamond is 30% or 20% of that of natural diamonds of the same grade, this conceptual difference becomes even more apparent. In addition to the market concept changes caused by price trends, the speed of technological evolution is also a key factor to consider for cultivating the diamond industry internally.
The article suggests that top manufacturers will continue to increase investment in scientific research to generate better economic benefits, including in the industrial sector. At the same time, this will also create certain barriers for new entrants, allowing for top production
