Pandora Jewelry, the renowned Danish jewelry chain, has unveiled its plans to broaden the availability of lab-grown diamonds. These synthetic diamonds will now be featured in three of Pandora’s product collections and introduced into three new markets. The company made this announcement on August 15, coinciding with its first-half results. Currently, Pandora offers lab-grown diamonds in the United States, the United Kingdom, and Canada, at prices that can reach as high as $4,450 for a 2-carat ring. The company’s move to expand access to these lab-made diamonds means that customers in Mexico, Brazil, and Australia will soon be able to purchase them as well.
Pandora’s decision to incorporate lab-grown diamonds follows its choice to discontinue the sale of natural diamonds in 2021. This decision stemmed from concerns about human rights abuses in diamond mines and factories, as well as the high carbon emissions associated with mining. In contrast, lab-grown diamonds have a significantly lower entry price, starting at $290. This pricing aligns with Pandora’s mission to offer affordable jewelry to its customers.
In addition to their affordability, lab-grown diamonds demonstrate impressive growth potential. A report by Stats & Research forecasts that the global market for lab-grown diamond jewelry, already valued at $6.6 billion, will grow at an annual rate of 8.4%. This growth rate surpasses the 5.6% annual growth rate of the traditional diamond market. However, it is important to note that the synthetic diamond market is still considerably smaller in size.
Despite its relatively small size, the demand for lab-grown diamond jewelry has been substantial, particularly for Pandora. As the brand is the world’s top-selling jewelry company, it has witnessed the emergence of lab-made stones as its fastest-growing segment, accounting for approximately 1% of revenue in the first quarter. This growth is especially remarkable given the limited availability of these products.
Pandora prides itself on its commitment to sustainability. In alignment with this principle, the company uses renewable energy to produce its lab-grown diamonds, resulting in a carbon footprint that is one-twentieth the size of a mined gem of similar dimensions. Additionally, Pandora sets its lab-grown stones in pieces of jewelry that utilize recycled silver and gold.
The new collections featuring lab-grown diamonds will be accessible in 700 stores by the end of the month, including the Australian market. Pandora intends to launch some of these collections in Mexico and Brazil in October, with a full introduction into those markets planned for the beginning of next year. Pandora’s CEO, Alexander Lacik, has expressed the company’s ambitions for this category, emphasizing the potential for growth and success.
It is worth noting that real diamonds never made up a significant portion of Pandora’s business. Prior to the prohibition of mined diamonds, the company sold around 50,000 pieces of diamond jewelry annually, which is minuscule in comparison to its yearly total of roughly 100 million pieces.
Pandora’s expansion into new markets and incorporation of lab-grown diamonds into its product collections are solidifying its position as a leading provider of affordable and sustainable jewelry. The brand’s dedication to ethical practices and its use of synthetic diamonds exemplify a growing trend in the industry, reflecting consumers’ increasing preference for responsible and environmentally-friendly alternatives.
Useful Links:
1. Pandora Official Website
2. Lab-Grown Diamond Jewelry Market Statistics
