THELASTMILE Logistics Outside the Box
Taking a Shine to Lab-Grown Diamonds Marketed as an eco-friendly alternative to mined diamonds and offering more transparency, lab-grown diamonds are disrupting gemstone supply chains. Here’s some clarity:
Radiant Outlook The global natural diamond market was valued at $100.4 billion, while the global lab-grown diamond market was valued at $24 billion in 2022. The mined diamond market is projected to reach $155.5 billion by 2032 while the global lab-grown diamond market is projected to reach $59.2 billion by the same year, according to Allied Market Research. Retailers will continue to wed both options—lab-grown and mined diamonds—to meet customer preferences and price points. Consumers demand increased transparency in diamond sourcing and certification. Lab-Grown Stones Engage the Public General Electric first synthesized lab-grown diamonds in 1954, according to the International Gem Society (IGS)—using a high-pressure belt press to expose small seed crystals to temperatures of 2,912°F and atmospheric pressures of 100,000 atm. Demand for lab-grown diamonds has risen every year but they captivated the mainstream in 2017 and accounted for 18% of diamonds sold in the United States in 2023, according to diamond industry analyst Paul Zimnisky. Making the Green Cut? Though the production process is more energy intensive, lab-grown diamonds generally have a smaller environmental footprint than their natural counterparts, avoiding the use of mines and associated concerns including poor working conditions, ecosystem disruption, deforestation, and soil erosion. On average, mining companies move 250 tons of earth per carat of mined diamond. More than 60% of lab-grown diamonds are produced in China and India, where grid electricity relies on coal, according to the Natural Diamond Council. On average, producing one polished carat of lab-grown diamond releases approximately 511 kg of greenhouse gases. In comparison, 160 kg of greenhouse gases are released per one polished carat of mined diamond, according to IGS. Sources: Institute of Supply Chain Management, The Diamond Pro, International Gem Society, ABC News
“Green-ish” - Alexander Weindling, CEO of 100% lab-grown diamond company Clean Origin, on the stones’ sustainability and environmental footprint
The Many Facets of Lab-Grown Diamonds ♦ Possess the same physical and chemical properties as mined counterparts ♦ Formed under the same conditions: carbon is compressed under extreme temperatures and pressures ♦ Take weeks to months to cultivate while mined diamonds take millions of years to form ♦ Cost significantly less than natural diamonds; a one-carat lab-grown diamond costs about $1,200, while a similar natural diamond can cost $4,200, according to The Diamond Pro ♦ Can be customized. Labs can create diamonds in various shapes, sizes, and colors. Many Facets
96 Inbound Logistics • June 2024
Powered by FlippingBook