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Pandora Expands Lab-Grown Diamond Sales In A Sustainable Move August 17, 2023 (0 comments)

Copenhagen, Denmark--In a bold move towards sustainable luxury, Danish jewelry magnate Pandora A/S is set to increase its sales of lab-grown diamonds. The company announced this week that it will introduce synthetic gems to three product collections and expand its market reach to Mexico, Brazil, and Australia.

[Image Credit: Virendra Saklani/Gulf News Archives]

According to a Gulf News report, already offering lab-grown diamonds in the US, UK, and Canada, Pandora's products, including a notable 2-carat synthetic diamond ring, are priced as high as $4,450. The decision to delve deeper into the synthetic diamond market comes after the company's decision in 2021 to exclude natural diamonds from its line-up, citing concerns over human rights abuses and environmental impact related to traditional diamond mining.

The report noted that the affordable starting price of $290 for lab-grown diamonds aligns with Pandora's commitment to delivering reasonably priced jewelry. A 2021 report from Stats & Research underscores the potential in this arena, forecasting an annual growth rate of 8.4% for the lab-made diamond market, surpassing the 5.6% growth of its mined counterpart. Despite its robust growth, the synthetic diamond market size remains much smaller.

In terms of demand, Pandora notes a soaring appetite for synthetic diamond jewelry. While it currently represents about 1% of its revenue in the first quarter, it emerged as the fastest-growing segment. This growth trajectory is impressive considering the limited distribution, with purchases restricted to the UK, US, and Canada.

The report noted that prioritizing sustainability, Pandora manufactures these diamonds using renewable energy, achieving a carbon footprint of a mere fraction (about 1/20th) of mined diamonds. Further enhancing their eco-friendly initiative, the company sets these lab-grown diamonds in pieces crafted from recycled silver and gold.

By the month's end, 700 stores across various markets, including Australia, will showcase the new collections. Plans to introduce some collections in Mexico and Brazil are slated for October, with a comprehensive launch in these regions by early next year.

In the report, Alexander Lacik, the Chief Executive Officer of Pandora, expressed high hopes for the lab-grown diamond category, emphasizing its potential in the brand's future.

For context, while natural diamonds were never central to Pandora's offerings, the company previously sold around 50,000 diamond pieces annually, a small fraction when contrasted with their overall sales of 100 million jewelry pieces per year.

Learn more in the entire Gulf News report.