What Would Synthetic Materals Disrupt Next
SUPPLY TRIVIA
The disruption we’re seeing in jewelry from lab-grown diamonds is part of a much larger trend of synthetic and engineered materials reshaping multiple industries.
Diamond may be not forever. That’s what DeBeer learned during the past few years.
The rise of synthetic diamonds is reshaping the jewelry industry. Since lab-grown diamonds are visually and chemically identical to mined diamonds but can be produced at a fraction of the cost, consumers are increasingly viewing them as a more affordable substitute. This undermines the traditional scarcity-driven value proposition of natural diamonds, which for decades relied on controlled supply and branding strategies by major mining companies. DeBeer’s sales have been down sharply. By contrast, jewelry brands committed to lab-grown diamond, like Pandora, have seen rising sales and boosted stock prices.
This diamond market dynamic has happened elsewhere. Farm cultured pearls destroyed the natural pearl market. Smart Watch forces the traditional watch industry to stay in their luxury comfort zone.
But not all the synthetic can displace its traditional rivalry. Synthetic meat, for instance, used to carry a high hope to disrupt the giant animal farm/meatpacker industry, but after the hype was over, sales become stagnant and its market share is stuck at less than 1% of the traditional meat market.
While success is not guaranteed, the opportunities are real. Lab-grown, synthetic, and bioengineered materials are disrupting multiple industries, including luxury goods, healthcare, food, energy, and construction, all by replacing scarce, ethically fraught, or environmentally damaging natural resources with scalable, sustainable alternatives.
The diamond market is the most disrupted due to its high price differential to synthetic diamond, changing consumer tastes and needs, and the erosion of the perception that diamond is forever. When the authenticity lure is diluted, even jewelry retailers would feel the pain.