Lab Grown Diamonds Are Booming In Canada. Here’s Why

The popularity of lab grown diamonds is growing all around the world, including Canada. As preference for ethical and sustainable alternatives to mined diamonds grows, the Canadian jewelry industry is positioning itself as a key player.

This blog explores lab grown diamonds in Canada, why the lab diamond industry is booming in the land of maple leaf, market overview, and more.

Lab grown diamonds in Canada: an overview

The global lab grown diamond market size, valued at USD 22.79 billion in 2023, is set to grow to USD 74.45 billion by 2032. This increasing preference for manufactured diamonds across the world also includes Canada. The Canadian jewelry market has embraced lab diamonds for many reasons. And several factors in the country favor lab diamonds. Let’s look at what those aspects are.

Urbanization

Canada is one of the most urbanized countries, with cities, such as Toronto, Vancouver, and Montreal. 80% of the country’s population lives in cities. The retail markets in cities, whether physical stores or online stores, are vibrant, focusing on new trends. Lab grown diamonds are being adopted by many new-age retailers in these cities.

High disposable income

For populations living in cities, the disposable income tends to be higher. Moreover, these city-based consumers have a better exposure to trends in the jewelry, fashion, and diamond industries. With increasing incomes, these consumers have a high disposable income and enthusiasm to buy lab grown diamonds.

Sustainability

Canadian consumers have a high level of understanding of sustainability and are environmentally conscious. This also places Canadians in alignment with global ethical sourcing trends. The country has strict mining regulations and ethical standards, including in the diamond industry.

Retail market and consumer adoption

Canadian consumers, especially those in urban cities, such as Toronto, Vancouver, and Montreal, have shown an increasing liking and preference for lab grown diamonds. Canadian consumers are also opting for lab diamonds for engagement and wedding rings. Apart from that, the introduction of lab diamonds in the Canadian jewelry industry has made it easy and affordable for a wider consumer base to buy synthetic diamonds in Canada.

Gen Z and millennial buying behavior

For the Gen Z and millennial population in Canada, lab grown diamonds offer an attractive opportunity to buy diamonds that are valuable, sustainable, affordable, and are a natural fit to their preferences in multiple ways. These consumers choose lab created diamonds intentionally.

Preference for customization and transparency 

Conscious consumers in Canada prefer buying jewelry that provides transparency. They want to know where the lab grown diamonds were made, which laboratory, and expect detailed reports and certificates. Besides, the ability to buy lab grown diamonds from online platforms makes it easier to buy lab diamonds with transparency.

Lab diamonds fit modern relationships

An increasing number of couples in Canada are choosing lab grown diamonds for engagement and wedding rings and jewelry. For these couples, choosing lab diamonds instead of mined diamonds is about belief and values. Choosing ethical and sustainable alternatives is a reflection of the choices they make as a couple.

Lab grown diamonds are ethical

Lab grown diamonds are grown in safe environments in laboratories, far from any association to conflict, unethical mining practices, war, labor issues, or any social concerns. This appeals to the growing community of conscious Canadian consumers.

Lab diamonds are environmentally sustainable as they are manufactured in controlled laboratory environments. While diamond mining involves volumes of water and can cause water pollution, lab diamonds do not use as much water. Lab diamonds do not harm natural habitat, do not require digging land, and have minimal impact on the environment.

Affordability

Lab grown diamonds are 30 to 40% cheaper than mined diamonds. Synthetic diamonds in Canada are available at much lesser prices compared to mined diamonds. This factor makes these man made gems more accessible to a wider range of consumers, from Gen Z to millennials. As lab grown diamonds are chemically, physically, and optically similar to mined diamonds, a large population of Canadian consumers is embracing these diamonds as real diamonds.

Customers can buy a large carat weight and high-quality lab grown diamond within the same price they would pay for a small carat and low-quality mined diamond. Lab grown diamonds make large carat weight engagement rings easily accessible to Canadians.

Vibrant market structure

A study revealed that the North American market segment, which includes Canada, is the most lucrative for lab grown diamonds. Canada has a vibrant jewelry industry. For instance, the country has specialty retailers that specialize in artificial diamonds in Canada. They offer a wide range of lab diamonds, either manufactured in labs in Canada or imported from other countries, such as India and China.

Canada also has traditional jewelers who have included lab grown diamonds in their collections. These jewelers also offer certificates of authenticity, sustainability, and lab grown diamond certificates.

While the information and data about lab grown diamonds manufacturing in Canada is limited, the country is known for distribution of lab grown diamonds. Moreover, the Canadian jewelry industry has also incorporated eCommerce in a big way with many brands offering customized lab grown diamonds and all varieties of lab grown diamonds in Canada.

Lab grown diamonds in Canada: future outlook

As lab grown diamond manufacturing gets more advanced and brands offer more varieties of color, carat size, customization, etc., the popularity of lab grown diamonds in Canada is only set to increase. Here are some factors shaping the future of synthetic diamonds in Canada.

• One of the factors is the increasing awareness about manufactured diamonds. As brands take initiatives in educating consumers about lab diamonds, the industry is set for expansion.
• Many Canadian companies are conducting research and development in lab diamonds. These technological advancements will contribute to the growth of the lab diamond industry in Canada.
• New and contemporary brands are offering new lab grown diamond products with carat weight, color, cuts, customization, and personalization.
• Ecommerce has made lab grown diamonds highly accessible in Canada. With a growing acceptance and preference for ethical and sustainable diamonds, the online lab diamond industry is set to flourish.

Why is Canada a key market for lab grown diamonds?

Canada is one of the upcoming markets for lab grown diamonds, thanks to its tech-savvy population, an increased spending capacity, and appreciation for ethical sourcing. Canada has numerous urban centers, such as Toronto, Vancouver, and Montreal, all of which have a large multi-generational population. Moreover, Canada has been a diamond-mining country, and hence, has an evolved diamond industry. This combination of cultural, economic, and conscious consumers has led to an increased interest in lab grown diamonds in the country.

Cultural shift toward ethical luxury in Canada

• Canadians are redefining luxury by opting for ethical choices, including lab grown diamonds.
• Canadian couples buying engagement and wedding rings are opting for lab grown diamond engagement rings as a statement.
• Lab grown diamonds align with the values of the younger generations who support concerns around climate, environment, ethics, socio-political issues, etc.

Role of sustainability regulations and consumer awareness

Canada has high levels of regulatory structure and consumer awareness. Both these factors contribute to the adoption of lab diamonds in the country. The Canadian government shows high commitment to environmental sustainability with carbon emission policies and supply chain transparency.

Canadians have high environmental literacy and awareness. Moreover, organisations working towards sustainability spread awareness about issues such as habitat destruction, water pollution, and social issues related to diamond mining, and how lab grown diamonds are far from these issues.

Visual, chemical, and physical similarities

• Lab created diamonds are chemically identical to natural diamonds because both are made through the same process. Both the diamonds are made of pure carbon atoms.
• Both lab diamonds and mined diamonds have the same hardness rating of 10 on the Mohs scale, the same refractive index.
• Both the types of diamonds have the same refractive index and the same brilliance and fire.
• Both the diamonds are so identical that even trained gemologists cannot distinguish between the two without the use of equipment.

Price comparison in the Canadian jewelry market

One of the key reasons consumers opt for lab grown diamonds is its competitive pricing when compared to mined diamonds.

• In Canada, lab grown diamonds are around 50 to 70% cheaper compared to mined diamonds.
• Canadian customers can buy large carat weight and high-quality lab grown diamonds within the same price they would pay for small carat and low-quality mined diamonds.
• For example, a 1 carat lab grown diamond might cost CAD $1,200 to $2,000 whereas a 1 carat mined diamond might cost CAD $5000 and above.
• Canadian consumers opt for lab grown diamond engagement rings as they are more affordable and allow them to buy engagement rings featuring larger diamonds.

Certification and quality standards for lab grown diamonds in Canada

With a maturing lab grown diamond market, the need for proper certification is becoming an essential. For Canadian buyers of lab diamonds, understanding certification is an essential part of the buying process.

• Among the most recognized lab grown diamond certification bodies in Canada are the International Gemological Institute (IGI) and the Gemological Institute of America (GIA).
• The diamond grading institutions provide assessment reports covering the four Cs – cut, color, clarity, and carat weight, along with assessment of other parameters.
• Buying lab grown diamonds in Canada with certification from other reputed institutions offers assurance of diamond quality, origin, and more.

Role of eCommerce in Canada’s lab grown diamond growth

The rise of eCommerce has been a huge contributor to the growth of lab grown diamonds in Canada. It has made buying real diamonds easy and accessible to Canadians.

Online customization

Lab grown diamonds make customization easy. Customers can get diamonds made based on their preference, budget, and taste. With eCommerce lab diamond brands, customization and personalization of lab diamonds, especially for engagement rings, has become easier than ever. Ecommerce brands use sophisticated tools to provide 360 degree views of diamonds, making it easy for customers to buy diamonds remotely.

Direct-to-consumer brands

There is an increase in the number of DTC brands offering lab grown diamonds to Canadian customers. Moreover, many global online brands and lab grown diamond manufacturing brands, too, make it easy for consumers in Canada to buy lab made diamonds. Brands offer easy return, safe payment options, and certificates, making the online purchasing experience more transparent.

Wrapping up

Lab grown diamonds have a vibrant future in Canada. With its preference growing among consumers, and retailers offering better quality lab diamonds at affordable prices, along with customization options, the popularity of lab diamonds is increasing in Canada.

If you’re a retailer, a wholesaler, a jewelry designer, or an individual in Canada, looking to buy the best quality lab grown diamonds, you can trust Grown Diamond Corporation. The India and USA-based lab grown diamond manufacturing company offers a wide range of synthetic diamonds

As Canada’s lab grown diamond market gets more vibrant and expands, the future of lab diamonds is looking bright.