Cultivate the diamond industry has great prospects for development

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2023-11-28

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Cultivated diamonds refer to diamonds generated and manufactured by artificial methods that simulate the crystallization characteristics of natural diamonds, and are no different in nature from natural diamonds. In recent years, international jewelry giants such as De Beers, Swarovski and Pandora have launched a series of diamond products, and fashion brands such as LightMark have followed up in China. Overall, the industry is showing rapid growth.

The upstream and downstream profit margins in the diamond industry chain are the highest, about 60%, and the middle processing is only 10%. Upstream rough stones are mainly grown by HPHT method and CVD method. In 2020, the global diamond production capacity will be about 600-7 million carats, of which Chinese manufacturers account for about 50% of the total production capacity and monopolize almost all HPHT production capacity, mainly including Power Diamond, Yellow River Cyclone, Central South Diamond, Henan Diamond, etc. China has a strong voice in the upstream of the industrial chain.

Cultivated diamonds have obvious price advantages over natural diamonds. At present, the retail price has been able to achieve about 35% of natural diamonds, greatly reducing the threshold for diamond purchase. Liu Ren, co-founder of the domestic diamond brand Light Mark White Light, said, "The products 1 karat D color VS clarity sold by Light Mark White Light are of very good quality among diamond products. Its price in physical stores is now less than 30000 yuan, which is very easy to help young people realize carat freedom."

Compared with the process of mining diamonds will produce serious air pollution and damage to the surface, and the diamond synthesized in the laboratory is much more environmentally friendly. Mining diamonds emit 57000 grams of harmful carbon per carat, while breeding diamonds release only 0.028 grams per carat. In addition, the acquisition of natural diamonds requires the destruction of up to 1750 tons of irreparable and long-term uncultivated soil, while the cultivation of diamonds causes zero damage to the environment, which is more in line with the concept of sustainable development.

In December 2020, the National Jewelry and Jade Quality Supervision and Inspection Center issued a new version of the standard, clarifying the Chinese name as "synthetic diamond" or "laboratory-grown diamond", and canceling the classification and replacing it with quality evaluation.

In July 2018, the Federal Trade Commission (FTC) decided to remove the word "natural" from its definition of diamond and no longer recommend the use of the word "synthetic" (synthetic) to describe cultivated diamonds. This means that the status of cultivated diamonds is increasing, and the distinction from natural diamonds is further weakened.

From the perspective of the development stage of the industry, the opportunity for the development of the diamond industry has emerged, and the outbreak inflection point is coming: from the perspective of the industry space, the cultivation of diamonds is not only a partial replacement of natural diamonds. De Beers's current product positioning of guiding the cultivation of diamonds is expected to stimulate a new jewelry consumer market with a potential market space of 100 billion yuan. From the perspective of competition pattern, China is a global diamond producer and diamond consumer market, power Diamond, Yellow River Whirlwind, Zhongbing Red Arrow, etc. occupy most of the wool diamond market share. We believe that the cultivation of diamond development prospects!

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