Alexander Lacik, CEO of Pandora, the world’s largest jewelry maker, has forecast significant disruption in the diamond market over the next ten years. Speaking to Bloomberg TV and via phone interviews, Lacik estimated that lab-grown diamonds currently account for approximately 20% of the total market.
“This is causing major disruption,” Lacik stated. “Consumer perceptions are shifting rapidly.”
In the second quarter, Pandora reported sales of lab-grown diamond jewelry worth 61 million kroner (about $8.9 million), marking an 88% increase from the previous year. Despite this growth, lab-grown diamonds represent less than 1% of Pandora’s total sales. Lacik aims to boost this ratio, targeting annual sales of 1 billion kroner (around 3% of total revenue) by 2026. He anticipates continued strong growth in this sector.
Last year, Pandora adopted a new strategy to broaden its brand beyond its traditional focus on charms, positioning itself as a comprehensive jewelry brand. A key element of this strategy is making lab-grown diamonds more accessible to the middle class. Lacik noted that the production costs for lab-grown diamonds are about one-quarter to one-third of those for mined diamonds.
In June, Pandora launched its first collection of lab-grown diamonds in Denmark, its home market, and has received strong initial reception. These diamonds are also available in the UK, North America, Australia, Mexico, and Brazil, with plans for a global rollout.
“It’s selling surprisingly well in our Copenhagen store,” Lacik remarked. “We are the first to market lab-grown diamonds in Denmark, and the response has been very positive.”
Earlier this year, Pandora’s shares surged nearly 20% due to increased demand for lab-grown diamonds, leading the company to revise its financial guidance upwards. However, the stock’s momentum has since slowed, rising only 13% year-to-date. On Tuesday, Pandora’s stock gained about 1.2% in Copenhagen following another guidance upgrade late Monday, a move that analysts suggest was already anticipated.