The Real Reason De Beers Stopped Making Lab Grown Diamonds, and Why Lab Grown Diamonds Are the Future

De Beers, one of the most iconic names in the diamond industry, has been synonymous with luxury, tradition, and the mined diamond market for decades. However, recent developments have forced the company to face a reality it once refused to acknowledge: the growing popularity of lab-grown diamonds.  

The move to shut down De Beers’ lab grown diamond initiative, Lightbox, signals a significant shift in the diamond world, and it begs the question—why did De Beers abandon its venture into lab grown diamonds? 

In this article, we’ll explore the REAL reason behind De Beers’ decision to exit the lab grown diamond market and the reason behind the Lightbox closure. We’ll also examine how the lab grown diamond sector has defied expectations, and why the future of diamonds may no longer be defined by mining, but by innovation.  

 

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Why did De Beers launch Lightbox?

In 2018, De Beers made a bold move to enter the lab grown diamond market with the launch of a new brand, Lightbox. At the time, the company introduced the new product line as a “fashion” alternative to mined diamonds and not something intended for celebrating life’s greatest milestones,  but just the ‘fun’ light-hearted moments. 

“My sister Alana, our Ops manager and I were at the DeBeers Lightbox launch event in Las Vegas, 2018”, our Founder, Lauren Chang Sommer, recalls. “The way they positioned Lightbox and its product as if Lab Grown diamonds were good for ‘Sweet Sixteen’ gifts, but not for more momentous occasions or milestones.” 

Priced uniformly per carat, Lightbox was marketed as an affordable option for those seeking diamonds for non-traditional jewellery, fashion accessories and birthday gifts, rather than engagement rings or meaningful pieces that could one day become heirloom jewellery.  

Their approach of launching lab grown diamonds became clear when De Beers, who had long been associated with mining diamonds, viewed lab grown diamonds as a threat to its market dominance. In a bid to squash the competition, the company sought to control the narrative surrounding lab grown diamonds. 

“De Beers attempted to define Lab Grown Diamonds as inferior and less legitimate than mined diamonds, and somehow unworthy of investment,” says Sommer. “But as we well know, lab grown diamonds are not inferior, and some seek them out specifically because they are not mined.”  

By pricing their lab grown diamonds uniformly per carat rather than individually like mined diamonds, while positioning them in a fashion jewellery context, De Beers sought to undermine their credibility and nullify consumer interest in lab grown diamonds.  

What De Beers didn’t anticipate is that consumers are much wiser and more educated now. Consumers were no longer putty in their hands like they were in the 1950s, when De Beers launched their uber successful “Diamonds are Forever” campaign. More so, consumers had become suspicious of De Beers, saying one had to spend three months of their wages on the engagement ring.  

Even before De Beers launched Lightbox, consumers had already begun shifting towards valuing sustainability, transparency, and ethical sourcing and wanting to get more value for money. As environmental concerns, the high cost of mining, and the ethical implications of diamond extraction became more widely recognised, consumers increasingly turned to lab grown diamonds as a more responsible choice.  

What began as a niche market quickly grew into a dominant force, driven by a new generation of consumers who prioritised personal values over tradition.

The Decline of De Beers’ Lightbox Venture

Despite De Beers’ attempt to position Lightbox as a low-cost, trendy option, the brand’s lab-grown diamond product was met with a lukewarm response. Lightbox never quite gained traction, certainly not enough to outcompete other brands who had already established themselves in the lab-grown diamond market, and other brands embraced lab grown diamonds for Bridal – a category Lightbox originally avoided. 

By 2024, De Beers was forced to admit that its lab grown diamond venture was not performing as expected. The company took a massive $2.9 billion impairment charge, a write-down that essentially acknowledged the failure of Lightbox contributed to the losses at DeBeers as a viable long-term business.  

In the same year, De Beers quietly closed its Lightbox factory, signalling its retreat from the lab grown diamond space.  

De Beers’ decision to exit the lab grown market is a clear indication that its strategy had failed. By positioning lab grown diamonds only in a fashion jewellery context, they left the lab grown diamond jewellery market wide open for their competitors.  

Lightbox’s failure wasn’t a result of a lack of consumer interest in lab grown diamonds, but rather a direct result of De Beers’ inability to adapt to the changing landscape of the diamond industry, nor to increasing consumer intelligence.

 

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Lab Grown Diamonds: A Market on the Rise

While De Beers was forced to retreat from the lab grown diamond market, the rest of the industry was booming. 

Lab grown diamonds are rapidly gaining market share. The global lab grown diamond market is expected to reach $22.57 billion by 2027, driven by increasing consumer awareness, technological advancements, and growing demand for sustainable products.  

Lab grown diamond versus mined diamond ethics 

A major factor behind the rise of lab grown diamonds is the growing demand for ethical and sustainable jewellery options. The environmental and social impacts of mined diamonds, once a symbol of luxury and prestige, are now coming under scrutiny.  

The diamond mining industry has long been associated with deforestation, water pollution, and human rights abuses, particularly in regions where mining operations are poorly regulated. The term “blood diamonds” or “conflict diamonds” is a reminder of the dark side of diamond extraction. Today, consumers are becoming increasingly wary of the origins of their jewels, often searching for more ethical diamonds. 

Lab grown diamonds, on the other hand, are created using cutting-edge technology that mimics the natural diamond formation process. They are produced in highly controlled laboratory environments, where the carbon atoms are subjected to high pressure and temperature, just as they are in the Earth’s crust. Because of the way they are made, lab grown diamonds are not only conflict-free but also have a significantly smaller environmental footprint compared to mined diamonds. Our partners use Solar Power to grow lab diamonds. 

Lab grown diamonds are also chemically and visually identical to naturally formed diamonds. Even the most seasoned diamond expert cannot always tell the difference between a mined diamond and a lab grown diamond—because they are the same. 

Lab grown diamonds are a transparent, eco-friendly option for consumers wanting to make more socially responsible choices. As more and more people recognise the ethical and environmental issues associated with mined diamonds, lab grown diamonds, which offer the same brilliance and beauty they expect from a diamond but without the harmful consequences, are becoming a far more attractive choice.  

Affordability and Accessibility  

Another key factor driving the growth of lab grown diamonds is their affordability. Mined diamonds are often priced based on the 4 Cs—cut, colour, clarity, and carat—but the high cost of mining and the fact that they take thousands of years to form naturally add a significant premium to the final price.  

Lab grown diamonds, by contrast, are faster and more affordable to produce and, as a result, are typically sold at a fraction of the cost of their mined counterparts. Lab grown diamonds are also incredibly good value, allowing consumers to purchase a larger and more impressive stone that they might not otherwise have been able to afford had they opted for a mined diamond. 

The lower price point has made lab grown diamonds more accessible to a broader range of consumers. No longer are diamonds reserved only for celebrities and society’s most elite. As awareness of the product grows, lab grown diamonds are becoming increasingly popular choices for engagement rings, wedding bands, and other milestone events—an area where De Beers once had an iron grip.  

Technological Advancements and Quality Improvements  

One of the key reasons why lab grown diamonds have become so successful is the ongoing advancements in the technology used to create them, which have vastly improved their quality over time. 

Laboratories now use advanced methods like High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD) to create diamonds that match or even surpass the quality of natural stones.  

While early lab grown diamonds were often seen as inferior due to their visible differences in colour or clarity, these differences have been drastically reduced over the years. Today’s lab grown diamonds are virtually indistinguishable from mined diamonds, both in appearance and chemical composition.

The Future of Diamonds: Lab Grown Leads the Way

We hope this article clarifies the real reasons why De Beers stopped Lightbox and exited the lab grown diamond market.  

De Beers has sought to control the narrative that the closure of Lightbox was aimed at reinforcing their commitment to mined diamonds. While this may be true, as De Beers has always been committed to mined diamonds, it is not the whole truth. 

The fact is that De Beers severely underestimated the consumer shift to lab grown diamonds. They failed to convince consumers that lab grown diamonds were only for fashion and that they were unsuitable for the bridal market.

Consumer demand for more sustainable, affordable, and ethical options, as well as increasing consumer intelligence, has driven the growth of lab grown diamonds. People know that lab grown diamonds are real diamonds, with just as much beauty and value as their mined counterparts. 

“De Beers thought that consumers would think the same way they did—that lab-grown wasn’t a competitor [of natural], that it wasn’t made for bridal,” one executive is quoted as saying. “That turned out to be all wrong.” 

Their dismissal of the growing demand for more ethical and sustainable lab grown diamonds versus mined diamonds was ultimately what led Lightbox to become a money-losing venture. 

However, with De Beers’ retreat from the lab grown market, the stage is now set for other companies to take the lead. The lab grown diamond market is not only growing but also evolving into a major player in the luxury and fine jewellery sector. As consumers continue to prioritise ethical sourcing, sustainability, and affordability, lab grown diamonds are poised to redefine the diamond industry.  

For companies that specialise in lab grown diamonds, who are embracing innovation, transparency and consumer education, the future looks bright.  

“We are proud to be Australia’s original and leading lab grown diamond retailer, providing high-quality, responsibly sourced lab grown diamonds that align with the values of today’s more conscious consumer,” says Sommer 

As we look towards the future, the question is no longer whether lab grown diamonds will succeed—they already have. Rather, the question now becomes: How quickly will the industry adapt?  

The traditional mined diamond industry may have had a long and successful history, but the rise of lab grown diamonds signals a new era in the world of fine jewellery—one where the beauty and brilliance of diamonds now offers choice. 

De Beers’ exit from the lab grown diamond market marks the end of the era in which traditional mining giants could control the narrative surrounding diamonds. As consumer perceptions towards lab grown diamonds continue to positively shift and the market for lab grown diamonds, particularly in the bridal jewellery space, continues to grow, De Beers’ unwillingness to see lab grown diamonds as a genuine alternative to mined diamonds has left it trailing drastically behind.  

In the coming years, we expect to see lab grown diamonds dominate the market, driven by consumer demand for affordable, sustainable and ethical diamond alternatives. As the industry continues to evolve, one thing is clear: the future of diamonds is lab grown.

Discover the brilliance of MOI MOI Lab Grown Diamonds

There is no doubt that lab grown diamonds will play an increasingly central role in reshaping the future of fine jewellery, and we’re excited to be on that journey right now.  

Discover the incomparable beauty and brilliance of our very own Moi Moi Lab Grown Diamond Fine Jewellery today. All Moi Moi premium lab grown diamonds are Triple Ex rated (Excellent Cut, Polish and Symmetry) or feature a perfect Hearts & Arrows Cut to bring out the most incredible sparkle in your jewel.  

See for yourself why the future of diamonds is ethical, sustainable and lab grown.  

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