The French government recently issued a ruling regarding the terminology used for synthetic diamonds. In France, the terms "lab-grown diamond" and "cultivated diamond" will be prohibited, and synthetic diamonds must now be referred to exclusively as "synthetic diamonds."
Back in 2002, France passed a law stating that the term "diamond" could only be used for natural diamonds. Retailers are required to use "synthetic" to describe diamonds that are wholly or partially man-made, and the term "lab-grown diamond" can only be used outside of France.
A few months ago, in response to a request from a company in the synthetic diamond sector, France's Directorate General for Competition, Consumer Affairs, and Fraud Control (DGCCRF) launched a consultation to determine if the law should be revised. At the end of 2023, the Ministry of Economy, Finance, Industry, and Digital Sovereignty confirmed that the law would remain in effect.
Collectif Diamant, a French organization representing major jewelry industry participants, issued a statement emphasizing that "the international and national regulations regarding the commercialization of these synthetic gemstones are already in place, and we must comply. The industry remains highly cautious in this regard, firmly protecting the reputation of natural diamonds rather than synthetic ones."
The issue of terminology is critical for diamond producers, as lab-grown diamonds are becoming more widespread and face increased competition in the jewelry industry. Synthetic diamonds are often promoted as more sustainable, and even some luxury brands are incorporating them into their products. For instance, Fred, a jewelry brand under LVMH, launched its first collection featuring synthetic diamonds in September of last year.
De Beers also entered the lab-grown diamond market in 2018 with its Lightbox brand and began testing lab-grown diamond engagement rings in 2023. However, due to poor market response, the engagement ring line was discontinued in September 2023. De Beers stated that the test helped the company better understand lab-grown diamonds and the evolving market dynamics. Going forward, Lightbox will focus on affordable fashion jewelry and lab-grown diamond rough, while no longer offering lab-grown diamond engagement rings.
In October, De Beers announced an increased investment in promoting natural diamonds, allocating an additional $20 million to revive its classic "A Diamond Is Forever" advertising campaign. The goal was to meet consumer demand for natural diamonds in the United States and China during the holiday season, with the campaign reflecting the interests and values of a new generation in a modern format.