Australia, with a population of approximately 26 million (comparable to the population of Beijing and less than that of Texas), boasts around 3,500 jewelry stores. Despite its relatively small size, this market garners significant attention from the International Intelligent Diamond Association (AIDI) due to its unique position as a Western country that is somewhat isolated from the rest of the world. While its diamond industry shares similarities with that of the United States, there are notable differences as well.
In an interview with AIDI, Craig Miller from Melbourne-based JC Jewels shared his insights into the rise of the synthetic diamond industry in Australia. He attributes this growth to the financial pressures on consumers' budgets. Although feedback suggests that the shift towards synthetic diamonds may not be overwhelmingly significant, the market appears divided.
A survey conducted by Jeweller magazine in October and November 2023 found that nearly 40% of Australian retailers agreed or strongly agreed that lab-grown diamond jewelry has become a significant part of their business over the past decade. However, 67% of suppliers disagreed or strongly disagreed with this sentiment.
Divergence in the Market
Who are these suppliers? The likely answer is well-known within the industry. Candy Chu, Director of Deer Honey Jewellery in Burleigh, Queensland, observes that consumers purchasing lab-grown diamonds are primarily in their 20s and sometimes in their 30s. While some are motivated by the perceived environmental benefits of lab-grown diamonds, most are driven by cost rather than investment value.
"They tend to be the type of customers who don't care much—they are not jewelry connoisseurs," Chu noted, adding that synthetic materials constitute only a small part of his business.
An anonymous jeweler highlighted that Australian consumers have a strong preference for personalized products. "They love quality. They want something personalized. They really appreciate high-end, handcrafted jewelry," he explained.
Focus on Responsible Sourcing and Environment
Compared to other markets, there is a stronger emphasis on responsible sourcing and environmental concerns in Australia. "Almost every promotion includes a significant educational component on the environmental, ethical, and sustainable aspects of lab-grown diamonds," said the jeweler. Shoppers frequently seek detailed information about product origins. "We lead an outdoor lifestyle, so there is a heightened environmental awareness. From a young age, there have always been campaigns urging us to keep the environment clean and not to litter."
The Future Outlook
While most diamond jewelry players refrain from explicitly stating the future advantages or disadvantages of lab-grown versus natural diamonds, this ambiguity reflects the current market situation. Who knows if the Australian market will experience a boom similar to the one seen in the United States?
AIDI will continue to monitor the Australian market closely. For further discussions or inquiries, please contact us at info@aidi.org.