De Beers Group has announced its intention to close Lightbox, its lab-grown diamond (LGD) jewellery brand, as part of a broader strategy to refocus its operations around natural diamonds. The decision is described as a step in executing the group’s “Origins Strategy”, which was unveiled in May 2024, aimed at simplifying operations and redirecting investment towards core segments.
As part of the wind-down, De Beers is in discussions with potential buyers regarding certain Lightbox assets, including inventory. The group confirmed that it will continue to support customers through warranties and after-sales service during the closure process.
Declining Lab-Grown Prices Prompt Exit
Launched in 2018, Lightbox positioned lab-grown diamonds as an alternative product to natural diamonds, introducing a transparent pricing model of US$800 per carat. Since then, wholesale prices for LGDs have declined by approximately 90%, aligning more closely with a cost-plus pricing structure.
This downward pricing trend, coupled with expanding supply, including production from China, and pricing pressures in retail channels, particularly in the US, has led De Beers to conclude that LGDs in jewellery are diverging significantly in value from natural diamonds. In response, the company has opted to cease its involvement in the LGD jewellery segment.
Commenting on the announcement, De Beers Group CEO Al Cook stated: “The persistently declining value of lab-grown diamonds in jewellery underscores the growing differentiation between these factory-made products and natural diamonds. Lightbox has helped to highlight the fundamental differences in value between these two categories.”
Focus Shifts to Industrial Applications via Element Six
While De Beers is exiting the LGD jewellery sector, it will maintain its presence in synthetic diamond production through Element Six, its subsidiary focused on industrial applications. Element Six will continue to produce CVD (chemical vapour deposition) synthetic diamonds at its Oregon-based facility, supplying sectors such as semiconductors and quantum technologies.
De Beers noted that Element Six has an established role in industrial diamond applications and will now concentrate on supplying synthetic diamonds for advanced technology sectors.
Cook added: “We are also excited at the growing commercial potential for synthetic diamonds in the technology and industrial space.”
Implications for the Jewellery Industry
De Beers’ decision to exit the LGD jewellery market marks a notable development in the ongoing distinction between synthetic and natural diamonds. It underscores a shift among legacy diamond producers to reaffirm the rarity and value proposition of natural diamonds in response to the commoditisation of lab-grown alternatives.
Jewellers can expect further divergence between the two product categories, particularly in pricing and marketing strategies. The closure of Lightbox may also influence the market dynamics of lab-grown diamond pricing and competition, particularly as newer entrants continue to expand low-cost production capabilities.
This move may lead to further consolidation of LGD supply among newer producers and prompt continued focus on distinguishing natural diamonds in the market.
