De Beers Abandons Lab-Grown Diamond Brand, Focuses on Natural Diamonds

De Beers is shutting down its lab-grown diamond jewelry brand, Lightbox, as part of a strategic retreat from selling synthetic gems to consumers. The move aligns with De Beers' renewed commitment to natural diamonds and follows Anglo American's efforts to streamline operations. De Beers' synthetic diamond division, Element Six, will now focus on industrial markets. The exit from synthetic jewelry comes amid market turbulence, including weak demand from China and an oversupply of lab-grown diamonds.

De Beers, the world's largest diamond producer by value, has announced the closure of its lab-grown diamond jewelry brand, Lightbox. This strategic move aligns with De Beers' renewed focus on natural diamonds and follows Anglo American's broader restructuring efforts [1].

The decision to shut down Lightbox comes amidst significant market turbulence. Weak demand from China and an oversupply of lab-grown diamonds have contributed to falling prices in the global diamond market [1]. De Beers initially ventured into the lab-grown jewelry market in 2018, but the company halted production in June 2022 as part of a five-year plan to reassert its dominance in the natural diamond sector [1].

De Beers' synthetic diamond division, Element Six, will now concentrate exclusively on industrial applications. This shift capitalizes on the growing potential for synthetic diamonds in future-facing technologies. The closure of Lightbox is part of a broader restructuring effort by Anglo American, which includes a $2.9 billion writedown in February 2023, following a $1.6 billion writedown in 2022 [1].

Despite these financial challenges, Anglo American's chief executive, Duncan Wanblad, suggested that De Beers might remain part of the group until 2026, contingent upon market recovery. The company's strategic retreat from synthetic jewelry aligns with its iconic "Diamonds are Forever" slogan, emphasizing the enduring value of natural diamonds [1].

References:
[1] https://www.indexbox.io/blog/de-beers-shuts-down-lab-grown-diamond-brand-lightbox/