Synthetic products gain traction amid rising prices, ethical concerns

[Courtesy of Shinsegae Department Store]

As concerns about environmental pollution and animal cruelty mount, synthetic products manufactured in labs and factories are gaining popularity over traditional natural goods in South Korea.

Last week, Shinsegae Department Store’s Gangnam branch hosted a show to launch Swarovski’s lab-grown diamonds.

Swarovski, the first overseas jewelry brand to introduce synthetic diamonds to Korea in April, is holding a popup store at Shinsegae Department Store until June 25.

The store is also partnering with various other lab-grown diamond vendors to meet the rising demand.

Alod, Korea’s only domestically produced lab-grown diamond brand, is available in four locations, including the main and Gyeonggi branches.

Honest Seoul will also be introduced in three locations by the end of the year. The department store’s Gangnam branch, a hub for luxury shopping, has already hosted several lab-grown diamond popup stores, indicating positive market prospects.

Lotte Department Store is also embracing the trend. It operates The Grace London, ELand’s lab-grown diamond brand, in its Nowon, main, and Dongtan branches, with a new location opening in Jamsil in southern Seoul later this month.

In November 2023, Alod’s entry into Lotte Avenuel’s Jamsil luxury store generated significant buzz. Hyundai Department Store also hosted long-term popup stores for Alod and Honest Seoul as part of its market strategy.

The growing number of lab-grown diamond stores in department stores reflects changing consumer patterns.

Lab-grown diamonds are environmentally friendly as they eliminate the need for mining, which can cause significant ecological damage.

They also avoid the ethical issues associated with blood diamonds, which are often mined in conflict zones and sold to finance armed groups.

Physically, chemically, and optically identical to natural diamonds, lab-grown diamonds are priced at just 10-50 percent of their natural counterparts, making them increasingly popular, especially amid rising prices.

[Graphics by Song Ji-yoon and Minu Kim]

Market research firm Allied Market Research projects that the world lab-grown diamond market will expand from 33 trillion won ($23.93 billion) in 2022 to 81 trillion won by 2032.

In response to the trend of conscious consumption, retailers are also expanding their vegan offerings.

Consumers who avoid meat due to animal rights concerns are turning to plant-based alternatives.

Lotte Mart operates the Zero Meat Zone, a section dedicated to vegan foods, across 92 locations nationwide, offering around 40 different items.

Sales in this corner have increased by 10 percent on-year as of June 11.

Moreover, the country’s three major department stores are expanding popup stores for vegan fashion brands such as MARHEN.J, MUWM, and NOT OURS.

“Young people are increasingly aware of the environmental pollution and resource waste associated with the production of natural diamonds and meat,” said Kwon Jung-yun, a researcher at Seoul National University’s Consumer Trend Analysis Center. “Lab-grown diamonds are an appealing choice, both ethically and economically, contributing to their growing popularity.”