Pandora CEO Alexander Lacik says lab-grown diamonds are prioritized for price and design

Millennials and Generation Z are increasingly shaking up the historic market by shunning the naturally sparkling rock for man-made, lab-grown alternatives. But despite claiming to be the most environmentally conscientious generation yet, young people’s obsession with lab-grown diamonds isn’t because they prioritize the great outdoors—at least, that’s according to Pandora’s CEO.

“When we talk about product choice, there are only two things that actually drive behavior,” Alexander Lacik, who spearheads the world’s largest jeweler, told Fortune. 

“You may claim that you do other things….,” he adds. “But design is absolutely the most important aspect of your purchase decision on a product—and the second criterion is price.”

The Copenhagen-based company, famed for its charms, didn’t have any presence in the diamond industry until 2021. That was, until it realized it could “democratize” the sparkling stones for the masses with affordable lab-grown alternatives.

The company first tested the waters with its Pandora Brilliance collection on the British high street and following a successful launch, has since rolled the range out to the U.S., Canada, Australia, Mexico and Brazil. 

Last year, revenue from sales of its lab-grown diamonds reached 265 million Danish Krone ($38.5 million) and by 2026 the Danish retailer is aiming to bring in the billions. Meanwhile, its share price nearly doubled in 2023 and is showing no signs of slowing down—this week, Pandora’s stock rose to a record-breaking high.

“As a brand, we sell to 15-year-old girls and 65-year-old women,” Lacik says, with the caveat that mostly millennials and Gen Z are shopping its…