Lab-Grown Diamonds Market

The lab-grown diamonds market is worth USD 3,600.0 million in 2025 and reaches USD 4,590.4 million by 2035, compounding at 2.46% a year. The figure is built bottom-up: roughly 24 million polished carats of lab-grown gem diamonds sold in 2025 across engagement and bridal jewellery stones, fashion and everyday jewellery stones, larger fancy and coloured stones, and technical and optical grade single crystals, at an average realised wholesale price of USD 150 per carat, triangulated against production data, trade statistics and industry disclosures. Carats sold grow 9.0% a year as lab-grown stones take a larger share of diamond jewellery, but price per carat falls 6.0% a year as production capacity keeps expanding, so value grows only slowly. Natural diamonds and industrial diamond grit and powder are excluded. This study sits within our luxury goods and leisure coverage and follows the published Douglas Insights methodology.

Why do lab-grown diamonds keep getting cheaper?

Because diamonds made in factories are a manufactured product, and like other manufactured products their price falls as production scales and technology improves, unlike natural diamonds whose supply is limited by mining. Lab-grown diamonds are chemically and physically identical to mined diamonds, produced either by high pressure, high temperature presses that mimic conditions deep in the earth, or by chemical vapour deposition, which grows diamond layer by layer from carbon rich gas. Both methods have become far cheaper and faster, and production capacity has expanded enormously, particularly in India and China. As a result, wholesale prices for lab-grown diamonds have fallen dramatically over the past several years, and they now sell at a small fraction of the price of comparable natural diamonds. This is the central story of the market: volumes grow strongly as more consumers choose lab-grown stones, but falling prices offset much of that growth in value. The exclusive chapter of this report tracks wholesale and retail price trends by size and quality, since price deflation determines the market’s value.

What does this market include?

This study covers lab-grown gem quality diamonds and single crystal diamonds. Engagement and bridal jewellery stones cover polished stones used in engagement rings and wedding jewellery, the largest category. Fashion and everyday jewellery stones cover stones used in earrings, pendants, bracelets and other jewellery. Larger fancy and coloured stones cover larger stones and treated or grown coloured diamonds. Technical and optical grade single crystals cover high quality lab-grown crystals used in optics, electronics, heat spreaders and cutting tools. Natural diamonds, industrial diamond grit and powder used in abrasives, diamond simulants such as cubic zirconia and moissanite, and the value added by jewellery manufacturing and retail sit outside the boundary. Value is measured at wholesale price of polished stones and crystals.

How have lab-grown diamonds changed the engagement ring?

They have allowed couples to buy much larger stones for the same budget, and in the United States they now account for a large share of engagement ring centre stones, around half in some recent industry surveys. Younger consumers are often less attached to the idea that a diamond must come from the earth, and many are attracted by lower prices, larger sizes and the perception that lab-grown stones avoid the environmental and ethical concerns associated with mining. Jewellers have embraced lab-grown diamonds because they can sell larger stones at attractive margins. However, the collapse in prices raises questions about resale value and whether lab-grown stones will retain their appeal as symbols of commitment, and some brands have repositioned lab-grown diamonds as fashion jewellery rather than precious heirlooms. Meanwhile, natural diamond prices have weakened too, as lab-grown stones take market share. The model reflects lab-grown stones continuing to gain share of jewellery volume, with value held back by price declines.

What drives demand?

The first driver is price. Lab-grown diamonds cost far less than natural diamonds, making larger and better quality stones affordable.

The second driver is consumer attitudes. Younger buyers are more open to lab-grown diamonds and value perceived sustainability and ethics.

The third driver is retail adoption. Major jewellers and retailers now offer lab-grown diamonds widely.

The fourth driver is technical uses. Lab-grown single crystals are increasingly used in optics, electronics and heat management.

What restrains the market?

Three restraints are modelled. Price deflation is the first: rapidly falling prices limit value growth and squeeze producers’ margins. Perception and value retention are second: concerns about resale value and the meaning of a manufactured stone may limit appeal for bridal purchases. Disclosure and trust are third: undisclosed mixing of lab-grown and natural stones has prompted industry efforts on detection and labelling.

Which categories carry the value?

Engagement and bridal jewellery stones lead with 44% of 2025 value, USD 1,584.0 million. Fashion and everyday jewellery stones hold 38%, USD 1,368.0 million, and grow fastest in volume. Larger fancy and coloured stones account for 10%, USD 360.0 million, and technical and optical grade single crystals 8%, USD 288.0 million, the latter a growing industrial niche. Each category is modelled through 2035 by region.

Where are lab-grown diamonds sold?

North America dominates consumption with 58% of 2025 value, USD 2,088.0 million, growing only 1.25% a year as price declines offset rising volume in the most mature market. Asia Pacific holds 20%, USD 720.0 million, and grows fastest at 4.6%, with rising acceptance in India, China and elsewhere. Europe holds 14%, USD 504.0 million, at 3.2%. The Middle East contributes USD 180.0 million at 3.6%, Latin America USD 72.0 million at 3.4% and Africa USD 36.0 million at 3.0%. Production is concentrated in India and China. Six regional models sum to the global figure, with country tables in the Excel model.

Who produces lab-grown diamonds?

Production is dominated by Indian and Chinese growers. Chinese manufacturers lead in high pressure, high temperature production, while India has become a major centre for chemical vapour deposition growth and for cutting and polishing, with Surat the global hub for cutting both natural and lab-grown stones. Established diamond companies have had mixed experiences: De Beers entered lab-grown jewellery through its Lightbox brand and later stepped back. Technical grade crystals are supplied by specialists such as Element Six. The competitive chapter profiles leading growers, cutters and brands.

How are lab-grown diamonds priced?

Average realised wholesale price is USD 150 per carat in 2025 across all sizes and qualities, far below natural diamonds and far below lab-grown prices a few years earlier. Larger, higher quality stones command higher prices per carat, while small stones are very cheap. Retail prices include substantial jeweller margins. Continued expansion of production capacity drives prices down further, which is the reason for the strongly negative price leg. The pricing chapter publishes price trends by size and quality.

How do the scenarios diverge by 2035?

The base case carries 9.0% growth in carats and a 6.0% annual price decline for a 2.46% revenue CAGR and USD 4,590.4 million in 2035. The price-collapse scenario, in which oversupply drives prices down faster, sets the legs at 6.0% and minus 9.0%, so value shrinks to near USD 2,510 million. The stabilisation scenario, in which capacity growth slows, prices stabilise and adoption broadens, sets them at 11.0% and minus 4.0%, carrying the market past USD 6,790 million. Each 1-point change in carat growth moves the 2035 figure by roughly USD 450 million. Confidence is low given the pace of price deflation.

Which rules and standards apply?

Three layers matter. Disclosure and labelling rules come first: regulators require that lab-grown diamonds be clearly identified as laboratory grown, and consumer protection authorities have acted against misleading marketing. Grading and identification standards are second: laboratories grade lab-grown diamonds and screening devices detect them to prevent undisclosed mixing. Trade rules are third: tariffs and customs classifications affect trade flows between producing and consuming countries. The regulatory chapter maps these requirements.

Will lab-grown diamonds become a commodity?

Much of the market is already behaving like a commodity, with prices driven by production capacity rather than rarity, and the question is whether brands can create lasting value on top of it. Some jewellers are building brands around design, sustainability claims or specific quality guarantees, while others treat lab-grown diamonds as inexpensive fashion materials. Technical uses, where diamond’s hardness and thermal conductivity matter more than appearance, may offer more stable value. The model assumes continued commoditisation of standard gem stones, with branded and technical niches retaining higher value.

Douglas Exclusive: the price deflation tracker

This report tracks, by size, quality and channel, wholesale and retail prices of lab-grown diamonds, production capacity additions and share of jewellery demand, converting jewellery demand into carats and value by category and region. Licence holders receive it as a maintained tab in the Excel model.

Methodology and receipts

The model is built bottom-up from carats: lab-grown diamond production and polished output, share of jewellery demand by region, category mix, and realised wholesale prices from trade and industry data, with natural diamonds, industrial grit and powder, simulants and jewellery manufacturing and retail value excluded. Every figure carries a numbered source and a confidence grade in the fact sheet above, and the working model ships with every licence. The next scheduled review of this study is September 2027.