Uncertainties tied to fear of inflation, low growth numbers and global trade tensions that are being made worse due to the policies pursued by the Trump Administration have investors clutching at straws. It could be said that a similar level of ‘market anxiety’ is slowly infecting the diamond industry due to an entirely different reason: the exponential increase in popularity of lab grown diamonds. Stemming from what many refer to as a disruptive technology, panic has taken root amongst some industry players whilst others see the disruptive tech as nothing else, but as an opportunity.
Lab-grown diamonds which are also known as synthetic diamonds have gained acceptance exponentially attributed to the changing perceptions of consumers about the lab grown versions. The chemical and physical composition of lab grown stones are identical to their mined diamonds counterparts, despite the same characteristics, these lab grown versions sell for 90% less than natural stones.
Naysayers of lab grown diamonds often present negative opinions about the authenticity of lab-grown diamonds, nevertheless the facts based on trends speak for themselves – the rise of lab grown diamonds is indeed transforming the entire industry. Ask any individual who is involved in buying and selling diamonds, such as diamond brokers or wholesalers and they will say the same.
Brief Overview on the Evolution of Lab Grown Diamond Prices
Just about a decade ago, the prices of synthetic diamonds were not too far off from mined diamonds (10 % lower in price on average – carat for carat). However, within the last decade rapid technological advancements within the scope of HPHT (High Pressure – High Temperature) and CVD (Chemical Vapour Deposition) has enabled lab technicians to increase diamond productions significantly leading to oversupply which resulted in low price lab diamonds, which are currently at 80 to 90 % lower (carat to carat similar grade under the 4Cs) than natural diamonds.
The significant drop in prices and awareness on the positive ethical elements of lab grown diamonds boosted the synthetic’s market share. As a comparison, in 2015, the market share of lab-grown diamonds was only 1 % of total diamond sales, in 2024, the market share had increased to 20% with a significant portion of the 20% belonging to the diamond engagement ring segment.
The primary driver behind the increasing popularity of these lab grown stones are due to the buying behaviour of the new generation of consumers who are more practical. The younger generation of consumers prefer to pay 80 – 90% less and get not just larger stones, but higher quality stones within the context of the 4Cs. As far as consumers are concerned the synthetic diamond sphere is similar to generic medications that work as well as branded medications, at a much lower cost.
Another factor that is also helping the lab grown diamond industry niche to gain traction is the positive aspects of lab grown stones that are related directly to ethical and environmental concerns.
