Lab-Diamonds projected to make up 20% of the Diamond Market in 2025
The diamond industry is undergoing a major transformation, and lab-grown diamonds are at the center of this shift with Lab-diamonds projected to make up over 20% of the global diamond market.
According to fortune business the global lab grown diamond market size was valued at USD 22.79 billion in 2023. The market is projected to grow from USD 25.89 billion in 2024 to USD 74.45 billion by 2032, exhibiting a CAGR of 14.11% during the forecast period.
This rapid growth signals a new era for the industry—one where consumers, retailers, and manufacturers are rethinking their approach to diamonds.
Why Are Lab-Diamonds Gaining Popularity?
The rise of lab-grown diamonds has been nothing short of extraordinary. While they made up only about 1% of global diamond demand in 2015, their share has skyrocketed in recent years, projected to pass the 20% benchmark in 2025. So, what’s driving this surge in popularity?
Lower Price Point
Perhaps one of the most compelling reasons for the rise in lab diamond popularity is their price point. These gems typically cost 30-40% (but sometimes even up to 90%) less than their mined counterparts, while offering identical physical, chemical, and optical properties. This affordability allows consumers to purchase larger stones or higher-quality diamonds with a lower budget.
Ethical Appeal
Lab-grown diamonds have surged in popularity due to their conflict-free nature. Unlike some mined diamonds that may come from regions with questionable labor practices or that fund conflicts, lab diamonds are created in controlled environments, giving consumers peace of mind about their purchase's ethical implications.
Environmental Considerations
The environmental footprint of lab-grown diamonds is significantly smaller than that of mined diamonds. Traditional diamond mining disrupts large areas of land and can lead to soil erosion, deforestation, and ecosystem damage. In contrast, lab diamonds require less energy and resources to produce, appealing to environmentally conscious buyers.
Changing Consumer Values
Modern consumers, particularly millennials and Gen Z, tend to value transparency, sustainability, and innovation. Lab-grown diamonds align perfectly with these shifting priorities, offering a forward-thinking alternative that resonates with younger buyers who are redefining luxury on their own terms.
Natural Diamonds: A Finite Resource
While lab-grown diamonds are on the rise, natural diamonds are a finite resource facing uspply declines. In 2024, global natural diamond production remained around 115 million carats in 2024—significantly lower than the 150 million carats mined in 2017.
Declining Mine Production
Many of the world’s most significant diamond mines are aging, with some nearing depletion. Although new mines occasionally come online there aren’t enough major projects in development to replace declining production from older mines.
No Significant New Diamond Mines in the Near Future
Unlike other commodities, diamonds have exceptionally long lead times for production. The Gahcho Kué mine in Canada, for instance, took nearly 25 years to develop before it started producing diamonds. This means that supply will remain limited for the foreseeable future, possibly increasing demand for lab-diamonds.
The Changing Landscape of the Diamond Market
The diamond industry is at a crossroads. Natural diamonds remain a symbol of luxury and rarity, but lab-grown diamonds are redefining consumer expectations.
The Evolving Role of Natural Diamonds in Luxury Jewelry
As natural diamond supply becomes more constrained, their status as a rare and exclusive luxury product may become even more pronounced. High-end consumers may increasingly view natural diamonds as an investment, while lab-grown diamonds become the go-to choice for everyday jewelry.
The Potential for Lab-Grown Diamonds to Surpass 20% of the Market
With lab-grown diamonds already making up over 20% of the diamond jewelry market, the question remains: how much further can they grow? Their rapid adoption suggests they could take an even larger share, especially as technology advances and production costs continue to decline.
