Lab Grown Diamonds Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Nature (Colorless, Colored), By Carat (Below 2 Carat, 2-4 Carat, Above 4 Carat), By Distribution Channel (Offline, Online), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 29.66 Billion
CAGR (2026-2031)	11.01%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 55.51 Billion

Market Overview

The Global Lab Grown Diamonds Market will grow from USD 29.66 Billion in 2025 to USD 55.51 Billion by 2031 at a 11.01% CAGR. Lab grown diamonds are synthetic gemstones manufactured in controlled environments using High Pressure High Temperature or Chemical Vapor Deposition methods, ensuring they possess the identical chemical and physical attributes of mined stones. The market is primarily propelled by rising consumer demand for ethically sourced luxury goods and the significant price advantage these stones offer over natural counterparts, which appeals to budget conscious buyers. According to the Gem and Jewellery Export Promotion Council, in the fiscal year 2023 to 2024, the provisional gross export value of polished lab grown diamonds from India was approximately USD 1,402.3 million.

However, a significant challenge impeding market value expansion is the rapid depreciation of retail prices driven by manufacturing oversupply. This consistent price erosion creates uncertainty regarding the residual value of the product, potentially deterring investment focused consumers and squeezing profit margins for retailers holding older inventory. The volatility in pricing structures complicates long term inventory planning and may impact the perceived exclusivity of the product category.

Key Market Drivers

The growing adoption by major jewelry brands and fashion retailers has fundamentally legitimized the sector, transitioning lab-grown diamonds from a niche alternative to a mainstream luxury staple. Large-scale retailers are increasingly integrating these stones into their core product lines, leveraging their expansive physical and digital networks to educate consumers and normalize the product category. This strategic shift is evident in the performance of key market players who have successfully tapped into the accessible luxury segment, validating the potential for high-volume sales through established retail channels. According to JCK Magazine, February 2025, in the 'Pandora Posts Strong Results, Slows Lab-Grown Rollout' report, Pandora’s lab-grown collection recorded a comparable sales increase of 43% in 2024, highlighting the commercial viability of branded synthetic offerings.

Concurrently, the rising consumer demand for affordable and accessible luxury is reshaping purchase habits, particularly within the bridal and fashion jewelry segments. As production efficiencies drive down wholesale costs, retailers can offer larger, higher-quality stones at a fraction of the price of natural diamonds, directly appealing to value-driven buyers. This value proposition has triggered a massive volume surge, ensuring that while per-unit prices may decline, the overall penetration of the product increases. According to the Israeli Diamond Industry, January 2025, in the '2024 Jewelry Market: U.S. Sales Grew Despite Challenges' article, unit sales of finished lab-grown diamond jewelry surged by 43% in 2024 compared to the previous year. This dominance is particularly visible in the bridal sector, where, according to Forbes, in 2025, lab-grown stones accounted for 52% of all engagement ring center stones in 2024.

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Key Market Challenges

Rapid depreciation of retail prices, driven by manufacturing oversupply, constitutes a critical barrier to value expansion in the global lab grown diamonds market. As production capacities expand unchecked, the resulting surplus forces a continuous reduction in unit prices, which severely impacts total market revenue. This consistent price erosion diminishes the perceived exclusivity of the product and creates uncertainty regarding residual value, discouraging consumers who view fine jewelry as a store of wealth or long-term asset. Consequently, retailers face shrinking profit margins on existing inventory and encounter significant difficulties in long-term financial planning due to the inherent volatility of pricing structures.

The direct impact of this value contraction is substantiated by recent trade performance data which reflects a downturn in revenue generation. According to the Gem and Jewellery Export Promotion Council, in the period from April 2024 to September 2024, exports of polished lab grown diamonds declined by 9.7% to USD 628.48 million compared to the same period in the previous year. This statistical decline underscores how falling price points are directly hampering overall market turnover, effectively impeding financial growth despite the continued physical availability of the product.

Key Market Trends

The market is witnessing a critical diversification beyond jewelry into high-tech industrial applications, specifically integrating synthetic diamonds into semiconductor supply chains. Manufacturers are leveraging the superior thermal conductivity of lab-grown stones to develop efficient heat sinks and wafers for power electronics, 5G networks, and electric vehicles, effectively addressing the limitations of traditional silicon. This strategic pivot towards industrial utility is attracting substantial government and private capital to scale production capacities for non-gemological grade materials. According to Semiconductor Today, December 2024, in the 'Spain gains European approval for €81m subsidy for Diamond Foundry Europe's new fab' report, the European Commission approved a direct grant of €81 million to support the construction of a solar-powered synthetic diamond wafer factory in Trujillo, validating the sector's industrial potential.

Simultaneously, the sector is experiencing a formalized shift towards third-party sustainability and carbon-neutral certifications to validate ethical claims and combat greenwashing. As scrutiny regarding the energy intensity of production grows, producers are adopting rigorous standards and transparent reporting to scientifically verify climate neutrality and origin traceability, distinguishing premium verified stones from generic mass-market alternatives. This focus on verified environmental stewardship is becoming a key differentiator for premium positioning, moving beyond vague marketing to quantifiable metrics. According to Breitling, September 2024, in the '2024 Sustainability Mission Report', the company achieved a reduction of Scope 1 and 2 greenhouse gas emissions by 21.6% compared to its 2022 baseline, largely driven by the transition to renewable energy within its lab-grown diamond supply chain.

Segmental Insights

The Online segment is anticipated to witness the most rapid expansion in the global lab-grown diamonds market, driven by the increasing consumer reliance on digital platforms for high-value purchases. E-commerce channels provide buyers with transparent pricing structures and access to broader inventories compared to brick-and-mortar retailers. Additionally, the availability of comprehensive educational content regarding diamond certification helps bridge the knowledge gap for potential customers. This growth is further supported by the rise of direct-to-consumer brands that utilize efficient online logistics to offer competitive rates and secure shipping options globally.

Regional Insights

North America maintains a dominant position in the global lab-grown diamonds market due to high consumer awareness and a well-developed retail sector. The region benefits from a favorable regulatory framework established by the Federal Trade Commission, which updated its jewelry guides to recognize the authenticity of laboratory-created stones. This regulatory support enhances consumer confidence and ensures marketing transparency. Additionally, the growing preference for sustainable and ethically sourced luxury goods drives demand across the United States and Canada. Consequently, these factors collectively support the region's status as the leading market for engineered diamonds.

Recent Developments

• In November 2024, Fenix Diamonds and Dholakia Lab-Grown Diamonds jointly acquired the Israel-based diamond grower Lusix for $4 million. The acquisition followed a competitive bidding process after Lusix faced financial challenges and sought creditor protection. The new owners announced plans to split the production capabilities while retaining the research and development facilities in Israel to ensure continuity in innovation. This collaboration aimed to strengthen the position of both acquiring companies in the lab-grown diamond market by integrating Lusix's solar-powered manufacturing technologies and sustainable production practices into their operations.
• In August 2024, Swarovski launched its 'Eternity Collection' as part of its Swarovski Created Diamonds range, featuring laboratory-grown diamonds set in recycled gold and silver. The collection highlighted the company's heritage of innovation by introducing a proprietary octagon cut designed to maximize brilliance and fire. Each diamond in the collection was certified by the International Gemological Institute and produced using renewable energy, reinforcing the brand's commitment to sustainability. The launch included a variety of jewelry pieces such as engagement rings, earrings, and pendants, aimed at offering timeless silhouettes for modern consumers.
• In June 2024, De Beers Group announced a significant strategic shift to cease the production of lab-grown diamonds for jewelry purposes through its Element Six unit. The company decided to transition the focus of its Element Six business entirely towards industrial and technical applications, such as those used in quantum computing and semiconductors. As part of this restructuring, the company planned to consolidate its synthetic diamond manufacturing facilities into a single technology hub in Oregon. This decision highlighted the company's intent to prioritize natural diamonds in the jewelry sector while leveraging its synthetic capabilities for advanced technological solutions.
• In March 2024, the lifestyle brand Kendra Scott expanded its product assortment by debuting its Lab Grown Diamond Collection. The new line was designed to offer fine jewelry styles at a more accessible price point, aligning with the brand's philosophy of delivering attainable luxury. The collection featured laboratory-created stones certified by the International Gemological Institute for pieces of 0.5 carats or larger, ensuring high standards of clarity and color. This strategic move aimed to cater to customers seeking everyday fine jewelry options while maintaining the material craftsmanship associated with the company, thus broadening its appeal in the fine jewelry market.

Key Market Players

• New Diamond Technology LLC
• Clean Origin LLC.
• ABD Diamonds Pvt. Ltd.
• Henan Huanghe Whirlwind CO., Ltd.
• Diamond Foundry Inc.
• WD Lab Grown Diamonds
• De Beers Group
• Swarovski AG
• Diam Concept
• Mittal Diamonds

By Nature	By Carat	By Distribution Channel	By Region
Colorless Colored	Below 2 Carat 2-4 Carat Above 4 Carat	Offline Online	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Lab Grown Diamonds Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Lab Grown Diamonds Market, By Nature:

• Colorless
• Colored

• Lab Grown Diamonds Market, By Carat:

• Below 2 Carat
• 2-4 Carat
• Above 4 Carat

• Lab Grown Diamonds Market, By Distribution Channel:

• Offline
• Online

• Lab Grown Diamonds Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE