Lab Grown Diamonds Market Size, Share, and Growth Forecast from 2025 - 2032

Lab Grown Diamonds Market Size and Share Analysis

The global lab grown diamonds market is anticipated to reach a size of US$ 24.5 Bn by 2025. It is predicted to witness a CAGR of 10.4% during the assessment period to attain the value of US$ 49 Bn by 2032.

The trend toward ethical consumption and environmental sustainability is likely to drive growth in the lab grown diamonds industry during the assessment period. By 2032, millennials and Gen Z are estimated to account for 70% to 75% of the market share of lab grown diamonds.

The inception of new technologies like nano-diamonds for industrial use are estimated to open new markets, especially in electronics and automotive applications. Enhancement in production methods is estimated to decrease the cost of lab grown diamonds. Increased competition in the market is likely to lead to further price reductions which are estimated to make affordable luxury a strong trend.

Customization is likely to emerge as a growing trend as consumers are seeking personalized diamonds in terms of cut, color, size, and inclusion of unique designs. Online platforms are likely to play a critical role in providing this customization experience.

Key Highlights of the Industry

• Design and fashion trends are estimated to affect the industry as lab grown diamonds are gaining traction in wedding jewelry and other luxury goods.
• Sustainability is likely to remain a primary driving force as consumers seek diamonds that are conflict-free and have a low carbon footprint.
• Online sales of lab grown diamonds are estimated to continue their dominance as e-commerce platforms expand their offerings.
• Established luxury jewelers like Cartier, Harry Winston, and Tiffany & Co., are likely to increase their lab grown diamond product lines to cater to growing demand.
• Lab-grown diamonds are becoming prominent in mainstream jewelry chains, thereby making them accessible to a broader demographic.
• In terms of nature, the colorless category is predicted to hold a share of 70% in 2025 owing to its resemblance to natural diamond.
• By application, the fashion segment is anticipated to hold a share of 35% in 2025 as lab grown diamonds are cost-effective for fashion applications.
• Europe lab grown diamonds market is estimated to hold a share of 28.4% in 2025 and witness a CAGR of 5.3% through 2032 as the region is finding uses for lab grown diamonds in industrial applications.
• Lab grown diamonds market in North America is set to register a market share of 16% in 2025 owing to the presence of several retail stores.

Market Attributes	Key Insights
Lab Grown Diamonds Market Size (2025E)	US$ 24.5 Bn
Projected Market Value (2032F)	US$ 49 Bn
Global Market Growth Rate (CAGR 2025 to 2032)	10.4%
Historical Market Growth Rate (CAGR 2019 to 2023)	12.5%

Customization to Emerge as a Key Trend in Europe by 2032

Sustainability is a growing concern in Europe, especially among Gen Z and millennials. This demographic makes up a substantial portion of the purchasing segment of lab grown diamonds. By 2032, they are estimated to account for 70% of lab-grown diamond sales in Europe, thereby following global trends. Europe is estimated to hold a share of 28.4% in 2025.

Ethical purchasing as well as customization is likely to emerge as a prominent trend among several European consumers. The region is estimated to see use of lab grown diamonds for industrial purposes like cutting tools, semiconductors, and electronics. The aerospace and electronics sectors are specifically estimated to witness a rise in demand for superior quality diamonds owing to their hardness, electrical properties, and thermal conductivity.

Germany’s emphasis on engineering and technology are likely to support industrial application of lab-grown diamonds. Lab grown diamonds are likely to see an uptick in use for medical applications like high-performance medical devices owing to their biocompatibility. Italy, known for its robust tradition in fine jewelry and high-end craftsmanship is likely to experience growth in demand for lab grown diamonds, especially in fashion jewelry.

Booming Online Retail to Augment Growth in North America

By 2032, lab grown diamonds in North America are estimated to become 30% to 40% cheaper compared to mined diamonds. Online retail will likely continue to lead the industry in the region with platforms like James Allen, Blue Nile, and Brilliant Earth that offer a wide selection of customizable lab grown diamonds.

The convenience and ability to view diamonds remotely will be appealing to consumers in North America. Traditional brick-and-mortar stores in the region will continue to incorporate lab grown diamonds in their offers. The U.S. is estimated to remain a dominant player in the market accounting for almost 80% of regional market share. North America is projected to hold a share of 16% in 2025.

Resemblance to Conventional Diamond Fosters Appeal of Colorless Diamonds

The colorless nature of lab-grown diamonds perfectly aligns with consumer preferences and conventional diamond aesthetics. Colorless diamonds are highly sought after for their timeless and classic appearance, that resembles features of superior-quality natural diamonds. This segment is projected to hold a share of 70% in 2025.

Lab-grown diamonds, specifically those with minimal coloration, offer a close match to the coveted characteristics of colorless mined diamonds. This appeals to the conventional standards of beauty in diamonds, combined with the ethical and sustainable advantages of lab-grown diamonds, positions colorless varieties as the dominant choice in the market, meeting the demands of consumers and the jewelry industry alike.

Affordability of Lab Grown Diamonds Facilitates Integration in Fashion Accessories

Fashion applications are set to capture the dominant share of 35% in the lab grown diamonds market owing to their alignment with contemporary consumer trends. Lab-grown diamonds, known for their ethical and sustainable characteristics, resonate with environmentally conscious consumers in the fashion industry. The versatility of smaller-sized diamonds below 2 carats makes them ideal for fashion jewelry, enabling intricate and stylish designs.

Affordability of lab-grown diamonds facilitates their integration into various fashion accessories. The convergence of ethical appeal, design flexibility, and cost-effectiveness positions lab-grown diamonds prominently in the fashion sector, driving their widespread adoption and market dominance.

Market Introduction and Trend Analysis

Consumers across the globe are seeking unique and personalized jewelry, especially for wedding bands and engagement rings. By 2032, 40% of engagement rings are estimated to feature lab grown diamonds as personal choices and customization in designs continue to gain popularity.

A survey by The Knot in 2022 revealed that 25% of couples in the U.S. purchased lab grown diamonds for their engagement rings. As the market matures, brand collaborations between lab grown diamond manufacturers and fashion designers or luxury brands are estimated to increase. Luxury brands focused on mined diamonds are likely to begin exploring lab grown diamonds to cater to the growing consumer interest for sustainability.

Historical Growth and Course Ahead

The lab grown diamonds market growth experienced a steady CAGR of 12.5% during the historical period. The period witnessed developments in production with significant improvements in CVD and HPHT methods, that decrease costs while improving diamond qualities.

The total cost of lab grown diamonds dropped from 50% to 60% of mined diamonds in 2019 to 30% to 40% by 2024, thereby enhancing their accessibility. Millennials and the Gen-Z population showed particular preference for lab grown diamonds, accounting for nearly 10% of the global diamond market by 2024. Luxury brands like Pandora and De Beers (Lightbox) expanded their lab grown diamond lines while prominent retailers stocked on lab grown diamonds.

Market Growth Drivers

Ethical and Sustainable Appeal to Augment Demand

Ethical and sustainable appeal of lab grown diamonds is a compelling driver for the growth of the industry. Consumers across the globe are prioritizing ethical considerations in their purchasing decisions, and this trend is particularly pronounced in the jewelry sector. Lab grown diamonds offer a solution to concerns related to traditional diamond mining, which is often associated with environmental degradation and ethical issues.

Consumers are drawn to lab grown diamonds because of their eco-friendly production process. Unlike mined diamonds, lab grown diamonds do not contribute to deforestation or habitat destruction, and they have a significantly lower carbon footprint. The absence of social and ethical concerns, like those related to exploitative labor practices or funding conflicts, make lab grown diamonds an appealing choice for conscientious consumers.

The transparency in the supply chain of lab grown diamonds is another factor contributing to the ethical appeal of the lab grown diamonds. Consumers can trace the origin of lab-grown diamonds with greater certainty, providing reassurance about the ethical sourcing of the gemstones. As sustainability becomes a central focus for consumers, the ethical and eco-friendly attributes of lab-grown diamonds are poised to continue driving the market's growth, shaping the future of the diamond industry.

Support from Retailers to Facilitate Widespread Adoption

Support from retailers has been a pivotal driver in the growth of the lab grown diamond industry, especially as prominent jewelry brands and online platforms embrace these diamonds and continue to expand their offerings. This support enhances consumer confidence and awareness, enabling lab grown diamonds to gain wider acceptance while penetrating mainstream markets.

Inclusion of these diamonds in major retail collections is another key factor contributing to the success of lab grown diamonds is the. Leading jewelry retailers, like Tiffany & Co., Pandora, Kay Jewelers, and Zales, have embraced lab grown diamonds as part of their product lines, thereby making them widely available to consumers who have been skeptical. For instance,

• Pandora introduced its lab grown diamond collection in 2021, and since then has seen robust demand.
• Reports indicating Pandora's lab grown diamond sales grew by over 50% in some markets in the first year of launch. De Beers, through its Lightbox Jewelry brand, launched a line of affordable lab grown diamonds resonated with younger consumers who value sustainability and ethical sourcing.

Market Restraining Factors

Rising Educational Barriers to Restrain Growth

Educational barriers present a significant challenge to the lab grown diamonds market, hindering their widespread adoption and acceptance. The limited awareness and understanding among consumers about the distinctions between lab-grown and natural diamonds is another key challenge in the market.

The jewelry industry also faces educational challenges, as traditional perceptions and biases may impede the integration of lab grown diamonds into established practices. Jewellers and retailers need to stay informed about the unique qualities and characteristics of lab grown diamonds to effectively communicate these aspects to consumers.

Lack of standardized terminology and consistent grading systems for lab grown diamonds further contribute to confusion. Establishing clear and universally accepted language to describe lab grown diamonds can facilitate consumer understanding and confidence in these products.

Addressing educational barriers requires collaborative efforts from industry stakeholders, including manufacturers, retailers, along with industry associations, to develop and implement educational campaigns. Increased awareness and knowledge will play a crucial role in fostering consumer trust and driving the broader acceptance of lab-grown diamonds in the market.

Market Growth Opportunities

Rising Technological Developments to Propel Innovation

The lab-grown diamonds market is presented with significant opportunities driven by the continuous growth in technological developments. Ongoing innovations contribute to the efficiency, scalability, and cost-effectiveness of lab-grown diamond production processes, creating a competitive advantage for industry players.

As technology evolves, the market benefits from improvements in diamond quality, allowing lab-grown diamonds to closely mimic natural diamonds in terms of optical and physical properties. Technological developments also offer opportunities for diversification and customization within the lab-grown diamond market.

Manufacturers can explore new methods, such as Chemical Vapor Deposition (CVD) and High-Pressure High Temperature (HPHT), to enhance the characteristics of lab-grown diamonds, meeting specific consumer preferences for color, clarity, and carat weight. Moreover, the integration of unique traceability technologies provides a transparent supply chain for lab-grown diamonds, addressing consumer concerns about the origin and authenticity of these gemstones.

Increased transparency aligns with the high demand for ethically sourced and sustainable products. As technology continues to progress, the lab grown diamond industry can leverage these developments to stay at the forefront of innovation, enhance product offerings, and further establish itself as a compelling and competitive alternative to mined diamonds in the jewelry industry.

Evolving Perceptions of Value to Contribute to Growth

The evolving perceptions of value in the lab grown diamonds industry are contributing to its growth and wider acceptance. Consumers are recognizing that lab grown diamonds are virtually indistinguishable from mined diamonds in terms of quality, appearance, and durability, thereby shifting their perception of value.

A key aspect of this shift is the understanding that lab grown diamonds, despite being cheaper, offer comparable quality and a similar aesthetic appeal as their natural counterparts. According to the Diamond Producers Association (DPA), the chemical, physical, and optical properties of lab-grown diamonds are identical to that of the mined diamonds, thereby helping boost their appeal among consumers seeking high-quality diamonds at affordable prices.

Lab grown diamonds are priced 30% to 40% lower compared to mined diamonds, improving their perceived value, especially for price-sensitive consumers. As per a study by the Boston Consulting Group in 2024, nearly 60% of millennials and 45% of Gen Z consumers are willing to buy a lab-grown diamond due to its affordability and ethical sourcing.

Increasing availability of certifications including the Gemological Institute of America (GIA) or the International Gemological Institute (IGI) has bolstered consumer confidence, improving the perceived value of lab grown diamonds as they are assured to be of high quality and authenticity.

Competitive Landscape for the Lab Grown Diamonds Market

The lab grown diamonds market is anticipated to undergo substantial expansion and change. The future of the lab-grown diamonds industry will likely be driven by evolving consumer preferences and developments in technology. As sustainability becomes integral to purchasing decisions, the market is set to benefit from the ethical and eco-friendly attributes of lab-grown diamonds.

Technological innovations will likely lead to enhanced production efficiency, cost-effectiveness, and the ability to customize diamonds, further broadening their appeal. Regulatory initiatives promoting transparency will play a pivotal role in building consumer trust. Collaborations between traditional and lab-grown diamond industry players are set to foster market integration.

Awareness campaigns will be crucial to dispel misconceptions while driving wider acceptance. As market competition intensifies, differentiation strategies based on unique selling propositions, such as innovative designs or specialized applications, will be essential.

Recent Industry Developments

• In November 2024, the Consumer Affairs Ministry held consultations to frame regulations for distinct marketing labels for natural and lab-grown diamonds. Scientists can create new diamonds similar to earth-mind diamonds but can’t market their gems using any other term than “synthetic diamonds.”
• In November 2024, True Diamond secured US$ 1 Mn in seed funding led by Titan Capital.
• In November 2024, Dholakia Lab-Grown Diamon and Fenix acquired Israeli LGD Firm Lusix in a US$ 4 Mn deal.
• In November 2024, Swarovski, an Austria-based jewelry brand, entered in the lab grown diamond sector, receiving positive reception in the China market.
• In November 2024, DANAT announced its plans to organize a workshop on lab-grown diamonds to equip participants with profound and comprehensive understanding of lab grown diamond characteristics.
• In October 2024, Princess of Seborga launched 55 Canccrie’s lab grown diamond jewellery in Surat.
• In October 2024, Jewelbox announced the launch of its new store in Delhi, marking a milestone in the brand’s mission to market luxury fine jewelry sustainable and accessible to the audience in India.
• In October 2024, Greenlab Diamonds extended its retail with a new store launch in Delhi.
• In October 2024, Firefly launched an affordable lab grown diamond jewellery collection for Diwali.
• In September 2024, Signet’s KAY Jewelers unveiled LGD engagement ring collection through its partnership with a renowned bridal designer Monique Lhuillier.
• In August 2024, Sarine posted a US$ 1 Mn profit owing to lab grown diamond, marking its recovery in the market.
• In June 2024, Pandora launched its lab-grown diamond collection in Denmark after successful debuts in the U.S., Australia, and the U.K.
• In May 2024, Réia Diamonds launched its line of products in Guwahati, featuring its stunning lab-grown diamonds.
• In March 2024, Aukera Grown diamond Jewellery announced the launch of its lab-grown polki jewellery line, the ‘Queen’s Reserve Polki Collection,’ as the brand opened its new store in Bengaluru.

Lab Grown Diamonds Market Report Scope

Attributes	Details
Forecast Period	2025 to 2032
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Oceania Middle East and Africa Latin America
Key Market Segments Covered	Manufacturing Method Nature Size Application Region
Key Companies Profiled in the Report	De Beers Group Diamond Foundry Chatham Created Gems Pure Grown Diamonds New Diamond Technology Scio Diamond Technology Corporation Element Six Washington Diamonds Corporation Rajesh Exports ALTR Created Diamonds
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Market Segmentation

By Manufacturing Method

• HPHT
• CVD

By Nature

• Colorless
• Colored

By Size

• Below 2 Carat
• 2 to 4 Carat
• Above 4 Carat

By Application

• Fashion
• Industrial

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Latin America
• Middle East and Africa

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