Lab Grown Diamonds Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Lab Grown Diamonds Market is projected to expand from a valuation of USD 29.66 Billion in 2025 to USD 55.51 Billion by 2031, registering a CAGR of 11.01% during the forecast period. These synthetic gemstones are produced in controlled settings using High Pressure High Temperature or Chemical Vapor Deposition techniques, ensuring they maintain chemical and physical properties identical to natural stones. Growth in this sector is largely fueled by increasing consumer preference for ethically sourced luxury items and the substantial cost benefits these diamonds offer compared to mined alternatives, making them attractive to budget-conscious shoppers. Data from the Gem and Jewellery Export Promotion Council indicates that in the fiscal year 2023 to 2024, the provisional gross export value of polished lab grown diamonds from India reached approximately USD 1.40 billion.

However, the market faces a significant hurdle in the form of rapidly depreciating retail prices caused by an oversupply in manufacturing. This continuous erosion of value introduces uncertainty regarding the resale potential of these products, which may discourage consumers looking for investment-grade purchases and reduce profit margins for retailers sitting on older stock. Such volatility in pricing complicates long-term inventory management and threatens to diminish the perceived exclusivity associated with this product category.

Market Drivers

The integration of lab-grown diamonds by major jewelry brands and fashion retailers has played a pivotal role in legitimizing the sector, transforming it from a niche market into a mainstream luxury staple. Large-scale retailers are increasingly incorporating these stones into their primary collections, utilizing their extensive physical and digital reach to educate customers and normalize the category. This strategic adoption is reflected in the success of key industry players who have effectively penetrated the accessible luxury market, demonstrating the potential for high-volume sales through established channels. For instance, a February 2025 report from JCK Magazine titled 'Pandora Posts Strong Results, Slows Lab-Grown Rollout' noted that Pandora’s lab-grown collection achieved a comparable sales increase of 43% in 2024, underscoring the commercial success of branded synthetic lines.

Simultaneously, shifting consumer behaviors toward affordable and accessible luxury are redefining purchasing patterns, especially within the bridal and fashion jewelry sectors. As manufacturing efficiencies reduce wholesale costs, retailers are able to provide larger, higher-quality stones at significantly lower prices than natural diamonds, attracting value-oriented consumers. This compelling value proposition has led to a substantial surge in volume, ensuring that market penetration grows even as per-unit prices fall. According to a January 2025 article by the Israeli Diamond Industry on the 2024 jewelry market, unit sales of finished lab-grown diamond jewelry rose by 43% in 2024. This trend is particularly evident in the bridal market, where Forbes reported in 2025 that lab-grown stones comprised 52% of all engagement ring center stones in 2024.

Market Challenges

The rapid depreciation of retail prices, stemming from manufacturing oversupply, serves as a critical impediment to value growth within the global lab grown diamonds market. As production capabilities expand without restriction, the resulting excess inventory drives a continuous decline in unit costs, which severely affects total market revenue. This persistent price erosion undermines the perceived exclusivity of the diamonds and generates uncertainty about their residual value, thereby deterring consumers who regard fine jewelry as a financial investment or long-term asset. Consequently, retailers are confronted with diminishing profit margins on current stock and face considerable challenges in long-term financial forecasting due to the unstable nature of pricing structures.

Recent trade performance data validates the direct consequence of this value contraction, revealing a downturn in revenue generation. According to the Gem and Jewellery Export Promotion Council, exports of polished lab grown diamonds fell by 9.7% to USD 628.48 million between April 2024 and September 2024 compared to the same timeframe the previous year. This statistical decrease highlights how declining price points are effectively hindering overall market turnover and financial growth, even as the physical availability of the product continues to exist.

Market Trends

The market is currently undergoing significant diversification beyond jewelry, expanding into high-tech industrial applications such as the integration of synthetic diamonds into semiconductor supply chains. Manufacturers are utilizing the exceptional thermal conductivity of lab-grown stones to create efficient heat sinks and wafers for power electronics, 5G networks, and electric vehicles, thereby overcoming the limitations associated with traditional silicon. This strategic shift toward industrial usage is drawing considerable government and private investment aimed at scaling production for non-gemological materials. For example, Semiconductor Today reported in December 2024 that the European Commission approved an €81 million grant to support Diamond Foundry Europe in constructing a solar-powered synthetic diamond wafer factory in Spain, confirming the sector's industrial promise.

Concurrently, the industry is shifting toward formalized third-party sustainability and carbon-neutral certifications to verify ethical claims and counter greenwashing. As concerns regarding the energy intensity of production intensify, producers are implementing strict standards and transparent reporting mechanisms to scientifically prove climate neutrality and trace origins, distinguishing premium verified stones from generic mass-market options. This emphasis on verified environmental stewardship serves as a primary differentiator for premium branding, moving beyond vague marketing assertions to measurable outcomes. According to Breitling's '2024 Sustainability Mission Report' from September 2024, the company successfully reduced its Scope 1 and 2 greenhouse gas emissions by 21.6% against its 2022 baseline, a result largely attributed to transitioning its lab-grown diamond supply chain to renewable energy.

Key Players Profiled in the Lab Grown Diamonds Market

• 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

Report Scope

In this report, the Global Lab Grown Diamonds Market has been segmented into the following categories:

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
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Lab Grown Diamonds Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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