Editor’s Note
This article highlights the rapid ascent of the lab-grown diamond market, projected to grow from $25.9 billion in 2024 to nearly $100 billion by 2034. As these stones capture an increasing share of the total diamond market, they are reshaping the industry landscape.
The facts are impressive: The global market for lab-grown diamonds has grown from humble beginnings to $25.9 billion in 2024. Analysts predict explosive growth to up to $97.85 billion by 2034 – representing an annual growth rate of over 14 percent.
For comparison: The entire diamond market is estimated at about $100 billion for 2024. Lab-grown diamonds could already account for 10 percent of the total diamond market by 2030. A slow-motion revolution that is now gaining serious momentum.
Particularly noteworthy: In the US, over 50 percent of all polished diamonds sold since summer 2023 come from the lab. The American market dominates globally with 70 percent of all lab-grown diamond jewelry sales – a clear indicator of where the journey is headed.
The most obvious driver of the boom is price. Lab-grown diamonds cost 30 to 50 percent less than natural diamonds of the same quality. For consumers, this means larger stones, better quality, or simply more money in their wallets. A 1-carat lab-grown diamond costs an average of $1,200 today – just a few years ago it was over $3,400.
This price dynamic has an interesting flip side: Since 2020, prices for lab-grown diamonds have fallen by 74 percent. What initially looks like a problem is actually a sign of the industry’s rapid scaling and efficiency gains.
Unlike natural diamonds, lab-grown diamonds are created under controlled conditions. The result: Over 95 percent of all lab-grown diamonds fall into a very narrow quality range for color and clarity. They are often purer than their natural counterparts, as they are free from the randomness of geological processes.
The two main processes – CVD (Chemical Vapor Deposition) and HPHT (High Pressure High Temperature) – have evolved rapidly. CVD is considered the superior process as it produces purer diamonds with fewer impurities and offers better price transparency.
This is where it gets interesting for anyone focused on value retention: Lab-grown diamonds have practically no resale value. While natural diamonds typically retain at least 50 percent of their original price, lab-grown diamonds are primarily intended for personal enjoyment.
This is not a bug, but a feature for certain buyer groups. Millennials and Gen Z increasingly prioritize sustainability and ethical sourcing over traditional investment value. For them, a diamond is a piece of jewelry, not a capital investment.
A crucial turning point came in 2025: The renowned Gemological Institute of America (GIA) ended the detailed 4Cs grading for lab-grown diamonds and instead introduced simplified categories such as “Premium” and “Standard.” This decision underscores the fundamental difference between the two diamond types and could sustainably shape market perception.
Asia-Pacific leads in both production and demand. China and India dominate manufacturing, while consumption is fueled by a growing middle class. Europe is following the trend with sustainability-conscious consumers in Germany, France, and Italy.
Interesting for entrepreneurs: The online share in the jewelry trade is growing by 9 to 12 percent annually. By 2025, 18 to 21 percent of all jewelry transactions will be handled digitally. Among Gen Z, the online share is already at an impressive 42 percent.
While everyone is talking about jewelry, a gigantic market for industrial applications is developing in parallel. Lab-grown diamonds are perfectly suited for semiconductors, quantum computing, laser technology, and thermal conductivity applications. The semiconductor industry alone will grow to $1.3 trillion by 2029 – with an annual growth rate of 12.2 percent.
Education and relationships are the keys to success. The most successful lab-grown diamond retailers invest heavily in customer education. Create content that debunks myths and explains the benefits objectively. Transparency beats marketing gimmicks.
Partnerships with certified suppliers are essential. Look for suppliers with IGI or GIA certification. Authentication by reputable institutes builds trust and justifies prices.