Editor’s Note
The natural diamond industry is confronting a profound transformation as lab-grown alternatives, now meeting 70% of global jewelry demand, challenge centuries-old notions of scarcity and value. This article examines how technological disruption is reshaping a cornerstone of luxury.
The natural diamond industry, a symbol of luxury and exclusivity for over a century, is facing one of the most delicate moments in its history. The rise of synthetic diamonds, driven by China’s technological advancement, has rendered a model based on geological scarcity obsolete. Today, industrial laboratories can produce in seven days gems that nature takes up to one billion years to form, and they already supply 70% of the global demand for jewelry, according to data cited by the Financial Times. This transformation is causing a historic price collapse and threatening the viability of traditional mining.
The epicenter of this revolution is in China’s Henan province, where companies like Jiaruifu operate hundreds of large machines capable of generating three-carat stones—a common size for engagement rings—in just one week, according to an Financial Times report.
The rise of synthetic production has hit the big names in the sector hard. According to consultancy Tenoris, lab-grown diamonds already represent 17% of the retail market in the United States and more than half of engagement ring sales.
In 2024, multinational De Beers accumulated unsold inventory valued at $2 billion, the highest since the 2008 financial crisis, and closed its synthetic diamond subsidiary, Lightbox, after being unable to compete on price with Chinese brands, as reported by The New York Times.
Buyers under 40 prioritize sustainability, traceability, and cost, which has reduced the appeal of natural diamonds. In bridal jewelry, the trend is clear: a study by platform The Knot indicates that over 50% of couples in the United States already opt for lab-grown stones for their engagement ring.
The drop in demand has driven the price of smaller natural diamonds to lows of the last decade, generating unprecedented pressure on miners like Alrosa, Rio Tinto, or Petra Diamonds, according to Bloomberg.
For high-end jewelry, the challenge is twofold. On one hand, maintaining the perceived value of natural stones in a market where the average consumer no longer sees visible differences between the two options. On the other, responding to a cultural shift that believes a diamond does not need to have come from the Earth to symbolize love or commitment. Some jewelers see this as a direct threat to the concept of luxury; others interpret it as an opportunity to democratize access to high-quality gems.
