Editor’s Note
This article highlights the rapid expansion of Japan’s lab-grown diamond market, projected to grow at a CAGR of 16.77% through 2033. As synthetic diamonds become increasingly indistinguishable from their mined counterparts, this sector represents a significant shift in both consumer preferences and the global jewelry industry.
The Japan lab-grown diamond market is projected to grow from USD 511 million in 2024 to USD 2.2429 billion by 2033, with a compound annual growth rate (CAGR) of 16.77% during the forecast period from 2025 to 2033.
Lab-grown diamonds are created in laboratories or factories. Their composition and appearance are identical to natural diamonds. These diamonds are manufactured using technologies such as HPHT (High Pressure High Temperature) and CVD (Chemical Vapor Deposition). Lab-grown diamonds are generally of higher quality than natural diamonds as they are produced in a controlled environment under constant monitoring and quality control.
Increasing Industrial Applications
Due to their unique characteristics, lab-grown diamond products are used in various industries such as cutting tools, mechanical components, semiconductor devices, and abrasives, contributing to market expansion. Their inherent properties of hardness and strength make them suitable for polishing, drilling, cutting, and grinding operations across multiple sectors, including automotive. The thermal conductivity of synthetic diamonds facilitates their incorporation into electronic devices like diode lamps and computers, where they serve as effective heat spreaders. Therefore, these factors are driving the growth of the Japanese market during the forecast period.
Alternative Products and Quality Concerns
The Japan lab-grown diamond market faces significant challenges from competing products such as natural diamonds and readily available gemstones like sapphire, garnet, emerald, amethyst, and peridot. These alternatives possess many attractive features, including distinctive beauty, superior quality, and lasting durability, which are capturing consumer interest. Sales of lab-grown diamonds are declining due to consumer concerns about their color and durability. Such quality issues lead potential buyers to perceive lab-grown diamonds as inferior to alternatives, causing hesitation in purchases. Furthermore, low awareness surrounding synthetic diamonds is hindering the growth of the Japanese market during the forecast period.
Sustainability Trends Boosting Market Growth
The global sustainability movement is leading more people to choose the lab-grown diamond market. These diamonds avoid the demand for mining functions as their production does not damage forests or generate air pollution and greenhouse gases. The growing awareness of sustainability among Millennials and Generation Z is boosting market demand for ethically sourced diamonds procured through sustainable methods. Overlapping environmental concerns and ethical issues associated with conflict diamonds are leading consumers to choose lab-grown diamonds over conventional ones. Thus, all these factors are supporting the growth of the Japanese market during the forecast period.
In 2024, the HPHT method held a dominant share in the Japan lab-grown diamond market in terms of revenue. The growth of this segment is attributed to the fact that the HPHT method generally aids in developing higher-quality diamonds compared to the CVD method and is more prevalent in product development. Furthermore, this process closely resembles the manufacturing method of natural/mined diamonds, offering superior clarity grades and color quality. Therefore, all such factors are supporting the growth of this segment in the Japanese market.
However, the CVD segment is projected to dominate the Japanese market during the forecast period. The growth of this segment is due to manufacturers increasingly preferring the CVD process for developing lab-grown diamonds as it can grow diamonds faster and with less energy than the HPHT method. The development of CVD diamonds in a wide range of color variations further supports the growth of this segment in the Japanese market during the forecast period.
CarbonLab Co. Ltd.
Mokumeganeya Co., Ltd.
Apple Green Diamond Inc.
Pure Diamond Co., Ltd.
LaBrilliante LLC
PRMAL Inc.
EDP Corporation
The Japan lab-grown diamond market is categorized with a focus on type, technology, and end-user.
By Type
Colored
Colorless
By Technology
Chemical Vapor Deposition (CVD)
High Pressure High Temperature (HPHT)
By End-User
Jewelry and Fashion Industry
Electronics and Semiconductor Industry
Automotive Industry
