Editor’s Note
A new report from the Natural Diamond Council examines misconceptions around lab-grown diamonds, focusing on terminology, sustainability claims and pricing. The council states the analysis aims to inform consumers and retailers, not to disparage any product.
The Natural Diamond Council has released a new report examining the current state, and misconceptions, of lab-grown diamonds.
The report addresses terminology, disclosure, sustainability claims and pricing, uncovering how the fast proliferation of lab-grown diamonds has brought a tidal wave of inaccurate and misleading claims, misinforming consumers about what they are buying. Compiling data from analysts and researchers, it aims to inform more nuanced conversations and help consumers make better choices.
However, The Natural Diamond Council has stated strongly that it is not intended to disparage or promote one diamond over another, but rather to serve as a resource for retailers, jewellers and consumers.
- More than 70% of laboratory-grown diamonds are mass-produced in factories in China and India.
- The manufacturing process is energy-intensive requiring sustained temperatures upwards of around 2000°F (1,093°C) and large amounts of water to cool reactors.
- The price of a 1.5-carat laboratory-grown diamond has fallen 86% from $10,750 in mid-2015 to $1,455 in 2025.
- Data supplied by analysts Edahn Golan on wholesale prices and Paul Zimnisky on retail prices shows that the wholesale price for a 1ct round near colourless (FGH) high-clarity (VS1) laboratory-grown diamond is now just 5% of what it was seven years ago in 2018 (i.e. it has fallen by 95%), while the retail price is 24% of what it was in 2018 (a fall of 76%).
- Analysis by Paul Zimnisky for the last 5 years shows that the average retail margin on laboratory-grown diamonds has increased over the period from 46% to 84%. Put another way this means the average mark-up on synthetic diamonds has increased from 85% to over 500%.
Due to mass production and technological efficiencies, the market has seen prices fall dramatically with retail prices now only 24% of their 2018 levels.
NDC states that this, combined with ambiguous marketing, means that fact-based education on diamonds is more critical than ever.
David Kellie, CEO of the Natural Diamond Council, said.
It comes after The Gemological Institute of America announced it would no longer use its globally recognised 4Cs grading system to evaluate lab-grown diamonds. Instead, it will label them as either ‘premium’ or ‘standard.’ The change marks a distinct moment for the sector, categorising lab-grown and natural diamonds differently for the first time and thus leading the way, alongside NDC’s report, to understanding and informing consumers on their differences.
Kellie added.
