Editor’s Note
The recent surge in lab-grown diamond stocks, highlighted by major price cuts from international players, signals a pivotal shift in the gem industry. This article explores whether synthetic gems are poised to become the market’s new favorite.
On January 27, the lab-grown diamond sector performed strongly. Huanghe Whirlwind hit the daily limit-up, while Sifangda and Huifeng Diamond rose over 8%. Guojijingong and Power Diamond gained over 4%, with Woerde and Zhongbing Hongjian following the upward trend.
Recently, De Beers, the world’s largest natural diamond producer, announced a significant price reduction for diamonds over 0.75 carats at a diamond auction. This marks the group’s first clear price-cutting move in over a year. The reason behind this may be that diamonds “grown” by scientists are aggressively capturing the jewelry market. This industrial transformation driven by technological development is reshaping the consumer market.
Although the specific reduction percentage was not disclosed, the adjustment focused on mid-to-high-end natural diamond categories, drawing industry attention to changes in diamond market supply and demand and shifting consumption trends. This is already the third consecutive year of proactive price cuts by De Beers, following a 40% reduction for mainstream products in 2023, two reductions of 10%–15% in 2024, and structural adjustments in 2025.
Founded in London in 1888, De Beers’ slogan “A Diamond is Forever” has had a profound market impact. It once controlled 90% of the global diamond supply and still controls about 60% of the world’s rough diamond trade.
The underlying reason is the comprehensive collapse of the price system. The RapNet Diamond Price Index shows that in 2025, the price of 0.5-carat everyday consumer-grade diamonds fell over 20% for the year. A diamond ring worth 18,000 yuan a decade ago now has a recycling price of only 180 yuan, a depreciation rate of 99%. The phenomenon that diamonds “do not retain value” is becoming widely known in the market.
This price adjustment is seen by industry insiders as a direct response to the current changes in the market environment. On one hand, the high-inflation environment and macroeconomic uncertainty continue to suppress demand for high-end discretionary consumption, with jewelry retail recovery in core markets like the US and China showing significant divergence. On the other hand, the penetration rate of lab-grown diamonds in the mid-range and bridal markets continues to increase, creating dual competition with natural diamonds on both price and value. Against this backdrop, inventory turnover for mid-to-high-end natural diamonds is under pressure, challenging the stability of the price system.
However, De Beers did not implement a comprehensive price cut but only targeted adjustments for mid-to-high-end products. This indicates the company’s strategy is not simply trading price for volume but rather attempting to release phased market pressure and restore confidence in the diamond industry while maintaining the long-term value narrative of natural diamonds.
In recent years, with technological and industrial advancements, lab-grown diamonds have achieved mass production.
Among these, the High-Pressure High-Temperature (HPHT) method is one of the more traditional diamond synthesis techniques. Using high-purity graphite as the main raw material, along with catalysts and other materials assembled into a synthesis block, the block is placed into a cubic press. Temperature and pressure are then adjusted, and under high-temperature, high-pressure conditions, the carbon atomic structure of graphite rearranges to form diamond crystals.
Unlike the growth process of natural diamonds, harvesting a one-carat lab-grown diamond can take as little as one week. Furthermore, lab-grown diamonds are nearly identical to natural diamonds in composition, appearance, and other aspects, with prices only about 1/10 of natural diamonds of comparable quality.
The affordable price has also made lab-grown diamonds popular among young consumers.
The “2025 Lab-Grown Diamond Industry Development Report” shows that the current market size for lab-grown diamonds in China is about 14 billion yuan, expected to exceed 102.5 billion yuan by 2030. As of now, global rough lab-grown diamond production capacity is about 40 million carats, with China’s capacity at about 25.2 million carats, accounting for approximately 63%. China is the core production force for lab-grown diamonds globally.
This industrial transformation, driven jointly by technology and changing consumer perceptions, is reshaping the competitive landscape of the global jewelry industry.