Editor’s Note
This article highlights the critical role of industrial diamonds, prized for their unmatched hardness and wear resistance, in driving the U.S. market. A key growth factor is the rising adoption of cost-effective and uniform lab-grown diamonds for machining hard materials.
The superior mechanical and thermal properties of diamonds have made their use in industrial cutting tools a key driver for the growth of the United States diamond market. Diamonds possess the highest known hardness and excellent wear resistance, making them ideal for cutting, grinding, drilling, and polishing extremely hard materials such as ceramics, composites, and metals.
Furthermore, the increased adoption of lab-grown industrial diamonds, which offer uniformity and cost efficiency, has further expanded their applications in advanced manufacturing and microfabrication. As the global manufacturing sector shifts towards automation and precision engineering, the demand for high-performance diamond-tipped cutting tools is rapidly increasing. Continuous innovation in diamond coating technologies and hybrid composites is also creating new opportunities for tool manufacturers, ensuring extended tool life, reduced maintenance, and lower production costs, ultimately driving robust growth in the industrial diamond sector.
The United States diamond market size was valued at USD 58.97 million in 2024. The market is projected to grow from USD 61.97 million in 2025 to USD 96.93 million by 2032, exhibiting a CAGR of 6.6% during the forecast period.
Diamonds are natural minerals composed solely of carbon atoms arranged in a unique crystal lattice called a diamond cubic structure, making them the hardest known natural material. Formed deep within the Earth’s mantle under extreme pressure and temperature, their brilliance, transparency, and high refractive index are highly valued, giving them exceptional sparkle. Diamonds are used not only as gemstones in jewelry but also for industrial purposes such as cutting, drilling, and thermal conduction. Furthermore, synthetic diamonds can be created in laboratories using advanced methods.
The market is driven by the rapid adoption of lab-grown diamonds in the bridal and fashion sectors, primarily due to their affordability and growing awareness of sustainability. The rise of digital retail and personalization through AR/VR try-on tools and omnichannel jewelry shopping is adding further momentum.
Moreover, the market is dominated by several major players at the forefront, including Brilliant Earth, LLC, ALTR Created Diamonds, CVD Diamond Inc., Labrilliante, WD Advanced Materials, LLC, and Diamond Foundry. Strong efforts aimed at broad portfolios, innovative product launches, and expanding geographic presence have underpinned the dominance of these companies in the U.S. market.
The superior physical and optical properties of diamonds, which promote their expanding use in the jewelry industry.
The high price of natural diamonds hinders market penetration and the expansion of application scope.
The shift towards personalized, fashion-sensitive jewelry designs creates new market opportunities.
Increased utilization of diamonds in cutting tools for industrial applications is the latest market trend.
Global supply chain instability and the availability of rough diamonds hinder market growth.
Based on type, the market is segmented into Natural and Synthetic.
The Natural segment is expected to dominate the United States diamond market share. The U.S. natural diamond segment remains strong, supported by the country’s long-established luxury jewelry culture and high consumer spending power. Growth is primarily driven by the bridal jewelry sector, where mined diamonds continue to symbolize trust and emotional connection.
The Synthetic segment is expanding at the fastest CAGR of 9.6% during the forecast period, driven by the rapidly growing consumer base favoring sustainable luxury and cost-effective alternatives. Younger buyers, especially Millennials and Gen Z, are driving the shift towards lab-grown diamonds for engagement rings and fashion jewelry due to their affordability and minimal environmental impact.
Based on product, the market is segmented into Rough and Polished.
Strong retail demand leads the Polished segment to show a dominant share.