Editor’s Note
This article explores the rise of lab-grown diamonds, detailing how their chemical and physical properties are identical to natural stones. It highlights a significant shift in the gemstone industry driven by technology and changing consumer values.
In simple terms, lab-grown diamonds are real diamonds grown in a laboratory over several weeks by simulating the high-temperature, high-pressure environment in which natural diamonds form.
Their chemical composition (pure carbon), crystal structure (cubic crystal system), and physical properties (hardness, refractive index, thermal conductivity) are completely identical to those of natural diamonds. The only difference lies in their formation path and time—natural diamonds require hundreds of millions of years of geological evolution, while lab-grown diamonds can be formed in just 3–4 weeks.
Currently, the mainstream technological routes are divided into two categories: High-Pressure High-Temperature (HPHT) and Chemical Vapor Deposition (CVD). Among them, the HPHT method is most widely used in China, accounting for over 70% of global production capacity, with advantages in low cost, high efficiency, and suitability for mass production. The CVD method is more suitable for producing large-carat, high-clarity diamonds and is an important direction for high-end jewelry and industrial applications.
According to the “2025 Global Lab-Grown Diamond Industry Report” jointly released by Bain & Company and the Antwerp World Diamond Centre (AWDC), the global retail market size for lab-grown diamonds is expected to reach $28 billion in 2025, an increase of nearly 18 times from $1.5 billion in 2018, with a compound annual growth rate (CAGR) of 43.6% from 2019 to 2025.
Looking ahead, the market size is projected to exceed $75 billion by 2030, with penetration expected to rise from about 15% in 2025 to over 28%.
In the author’s view, the rapid rise of lab-grown diamonds is not accidental but the result of the resonance of three factors: technology-driven cost reduction, shifts in consumption, and policy support.
First, technological maturity has driven significant cost reductions. Over the past decade, the production cost per carat for lab-grown diamonds has decreased by over 80%. As of Q3 2025, the average cost of a 1-carat rough diamond via the HPHT method has dropped to $200–250, while the CVD method costs about $300–350.
In contrast, the combined mining and processing cost for natural diamonds generally remains above $1,000 per carat. At the retail end, the price of a 1-carat lab-grown diamond is only 25%–35% of that of a natural diamond of the same grade, with the price-performance advantage continuing to expand.
Second, Generation Z is leading a revolution in consumer attitudes. Young consumers are more focused on personalization, sustainability, and rational consumption, and are less receptive to the traditional narrative that “diamonds = scarcity = love.” According to the “2025 China Lab-Grown Diamond Consumption White Paper” by iMedia Consulting, 68% of people aged 25–35 expressed willingness to purchase lab-grown diamonds, with penetration in the engagement ring scenario jumping from 6% in 2020 to 22% in 2025, becoming the fastest-growing application area.
Third, national strategy and capital are accelerating their deployment. China has included superhard materials (including lab-grown diamonds) in the “14th Five-Year Plan” Strategic Emerging Industries Catalog, with special support policies issued in Henan, Shandong, and other regions. Lab-grown diamonds also have broad applications in the industrial sector.
Data best illustrates the point. In the first three quarters of 2025, financing in China’s lab-grown diamond sector exceeded 4.2 billion yuan, with full-year financing expected to surpass 6 billion yuan. Currently, China accounts for over 80% of global lab-grown diamond rough production, with Henan Province contributing 70% of the national capacity. Cities like Zhengzhou, Xuchang, and Zhecheng have formed a complete industrial chain, earning the title “China’s Lab-Grown Diamond Capital“.
As the industry enters a phase of large-scale expansion, domestic companies are accelerating technological iteration and capacity deployment, initially forming a competitive landscape differentiated by technological routes and application scenarios.
Power Diamond (301071) is a leading domestic company in CVD technology. The company has achieved self-research and mass production of CVD equipment, with the capability to stably produce gem-quality diamonds of 3 carats or more with VS clarity and above. Its products are mainly exported to European and American markets, with clients including several internationally renowned jewelry brands.
However, in the first half of 2025, Power Diamond’s revenue from lab-grown diamonds was 123 million yuan, a year-on-year decrease of 25.87%, with a gross margin of 12.6%, down 78.23% year-on-year. Performance is anticipated to rebound.
Zhongbing Hongjian (000519) primarily follows the HPHT technological route through its subsidiary Zhongnan Diamond. In 2024, the company’s lab-grown diamond production ranked among the top globally. Leveraging its expertise in military materials technology, its HPHT method holds advantages in cost control, with per-carat production costs at the lower end of the industry. Since 2025, the company has continued to expand capacity, with annual production expected to increase further.
In terms of performance, Zhongbing Hongjian’s revenue from superhard materials and related products in the first half of 2025 was 819 million yuan, a year-on-year decrease of 18.73%, with a gross margin of 25.00%, a slight increase of 0.15% year-on-year. The company stated that in the first half of the year, lab-grown diamonds in the consumer sector were impacted by the release of CVD capacity in India, leading to a continuous decline in rough diamond prices.
Huanghe Whirlwind (600172) possesses profound technological expertise, with over 200 patents related to superhard materials accumulated by the end of 2024. In 2024, the company initiated the construction of a CVD large-carat diamond production line, aiming to achieve a dual-technology layout of HPHT and CVD. In the first three quarters of 2025, the company’s lab-grown diamond business maintained rapid growth, with a year-on-year growth rate exceeding 50%.
Of course, despite the promising prospects, the industry still faces multiple challenges. First, overly rapid capacity expansion: China’s lab-grown diamond rough production capacity increased by approximately 35% year-on-year in 2025. If end-demand growth slows, it could trigger a phase of price declines, squeezing corporate profits.
Second, counterattacks from natural diamond giants, such as De Beers and Signet, which are competing for market share through price promotions and marketing campaigns emphasizing the “emotional value of natural diamonds.”
Third, brand recognition needs improvement. For example, some consumers still equate “lab-grown” with “synthetic” or “cheap,” resulting in weak premium pricing power for high-end brands. Currently, the CR5 (concentration of the top five brands) in the domestic market is less than 18%, making branding a key focus for the next stage of competition.
Looking ahead this year, with the expansion of industrial application scenarios such as semiconductor heat dissipation, quantum sensing, and medical cutting tools, and the deepening of consumer scenarios like weddings and fashion jewelry, the lab-grown diamond track is expected to maintain a CAGR of over 25%. For investors, focus should be on leading companies with core technological barriers, vertical integration capabilities, and globalized channels, while being cautious of homogeneous competitors relying solely on capacity expansion.
In summary, lab-grown diamonds have long surpassed the label of “substitute” and are redefining diamonds in the name of technology. On this trillion-dollar track that merges materials science, consumer psychology, and capital logic, the true winners will be the long-term players who can both “produce well” and “sell well.”