【China】Unveiling the Current State of China’s Lab-Grown Diamonds: Price Wars, Stereotyped Designs, and Blind Pursuit of Certifications

“A diamond is forever.” This advertising slogan from De Beers, the global monopolist of natural diamonds, has made diamonds a symbol of love and a must-have luxury for many when getting married.
However, the rise of lab-grown diamonds is breaking this myth. Data shows that China has become the world’s largest producer of lab-grown diamonds. Compared to the millions of years required for natural diamond formation, lab-grown diamonds can be produced in just 7 to 10 days at a lower cost, with prices only one-third or even less than one-fifth of natural diamonds.
One reason for the high cost of natural diamonds is their rarity. Natural diamonds form 100-300 kilometers underground, where carbon elements are compressed under high temperature and pressure over millions of years to form diamonds, which are then brought to the surface through volcanic activity. Lab-grown diamonds are artificially synthesized in laboratories. Chinese companies commonly use the High-Pressure High-Temperature (HPHT) method, which simulates the growth conditions of natural diamonds using a cubic press to squeeze carbon atoms into diamonds.
Compared to natural diamonds that take millions or even hundreds of millions of years to form, the synthesis cycle and cost of lab-grown diamonds are significantly reduced, requiring only 7-10 days under the HPHT method.
It is important to note that lab-grown diamonds are real diamonds, with physical and chemical properties identical to natural diamonds. Chemically, both are composed of carbon atoms. Physically, core indicators such as hardness, refractive index, and dispersion of lab-grown diamonds are the same as natural diamonds, fundamentally different from common diamond substitutes like cubic zirconia (main component: zirconium silicate) and moissanite (main component: silicon carbide).
According to Bain & Company data, the global production of gem-quality lab-grown diamond rough was about 7 million carats in 2020. Geographically, China had the largest output, approximately 3 million carats, accounting for about 40%.
In China, lab-grown diamond production capacity is mainly concentrated in Henan province. Four Henan-based companies—Zhongbing Hongjian, Huanghe Whirlwind, Power Diamond, and Yuzhou Jinjing—supply over 80% of China’s lab-grown diamond rough.
China’s status as a major producer of lab-grown diamonds has historical roots. In the 1960s, to break dependence on imported synthetic diamonds, the Zhengzhou Research Institute for Abrasives & Grinding developed China’s first domestic two-anvil press and successfully manufactured China’s first synthetic diamond, establishing Henan’s research status in the synthetic diamond industry. Driven by this institute, a large number of synthetic diamond manufacturers emerged in Henan, with several going public.
Initially, the synthetic diamonds produced by these companies were mainly used in industrial applications. Later, based on related technologies and equipment, they began entering the consumer-grade lab-grown diamond market.

Taking Power Diamond as an example, at its founding in 2010, it mainly produced synthetic diamond monocrystals. In 2016, it began entering the lab-grown diamond market. Starting in 2021, Power Diamond’s lab-grown diamond business developed rapidly, achieving revenue of 197 million yuan, a year-on-year increase of 428.11%, accounting for 39.57% of total revenue and becoming the company’s largest business. In the first half of 2022, the revenue share of lab-grown diamonds at Power Diamond further increased to 49.60%.
Notably, the gross profit margin for producing lab-grown diamonds is astonishingly high. Data shows that in the first half of 2022, the gross profit margins for Power Diamond’s three main businesses—lab-grown diamonds, diamond monocrystals, and diamond micropowder—were 83.44%, 57.94%, and 52.40% respectively, with lab-grown diamonds significantly higher than the others.

Due to the shorter synthesis cycle, lab-grown diamonds have a cost advantage over natural diamonds.
According to Bain & Company data, in 2021, the retail price of lab-grown diamonds as a percentage of natural diamond prices dropped from 35% in 2020 to 30%, and the wholesale price percentage dropped from 20% to 14%, with room for further decline in the future.
Despite cost and production advantages, lab-grown diamonds have not yet become mainstream in the domestic jewelry market.
Data shows that the United States is currently the largest consumer market for lab-grown diamonds globally, accounting for about 80% of consumption in 2019, while China’s share was only 10%. A survey indicates that among reasons for US consumers purchasing lab-grown diamonds, price/performance ratio was the highest at 62%, followed by ethical factors (20%) and environmental factors (18%).
In recent years, due to complex economic conditions, US consumers have become more willing to use lab-grown diamonds as affordable alternatives to natural diamonds. According to recent data from Tenoris, the penetration rate of lab-grown diamonds in the US engagement ring market has increased from 6% in 2021 to 10%.
Globally, well-known jewelry brands have also embraced lab-grown diamonds. Swarovski launched its lab-grown diamond brand Diama in 2017. Diamond leader De Beers launched its lab-grown diamond jewelry brand Lightbox in 2018. Jewelry brand Pandora announced in 2021 that it would fully adopt lab-grown diamonds for its new product series.
In the domestic market, traditional jewelry brands have been more cautious and later to enter the lab-grown diamond space. In 2021, Yuyuan Tourist Mart, the parent company of Laomiao Gold, launched the lab-grown diamond brand “LUSANT.” In 2022, MCLON Jewelry established the lab-grown diamond brand “OWNSHINE.”

Judging from the prices of these lab-grown diamond products, they are indeed much cheaper than natural diamond products. On e-commerce platforms, a 1-carat LUSANT lab-grown diamond ring (D color, SI2 clarity) sells for around 10,000 yuan, while a 1-carat natural diamond ring from DR (J color, SI1 clarity) sells for as high as 75,000 yuan.
Additionally, some emerging domestic lab-grown diamond brands have been born in recent years, such as LightMark. However, overall, these domestic brands were established relatively late, and their brand influence is still very limited, especially as sales channels are primarily online, with very few offline stores to reach consumers.

In reality, the low penetration rate of lab-grown diamonds in China is due to both the limited involvement of traditional jewelry brands and consumer perceptions and awareness.
For traditional jewelry brands, the scarcity of natural diamonds is the main factor supporting their high product prices. If natural diamond products and lab-grown diamond products were sold in the same store, the marketing appeal of “A diamond is forever” would lose its effect.
Taking DR Diamond Rings as an example, it has always claimed that a man can only customize one ring in his lifetime, for one person only. If natural diamonds were largely replaced by lab-grown diamonds, losing their scarcity, the concept of “only one in a lifetime” would become a joke.
For consumers, when mentioning lab-grown or synthetic diamonds, many first question whether they are real diamonds, which is the biggest obstacle to consumer adoption of lab-grown diamonds.

He believes that as more domestic jewelry brands begin to enter the lab-grown diamond market, increased market acceptance is only a matter of time. In his view, the main bottlenecks for the development of lab-grown diamonds in China are: first, the healthy integration of the supply chain, rather than engaging in price wars that lead to a vicious cycle; second, establishing a certification system for lab-grown diamonds and not blindly trusting foreign certificates; third, in product design, breaking free from the stereotypical rare attribute of natural diamonds and presenting the beauty of diamonds through excellent jewelry design.
Due to the limited popularity of lab-grown diamonds, domestic producers are also taking action. In August of this year, Power Diamond jointly invested with Chow Tai Fook Jewelry and others to establish a lab-grown diamond jewelry brand to promote the domestic retail market. Earlier, Yuzhou Jinjing launched its own jewelry brand Mutika, although sales from its JD.com flagship store are clearly not ideal.

The development of China’s lab-grown diamond industry still has a long way to go.