【Dubai, UAE】UAE: Lab-grown diamond prices fall; see explosive growth among Gen-Zs

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Editor’s Note

This article highlights the surging demand for lab-grown diamonds, driven by Gen-Z consumers and increasing affordability. As the fastest-growing segment in the jewellery sector, LGDs are reshaping market dynamics in the UAE and globally.

Demand Driven by Gen-Z and Affordability

Demand for lab-grown diamonds (LGDs) is growing in the UAE, the region, and globally, driven by their increasing use in jewellery and lifestyle products.

Industry executives at a DMCCC Lab-Grown Diamond Symposium 2025 said on Tuesday that LGD is the fastest-growing segment in the jewellery sector, driven by higher demand from Gen-Z as prices drop.

“We see a lot of demand, primarily driven by consumer awareness that goes up for the material. Gen-Z accounts for 60 per cent of luxury consumers, and they have been especially embracing lab-grown diamonds very quickly, driven by social media awareness,”

Peter Widmann, Senior Vice President and General Manager of Swarovski Created Diamonds, Swarovski, said lab-grown diamonds — or man-made diamonds — are one of the biggest innovations in jewellery in decades.

Widmann added that the LGD segment is the fastest-growing in the jewellery sector, expanding at a double-digit rate year-over-year.

Market Value and Price Trends

It is estimated that the global lab-grown diamond market is valued between $25 and $35 billion and is expected to reach between $60 and $100 billion by the 2030s, driven by expansion in the jewellery and lifestyle markets, continued industrial demand, and the rapid emergence of high-technology applications.

“There’s are narratives that are interesting to discuss, but at the end of the day, consumers are buying this because the price point is very attractive, by far,”

Paul Zimnisky, an independent analyst, said one of the key drivers has been the lower price point of man-made diamonds.

Prices of diamonds have dropped substantially as lab-grown diamonds have put a big hole in the market, falling from around $6,800 in 2022 to around $5,000 at the end of last year.

Expansion into New Markets and Coexistence

Neil Ventura, Special Advisor for precious stones, DMCC, said lab-grown diamonds have started to unfold into fashion and lifestyle settings as well.

“We have seen a strong growth of LGD in jewellery. All the signs point to continued growth there,”

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said lab-grown diamonds already account for nearly half of engagement ring centre stones in the US, with adoption accelerating in the Middle East, Europe, India, and China.

“Affordability and design flexibility are reshaping consumer demand, allowing buyers to opt for larger stones and more innovative designs, while giving jewellers scope to experiment with shapes and colours impractical with natural supply. This is not about replacement. It is about wider choice, more accessible price points, and new design possibilities,”

He added that DMCC has seen more than one billion carats traded in the past five years.

More than 30 lab-grown diamond companies are already active in the DMCC ecosystem, and annual LGD trade through Dubai exceeded $1 billion last year.

“Our position is clear: natural and lab-grown diamonds are not rivals. They are distinct categories that can co-exist, and if properly structured, they can expand choice, drive innovation, and grow the overall market,”
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⏰ Published on: September 30, 2025