Editor’s Note
The global market for lab-grown diamonds is projected to more than double by 2032, fueled by demand for sustainable luxury and new high-tech applications. This analysis from Astute Analytica highlights the sector’s rapid evolution beyond traditional jewelry.
According to recent data from Astute Analytica, the global lab-grown diamond market is expected to reach the size of US$ 56.94 billion by 2032 from US$ 22.66 billion in 2023, registering a CAGR of 10.78% over the forecast period 2024-2032. The market is experiencing rapid expansion, driven by a shift toward sustainable luxury, with high growth in the fashion and jewelry sectors, as well as emerging high-tech applications in semiconductors and quantum computing.
The increasing demand for lab-grown diamonds is fueled by several compelling factors, with affordability standing out as one of the most influential drivers. Compared to natural diamonds, lab-grown diamonds are generally priced 30-40% lower, making them a more accessible option for budget-conscious consumers.
Additionally, pricing trends continue to support demand growth. For instance, the price of a 1-carat lab-grown diamond declined to $1,450 in the first quarter of 2023, making these diamonds even more attractive to a broader audience.
Eco-friendliness has become a crucial factor propelling the rapid expansion of the lab-grown diamond market. Traditional diamond mining is widely recognized for its substantial environmental impact, involving extensive land disruption, resource depletion, and energy-intensive extraction processes.
This sustainable approach minimizes land disturbance and water use and significantly lowers greenhouse gas emissions compared to traditional mining operations. This increasing consumer preference for environmentally responsible products is a major contributor to the market’s accelerated growth.
Chemical Vapor Deposition (CVD) has emerged as the standout technology within the global lab-grown diamond market, exhibiting the highest growth rate among production methods. In 2023, the CVD segment captured a commanding 57.4% share of the market.
The CVD process involves introducing hydrocarbon gas and hydrogen into a vacuum chamber, where these gases are ionized to create a plasma. Carbon atoms from the plasma then deposit onto a substrate, gradually forming diamond crystals layer by layer.
The process’s scalability contributes to cost efficiency, enabling producers to meet growing demand. Additionally, CVD technology allows for customization of diamond properties, such as size and color, further expanding its versatility.
The fashion segment within the global lab-grown diamond market continues to experience robust growth, with projections indicating a significant rise to an estimated value of US$ 32.73 billion by 2030. This impressive surge is largely propelled by the increasing popularity of lab-grown diamonds among younger generations, particularly millennials and Gen Z consumers.