Editor’s Note
The diamond market is undergoing a significant shift, with lab-grown alternatives driving down prices and reshaping consumer preferences. This article examines the steep price declines in both natural and synthetic diamonds, highlighting the factors behind the changing landscape.
The prices of natural diamonds have fallen by 26 percent over the past two years. In contrast, the prices for lab-grown diamonds have dropped by as much as 74 percent. The reason for this decline is the growing market for lab-grown diamonds, which are not only more cost-effective but also faster to produce. Particularly younger customers value these synthetic stones due to their ethical origin. According to the British newspaper “The Guardian,” lab-grown diamonds now account for 45 percent of the bridal jewelry market.
In response to the falling prices, DeBeers has even reduced its production by 20 percent. The company is holding onto a large quantity of diamonds worth several billion dollars. Rumors about a potential sale by the owner Anglo American are circulating, while demand in China is declining and the global economy is weakening.
Lab-grown diamonds are chemically and physically identical to natural diamonds, yet significantly more affordable. Their production takes place in controlled environments, which facilitates traceability – an aspect that is gaining increasing importance among environmentally conscious buyers. The negative reputation of “blood diamonds,” often associated with human rights violations, reinforces the trend towards synthetic alternatives.
According to Tenoris, a company that analyzes diamond prices in over 2,000 stores in the USA, the average price for a one-carat natural diamond fell from €6,250 in May 2022 to €4,580 in December 2024. During the same period, the price for a lab-grown diamond dropped from €3,120 to just €820. Despite this price collapse, many customers remain loyal to natural diamonds. Jewelers like Robert Willis report that customers are still willing to spend between €6,000 and €9,500 on an engagement ring. Furthermore, the industry emphasizes that the illusion of size in lab-grown diamonds is not comparable to the quality of natural stones.
Smart jewelers are focusing on the stories and emotions associated with natural diamonds. DeBeers is trying to boost enthusiasm for natural diamonds through new marketing campaigns. And during the Emmy Awards, fewer celebrities were seen wearing lab-grown diamonds, which may indicate a trend reversal.
