Editor’s Note
This article examines the shifting dynamics in the global diamond market, where a Chinese lab-grown diamond producer has seen profits triple amid rising consumer preference for affordable artificial stones. The trend has forced industry giant De Beers to suspend production at South Africa’s Venetia mine, signaling a significant evolution in the diamond industry.
A Chinese lab-grown diamond producer saw its profits triple over the first half of the year, as consumers around the world increasingly abandon natural diamonds in favor of cheaper artificial stones.
The pivot had led De Beers to suspend production at South Africa’s largest diamond mine, Venetia, for two years as part of a cost-cutting drive, with the company warning that it was confronting “protracted challenging conditions as the diamond industry evolves”.
The rise of man-made gems has battered demand for natural stones in recent years. The global lab-grown diamond market is worth about 127.2 billion yuan (US$18.8 billion), and the greatest demand comes from the United States, according to a report released at an industry forum in central China’s Henan province in December.
China dominates the growing market, with the country expected to account for nearly two-thirds of global output of lab-grown diamonds by 2030, according to the report. Most of China’s production takes place in Henan, state media reported last year.
Power Diamond, a major producer in Henan, is one of the biggest beneficiaries of the pivot to lab-grown stones. The company projects its net profits attributable to shareholders to reach between 80 million yuan and 93 million yuan in the first half of 2026, nearly triple the level recorded during the same period last year, it said in a filing with the Shenzhen Stock Exchange on July 10.
The firm attributed the surge to breakthroughs in its diamond-making process and strong growth in exports. Its revenues are forecast to nearly double, year on year, to 450 million yuan, the filing said.