Laboratory Grown Diamond Market By Manufacturing Method (High-Pressure High-Temperature [HPHT], Chemical Vapor Deposition [CVD]); By Application (Jewelry, Industrial, Electronics); By Product Type (Rough Lab-Grown Diamonds, Polished Lab-Grown Diamonds); By Distribution Channel (Online Retail, Offline Retail [Jewelry Stores, Specialty Stores]); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The laboratory-grown diamond market was USD 17.1 billion in 2023 and is expected to reach USD 37.3 billion by 2030, at a CAGR of 12.2% during the forecast period of 2024-2030. This growth is due to the ever-growing demand for more sustainable and ethically sourced products, new technology increase in the possibility of Diamond Synthesis, and relatively cheaper than natural diamonds.

 

Cultured diamonds are artificially grown diamonds produced in a laboratory by various technological procedures to emulate the natural process of formation of a diamond. Lab-created diamonds are more sustainable and environmentally friendly than mined diamonds and are cultivated through ethical practices. Due to the similarity in physical, chemical, and optical properties, they are increasingly used in jewelry, industries, and the electronic markets as a substitute for natural diamonds.

 

Market Drivers

Rising Demand for Sustainable and Ethical Jewelry: Due to customer awareness of the social and ecological implications of mining natural diamonds, there has been a higher demand for laboratory-grown diamonds, especially among millennials and Gen X. A Global Millennial and Gen Z Consumer Survey conducted in 2023 revealed that 70% of the buyers will choose sustainable jewelry and lab-grown diamonds. Example: A jewelry store based in the United States of America explained that demand for lab-grown diamond engagement rings rose by 40% in 2023.

 

Technological Progress in Diamond Synthesis: Chemical vapor deposition (CVD) and high-pressure high temperature (HPHT) methods have created higher-value lab-grown diamonds that are larger, better cut, and cheaper than ever. For example, in 2022, a Chinese manufacturer presented ultra-modern CVD reactors capable of yielding diamonds up to 15 carats in 20% less time than before.

 

Affordability Compared to Natural Diamonds: Manufactured diamonds are easily 30%- 50% cheaper than those that are mined and are expected to be popular across the markets without compromising on their quality or appearance. Data from 2023 show that the cost of the 1-carat laboratory-grown diamond was USD 2,800, while the natural diamond of the same category cost USD 5,500.

 

Industrial Applications Driving Demand: Apart from ornaments, lab-created diamonds are employed for cutting, grinding, and polishing purposes and are considered ideal in electronics due to their heat conductivity and hardness. Example: The electronics industry was found to be the largest end-user of lab-grown diamonds in 2023, and it captured a 20% market share, particularly in semiconductor use.

 

Market Opportunities

Expansion in Emerging Markets: Laboratory-grown diamond manufacturers may look forward to the increasing middle-class population in emergent economies like India and China as they are more price-sensitive but would love to accept imitation diamonds that are nearly comparable to natural diamonds. Example: An Indian jeweler launched a lab-grown diamond jewelry collection in 2023, which recorded a 25% increase in yearly sales in urban India.

 

Integration of Lab-Grown Diamonds in Luxury Brands: The large traditional premium brands can incorporate lab-grown diamonds to appeal to environmentally conscious and ethical consumers, retaining their prestige. Example: A luxury brand from Switzerland also introduced lab-grown diamonds in its premium watches in 2022 and stepped into the green luxury trend.

 

The Innovation of Colored Lab-Grown Diamonds: The appearance of colored lab-grown diamonds, such as pink, blue, and yellow, contributes to their potential growth in both the ornamental and industrial industries. For example, a US-based producer unveiled pink lab-grown diamonds in 2023, especially for bridal jewelry.

 

Market Restraints

Consumer Perception and Awareness: However, at present, the idea of lab-grown diamonds still causes some restrictions among consumers, as many of them consider them to be unnatural or fakes.

 

Competition from Natural Diamonds: Healthy campaigns by natural diamond producers, especially on the fact that mined diamonds are different, rare, and special, threaten lab-grown diamonds.

 

Regulatory and Certification Issues: Lab-grown diamonds may be misperceived due to the absence of unified certifications and coherent labeling, which can affect consumer trust.

 

Market Segmentation

By Manufacturing Method:

• High-Pressure High-Temperature (HPHT)

• Chemical Vapor Deposition (CVD)

 

By Application:

• Jewelry

• Industrial

• Electronics

 

By Product Type:

• Rough Lab-Grown Diamonds

• Polished Lab-Grown Diamonds

 

By Distribution Channel:

• Online Retail

• Offline Retail (Jewelry Stores, Specialty Stores)

 

Segment Analysis of Laboratory-Grown Diamond Market

By Manufacturing Method:

Leading Segment: High-Pressure High-Temperature (HPHT)

HPHT is the leading manufacturing method in the laboratory-grown diamond market. This method mimics the natural geological process by applying high pressure & temperature to carbon, creating diamonds that are chemically & structurally identical to mined diamonds. HPHT is widely used in producing both gem-quality & industrial diamonds due to its ability to produce larger diamonds more quickly. For example, HPHT is commonly used to produce diamonds for industrial cutting & grinding tools. This method is favored for its relatively lower production costs compared to other methods, contributing to its dominance in the market.

Fastest-Growing Segment: Chemical Vapor Deposition (CVD)

CVD is the fastest-growing manufacturing method for laboratory-grown diamonds. This method involves the deposition of carbon atoms from a gas phase to form diamond crystals. CVD technology is gaining traction for its ability to produce high-quality diamonds with fewer impurities. It is particularly favored for creating gem-quality diamonds used in the jewelry industry & the technology's scalability is making it increasingly popular. The demand for CVD diamonds is growing due to advancements in the technology, which have made it possible to produce larger, high-quality diamonds at competitive prices. Major players in the jewelry market, like Brilliant Earth, are using CVD diamonds for a range of engagement rings and fine jewelry.

 

By Application:

Leading Segment: Jewelry

The jewelry segment is the largest and most lucrative application of laboratory-grown diamonds. As consumers increasingly seek ethical, sustainable, and cost-effective alternatives to mined diamonds, lab-grown diamonds have gained popularity, especially in engagement rings, necklaces, and earrings. The ability to produce diamonds of similar quality to mined diamonds, without the associated ethical concerns, makes it the dominant application. Companies like Diamond Foundry & Pure Grown Diamonds are leveraging this growing demand to offer high-quality, certified lab-grown diamonds in the jewelry market.

Fastest-Growing Segment: Industrial

The industrial application of laboratory-grown diamonds is the fastest-growing segment. Diamonds are widely used in industrial applications such as cutting, grinding & drilling due to their unmatched hardness. With advancements in manufacturing methods like HPHT & CVD, lab-grown diamonds are increasingly used for these applications, offering a cost-effective & sustainable alternative to mined diamonds. The growing demand for precision tools and machinery in industries such as automotive, aerospace & manufacturing is driving the rise in industrial applications of lab-grown diamonds.

 

By Product Type:

Leading Segment: Rough Lab-Grown Diamonds

Rough lab-grown diamonds dominate the market, primarily because they are the initial product form before polishing and cutting for use in jewelry or industrial applications. The demand for rough diamonds is particularly strong in the industrial sector, where they are used for manufacturing cutting tools and abrasives. In the jewelry sector, rough diamonds are sold to diamond cutters and jewelers who then process them into polished diamonds. This segment holds the largest share due to the scale of rough diamond production and the versatility of rough diamonds in multiple industries.

Fastest-Growing Segment: Polished Lab-Grown Diamonds

Polished lab-grown diamonds are the fastest-growing product type, driven by increasing demand in the jewelry sector. As consumer preference for ethically sourced diamonds rises, polished lab-grown diamonds are becoming a popular choice in engagement rings, wedding bands & other fine jewelry pieces. Advances in technology have allowed for polished lab-grown diamonds to be produced with fewer inclusions & higher clarity, which has further increased their appeal. Brands such as Lightbox Jewelry & Ada Diamonds are capitalizing on this trend by offering high-quality, polished lab-grown diamonds at lower price points than mined diamonds.

 

By Distribution Channel:

Leading Segment: Offline Retail (Jewelry Stores, Specialty Stores)

Offline retail continues to be the leading distribution channel for laboratory-grown diamonds, particularly through jewelry stores & specialty retailers. Consumers prefer to physically examine diamonds in stores, which allows them to assess the quality, cut & clarity before making a purchase. Traditional retail stores also offer an opportunity for personalized service, which is important when purchasing high-value items like engagement rings. As the market for lab-grown diamonds grows, brick-and-mortar stores are becoming more important in educating consumers and promoting ethical alternatives to mined diamonds.

Fastest-Growing Segment: Online Retail

Online retail is the fastest-growing distribution channel for lab-grown diamonds, driven by the convenience and accessibility it offers to consumers. E-commerce platforms like James Allen, Brilliant Earth & Blue Nile have made it easier for customers to browse and purchase lab-grown diamonds from the comfort of their homes. The ability to view high-resolution images, certifications & customer reviews online has accelerated the shift toward online retail. Moreover, the lower operational costs of online stores allow for more competitive pricing, which is a key factor in the growing popularity of this channel.

 

By Region:

Leading Region: North America

North America is the leading region for the laboratory-grown diamond market, driven by strong consumer demand, particularly in the U.S. The region’s preference for ethical & sustainable products has led to an increased adoption of lab-grown diamonds, especially in the jewelry sector. Key players in the market, including Diamond Foundry & Pure Grown Diamonds, are based in North America, further bolstering the region's dominance. The popularity of lab-grown diamonds is expected to continue to rise in the region, as more consumers seek alternatives to mined diamonds that align with their ethical & environmental values.

Fastest-Growing Region: Asia-Pacific

Asia-Pacific is the fastest-growing region for the laboratory-grown diamond market. The growing demand for diamonds in countries like India and China, where diamonds are culturally significant, is driving the growth of the market. In addition to the traditional demand for diamonds in jewelry, the industrial sector in Asia-Pacific is also experiencing a rise in the use of lab-grown diamonds for cutting, grinding & drilling applications. The increasing acceptance of lab-grown diamonds as a viable alternative to mined diamonds, along with improving economic conditions, is expected to fuel rapid growth in this region.

 

Key Players

• De Beers (Lightbox Jewelry)

• Pandora

• Brilliant Earth

• Diamond Foundry

• WD Lab Grown Diamonds

• ALTR Created Diamonds

• MiaDonna

• Pure Grown Diamonds

• New Diamond Technology

• Huanghe Whirlwind

 

Laboratory-Grown Diamond Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 17.1 billion
Revenue Forecast in 2030	USD 37.3 billion
Overall Growth Rate	CAGR of 12.2%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Manufacturing Method, By Application, By Product Type, By Distribution Channel, By Region
By Manufacturing Method	High-Pressure High-Temperature (HPHT), Chemical Vapor Deposition (CVD)
By Application	Jewelry, Industrial, Electronics
By Product Type	Rough Lab-Grown Diamonds, Polished Lab-Grown Diamonds
By Distribution Channel	Online Retail, Offline Retail (Jewelry Stores, Specialty Stores)
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	US, Canada, Germany, UK, France, China, Japan, India, etc.
Key Market Drivers	Rising demand for sustainable and ethical jewelry, technological progress in diamond synthesis, affordability compared to natural diamonds, and industrial applications driving demand.
Major Players	De Beers Group, Swarovski AG, Henan Huanghe Whirlwind Co., Ltd., Diamond Foundry Inc., New Diamond Technology LLC.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

 

Future Outlook

The market for lab-grown diamonds is expected to experience consistent growth in the foreseeable future due to rising concerns for the environment and ethics, innovation and development in the technology of creating diamonds, and the increasing use of diamonds in jewelry and industrial purposes. New markets of Asia-Pacific and Latin America will be the key driver, supported by increasing disposable incomes and shifting consumer trends.

 

Companies improving production innovation, cost, and sustainability aspects are expected to have some competitive advantage. It is expected that by 2030, lab-grown diamonds will hold more than 30% of the jewelry market and steadily grow and diversify their applications into novel and sophisticated technologies and industries.