Lab-Grown Diamonds: A Market Revolution or a Passing Trend?

February 2025

After rapid growth and sales nearing USD9 billion in 2024, the lab-grown diamond jewellery market has slowed. Future challenges include competition, falling prices, sustainability concerns, stricter regulations, loss of perceived value and market saturation. However, opportunities exist through geographic expansion, product diversification and omnichannel strategies. Effective branding and positioning will be crucial for jewellery brands to overcoming these challenges and drive future growth.

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Key Findings

After explosive growth, sales of lab-grown diamond (LGD) jewellery began to slow down

After explosive growth and sales nearing USD9 billion in 2024, the lab-grown diamond jewellery market has begun to slow down. While LGDs initially attracted both new consumers - who might not have otherwise purchased diamond jewellery - and traditional buyers seeking greater value, growth is now being tempered by increased competition, falling prices, growing scrutiny over sustainability and ethical claims, and stricter regulations.

Opportunities exist beyond the US and the bridal market

The US is by far the largest market for lab-grown diamonds, accounting for 70% of global sales of lab-grown diamond jewellery in 2024. Beyond geographic expansion, there are several key growth opportunities. Affordability continues to be a major selling point, attracting budget-conscious consumers. Product diversification into categories such as bracelets and earrings allows brands to move beyond the highly competitive bridal segment. Effective positioning and branding will be critical for differentiation, while an omnichannel presence, blending online and offline retail, can expand reach and enhance customer engagement.

Regulation, positioning and dropping prices among main threats to future growth

Lab-grown diamonds face several challenges that could impact future growth, including loss of perceived value as prices decline, stricter regulations on labelling, marketing and sustainability, and increasing market saturation. Additionally, macroeconomic conditions may affect consumer spending, while shrinking profit margins will force brands to refine their strategies to stay competitive.

Why read this report?
Key findings
Lab-grown diamonds, the bright spot in a modest growing industry
Overall luxury slowdown and cost-of-living crisis cause jewellery growth deceleration
The surge of lab-grown diamonds
Preference for diamonds differs significantly across regions and drops post-pandemic
The diamond industry navigates uncharted waters as prices continue to decline
Italy, the US and Australia see the largest penetration of lab-grown diamonds
A fragmented market: Unbranded products, small players and well-known brands
Retail e-commerce expands the reach of lab-grown diamond jewellery
Demographics, fine jewellery demand and LGDs’ positioning define potential markets
LGD jewellery players must adapt their strategies as growth begins to moderate
Five trends to favour growth of lab-grown diamonds in the years to come
US accounts for over two thirds of LGD sales in 2024, but opportunities exist beyond
Australia: LGDs have gained share from natural diamonds but growth appeared to peak
Canada: Growth expected as consumers value affordability and sustainability of LGDs
Germany: LGDs’ increasing popularity set to change bridal jewellery trends
India: Stable growth from consumer demand, brand expansion and government support
Italy: Diamond industry raises concerns amidst growing popularity of LGDs
US: Fine jewellery players maintain opposite perspective on LGDs
US: LGDs thrive amidst economic uncertainty but slow down as prices continue to fall
US: Customer interest in LGD jewellery becomes more specific and broader
US: Diverging approaches to LGDs between luxury and non-luxury players
US: Review of product portfolios among key LGD players across four categories
US: Opportunities for expanding the LGD jewellery market - a product perspective
US: Size vs price dilemma - competition is stronger for smaller diamonds
Expansion in the US: Capitalising on new segments and customer priorities
What could limit LGD growth in the coming years?
Regulations and consumers’ preferences challenge LGD growth in Asia and Europe
China: LGDs must go beyond traditional diamond values to resonate with consumers
Japan: LGDs remain niche and unlikely to see significant growth in the near future
France: Natural diamond brands’ response slows down LGD growth
UK: LGD prospects fluctuate amidst regulations and market fragmentation
Lab-grown diamonds: A market revolution or a passing trend?
How different are lab-grown and natural diamonds consumers?
Recommendations for growth
Evolution of LGD jewellery
Questions we are asking
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