New Delhi, Aug. 13, 2024 (GLOBE NEWSWIRE) -- The global lab grown diamond market was valued at US$ 22.66 billion in 2023 and is expected to reach US$ 56.94 billion by 2032, growing at a CAGR of 10.78% during the forecast period 2024-2032.
The lab grown diamond market has seen significant growth and transformation in recent years, driven by technological advancements and changing consumer preferences. The U.S. remains one of the major consumers, contributing to more than half of the global diamond jewelry demand. Lab-grown diamonds offer several advantages over natural diamonds, including affordability, environmental sustainability, and ethical production. They can be up to 90% cheaper than natural diamonds, and their production significantly reduces the carbon footprint and water usage associated with mining. The market for lab-grown diamonds has expanded rapidly, with sales increasing from under $1 billion in 2016 to nearly $12 billion in 2022. In 2023, lab-grown diamonds made up a significant portion of the global diamond jewelry market, a notable increase from previous years. The annual production of lab-grown diamonds in 2023 reached 8 million carats. India's lab-grown diamond exports surged to $1.5 billion in 2023, while China's production capacity for lab-grown diamonds increased to 6 million carats annually.
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Over 200 companies worldwide are involved in the production across the lab grown diamond market, and the number of retailers offering lab-grown diamonds increased substantially in 2023. The average price of a 1-carat lab-grown diamond dropped to $2,300 in 2024. Jewelry brands like Pandora have ceased using mined diamonds, opting exclusively for lab-grown diamonds. The environmental impact of lab-grown diamonds is significantly lower, with 100 liters of water per carat compared to 480 liters for mined diamonds. The energy consumption for lab-grown diamonds is around 250 kWh per carat, compared to 538.5 kWh for mined diamonds.
Consumer Trends and Future Outlook
Consumer preferences are shifting towards lab-grown diamonds due to their affordability and ethical considerations. For instance, half of the engagement ring stones sold this year are expected to be lab-grown, a dramatic rise from just a few years ago. The market is also diversifying, with lab-grown diamonds being used in various applications, including fashion jewelry and industrial uses such as computer processing hardware and energy storage devices. Despite a recent downward trend in prices, the lab grown diamond market is anticipated to stabilize, offering more accessible options for consumers and opportunities for designers. The U.S. market alone saw sales of lab-grown diamonds worth $5.2 billion in 2023.
Synthetic diamond patents filed in 2023 increased globally, while online sales of lab-grown diamonds grew significantly. Lab-grown diamond engagement rings accounted for a major portion of all engagement ring sales in the U.S. in 2023. The industrial use of lab-grown diamonds reached $2 billion in 2023, and marketing budgets for lab-grown diamond companies increased considerably in 2023.
Key Findings in Lab Grown Diamond Market
| Market Forecast (2032) | US$ 56.94 billion |
| CAGR | 10.78% |
| Largest Region (2023) | Asia Pacific (44.1%) |
| By Manufacturing Method | Chemical Vapor Deposition (57.4%) |
| By Size | 0.25 to 2.5 Carats (68.0%) |
| By Application | Fashion (58.0%) |
| By Nature | Color (74.7%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Minimal to None Resale Value Deter Consumers from Developing Nations from Buying Them, Says Astute Analytica
Lab-grown diamonds generally do not hold their resale value as well as natural diamonds. This is primarily due to their abundant supply and the relatively lower demand in the secondary lab grown diamond market. While natural diamonds typically retain about 25% to 50% of their original value upon resale, lab-grown diamonds often depreciate significantly more, sometimes retaining as little as 10% to 30% of their initial purchase price. Despite their identical physical and chemical properties to natural diamonds, the resale market for lab-grown diamonds is not as robust, leading to lower resale values. However, the ethical and environmental benefits of lab-grown diamonds continue to appeal to modern consumers, offsetting concerns about resale value for many buyers.
CVD is the Most Popular and Dominant Method in Market, Accounts for over 57.4% Market Share
The Chemical Vapor Deposition (CVD) method has emerged as the most popular technique in the lab grown diamond market for producing them, primarily due to its ability to create high-quality diamonds with fewer impurities and better control over the growth process. Unlike the High-Pressure High-Temperature (HPHT) method, which mimics the natural formation of diamonds under extreme conditions, CVD operates at moderate temperatures and pressures, making it more cost-effective and energy-efficient. This method involves introducing a mixture of gases, typically methane and hydrogen, into a vacuum chamber where they decompose and deposit carbon atoms onto a substrate, forming a diamond film. The CVD process allows for the production of Type IIA diamonds, which are extremely rare in nature and are free from nitrogen and boron impurities, resulting in higher purity and better optical properties. Additionally, CVD diamonds can be grown in a relatively short time frame of two to four weeks, making the process more efficient and scalable.
Several key factors drive the dominance of the CVD method in the lab grown diamond market among producers. Wherein, the cost-effectiveness of the CVD process is a significant advantage. The equipment required for CVD is less expensive and operates at lower energy levels compared to HPHT, reducing overall production costs. Secondly, the ability to produce colorless and near-colorless diamonds consistently has made CVD diamonds more appealing in the jewelry market. The flexibility of the CVD process also allows for the growth of diamonds on various substrates, which has applications beyond jewelry, including in optics, computer sciences, and tool production. Furthermore, the CVD method's capability to control the properties of the diamonds produced, such as size and quality, ensures a consistent and high-quality output. As of 2023, CVD diamonds are increasingly common, with over 70% of lab-grown diamonds in the market being produced using this method. The average size of CVD diamonds has also increased, with many producers now able to create diamonds up to 3.2 carats. The market for lab-grown diamonds continues to grow, with CVD diamonds becoming increasingly common due to their superior quality and cost advantages.
0.25 to 2.5 Carat Lab-Grown Diamonds Takes the Center Stage, Poised to Generate Over US$ 40.43 billion in Revenue By 2032
Consumers in the global lab grown diamond market are increasingly drawn to lab-grown diamonds in the 0.25 to 2.5 carat range due to a combination of affordability, ethical considerations, and advancements in technology. As of 2023, the average cost of a lab-grown diamond is significantly lower than its mined counterpart, with prices often being 30% to 40% less. Additionally, the growing awareness of the environmental and ethical issues associated with diamond mining has driven consumers towards more sustainable options. Lab-grown diamonds, being conflict-free and having a smaller carbon footprint, appeal to the socially conscious consumer. For instance, the production of lab-grown diamonds uses approximately 85% less water and 50% less energy compared to mined diamonds. Another factor is quality and availability; lab-grown diamonds in this carat range are readily available and often exhibit fewer inclusions. According to a 2023 report, nearly 70% of lab-grown diamonds fall within the VS (Very Slightly Included) to IF (Internally Flawless) clarity range, which enhances their allure.
In terms of popularity, diamonds within the 0.25 to 2.5 carat range hit a sweet spot for several key consumer segments across the global lab grown diamond market, including engagement rings, anniversary gifts, and fashion jewelry. This carat range is versatile enough to cater to a wide array of personal styles and budgets. In 2023, the average carat size for engagement rings remains around 1 carat, making this range particularly relevant. Moreover, with the jewelry market seeing a 15% surge in demand for custom and unique pieces, lab-grown diamonds offer a flexible and customizable option. Retailers have reported a notable increase in sales of lab-grown diamonds, with some even seeing a doubling in revenue from these items compared to the previous year. Surveys indicate that 60% of millennials and 45% of Gen Z consumers prefer lab-grown diamonds over mined ones due to ethical reasons. The improved perception of lab-grown diamonds, coupled with their accessibility and ethical advantages, continues to drive their dominance in the market. Furthermore, industry data shows that lab-grown diamonds currently make up 10% of the total diamond market, with projections suggesting this could rise to 20% by 2025.
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Asia Pacific is Shaping the Global Lab Grown Diamond Market, Capture Over 44.1% Market Share
The Asia-Pacific region stands as the largest consumer and producer of lab-grown diamonds (LGDs) globally. China and India are at the forefront, with China producing between 50-60% of the world's lab-grown diamonds and India contributing approximately 1.5 million carats annually. The region's dominance is bolstered by advanced technological capabilities, cost-effective production methods, and a robust manufacturing infrastructure. For instance, the cost of producing a lab-grown diamond through Chemical Vapor Deposition (CVD) has significantly decreased from USD 4,000 in 2008 to USD 300-500 in 2020. This reduction in production costs has made LGDs more accessible to a broader demographic, fueling demand. Additionally, the Asia-Pacific region benefits from a rapidly expanding middle class with increasing disposable income and a growing appetite for luxury goods. In 2023, the region saw a 25% increase in luxury goods consumption, with LGDs being a significant contributor.
China is the leading producer in Asia Pacific lab grown diamond market, with key players such as Ningbo CrysDiam Industrial, Shanghai Zheng Shi Technology, and Zhengzhou Sino-Crystal Diamond. India's emergence as a significant hub is also noteworthy, with its production facilities rapidly expanding, boasting over 150 active production centers. The region's ability to generate the highest revenue from LGD sales is attributed to its large-scale production capabilities and the increasing consumer awareness and acceptance of lab-grown diamonds as ethical and sustainable alternatives to mined diamonds. Furthermore, China's domestic market for lab-grown diamonds is expanding rapidly, with over 200 retail brands now offering LGDs. The versatility of lab-grown diamonds, utilized in both jewelry and industrial applications, has broadened their appeal significantly.
- Factors Enabling Dominance
Several factors contribute to the Asia-Pacific region's dominance in the lab grown diamond market. The region's advanced technological infrastructure and skilled labor force enable efficient and cost-effective production. For example, India's diamond polishing industry employs over 800,000 skilled workers, many of whom are now transitioning to the lab-grown sector. Additionally, the growing environmental and ethical consciousness among consumers, particularly younger generations, has increased the demand for sustainable and conflict-free diamonds. A survey in 2023 revealed that 70% of millennial and Gen Z consumers in Asia prefer lab-grown diamonds over natural ones. The Asia-Pacific region's regulatory environment also plays a role, with some countries adopting favorable policies for the production and certification of lab-grown diamonds. China alone issued over 5,000 new LGD certifications in the past year.
Key Companies:
- ABD Diamonds
- Applied Diamond Inc.
- Clean Origin.
- De Beers Group
- Diam Concept
- Diamond Foundry Inc
- Henan Huanghe Whirlwind Co., Ltd.
- Mittal Diamonds
- New Diamond Technology LLC
- Sandvik Ab
- Swarovski Ag
- Tomei Diamond Co. Ltd
Market Segmentation:
By Manufacturing Method:
- HPHT
- CVD
By Size:
- < 0.10 Carats
- 0.25 – 2.5 Carats
- > 5 – 10 Carats
By Nature:
- Colorless
- Colored
By Application:
- Fashion
- Industrial
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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