The lab-grown diamond industry is navigating a pivotal moment as falling prices, oversupply, and fraud concerns reshape the market. Yet, opportunities in both jewelry and tech sectors are fueling innovation and adaptation.
Plummeting Prices, Rising Sales
Over the past decade, lab-grown diamond prices have dropped significantly—by as much as 90–95% for one-carat stones—making them a fraction of the cost of natural diamonds. This affordability has driven their share of global diamond jewelry sales to 20% in 2024, up from nearly zero in 2015.
However, this price collapse has strained producers. Major players like WD Lab Grown Diamonds filed for bankruptcy, while Chinese and Indian manufacturers dominate with low-cost production.
Tackling Fraud and Regulation
Falling prices and value differences between lab-grown and natural diamonds have heightened fraud risks. Cases range from diamond swapping to sophisticated scams using fake inscriptions. The Gemological Institute of America (GIA) is advancing detection technology, offering instruments that can instantly verify a diamond’s origin.
India’s Gem and Jewellery Export Promotion Council (GJEPC) is also pushing for stricter consumer protections, aligning with updated U.S. Federal Trade Commission guidelines to ensure transparency and safeguard buyer confidence.
Pivoting Beyond Jewelry
Producers are exploring new niches. For instance:
- Diamond Foundry is pioneering diamond wafers for tech applications like semiconductors, leveraging diamonds’ ability to withstand high temperatures.
- Chinese manufacturers are shifting towards industrial applications, including solar energy and electronics.
Yet, not all producers can pivot successfully. “Producing diamond wafers requires advanced technology that most growers lack,” warns Martin Roscheisen, CEO of Diamond Foundry.
Innovating for Survival
To remain competitive, smaller producers are focusing on innovation, such as creating unique diamond shapes and expanding into costume and playful jewelry. Without differentiation, experts predict consolidation, leaving the market dominated by large-scale producers in India and China.