Global Lab Grown Diamonds Market Report By Type (CVD (Chemical Vapor Deposition), HPHT (High Pressure High Temperature)), By Nature (Rough, Polished), By Color (Colorless, Colored), By Application (Machine and Cutting Tools, Electronics, Healthcare, Gemstone, Heat Sinks & Exchangers, Optical, Laser and X-ray, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Lab Grown Diamonds Market size is expected to be worth around USD 29.3 Billion by 2033, from USD 14.2 Billion in 2023, growing at a CAGR of 7.5% during the forecast period from 2024 to 2033.

Lab-grown diamonds are diamonds produced in a controlled environment using advanced technology that replicates natural diamond formation. They have the same physical and chemical properties as mined diamonds. Lab-grown diamonds are more sustainable and cost-effective, making them a popular choice in the jewelry industry.

The lab-grown diamonds market involves the production and sale of diamonds created in laboratories. It caters to the jewelry, fashion, and industrial sectors. Growth is driven by increasing consumer demand for sustainable and ethical products, lower costs, and improved technological advancements in diamond synthesis.

Lab-grown diamonds have gained significant popularity due to their ethical sourcing, lower cost, and environmental benefits. Production primarily relies on two methods: High-Pressure High-Temperature (HPHT) and Chemical Vapor Deposition (CVD). These methods simulate natural diamond formation but with lower environmental impact.

With 3 million carats produced annually, China leads in global production, followed by the USA (1 million carats) and Singapore, according to the Gem & Jewellery Export Promotion Council (GJEPC).

The surge in demand is driven by growing awareness of sustainable luxury goods, with consumers increasingly seeking ethical alternatives. This trend is reflected in a 75% year-over-year increase in searches for “ethical jewelry,” alongside an 83% rise in interest for “lab-grown diamonds,” as noted by ExJewel.

These figures highlight a strong shift towards eco-friendly products, especially among younger and eco-conscious buyers. The lower cost, compared to mined diamonds, further adds to its appeal across various consumer segments.

Market competitiveness is high, with established brands and new entrants focusing on innovation and branding to differentiate their products. While the market is maturing in developed regions, emerging markets present significant growth potential.

On a broader scale, the industry supports sustainable practices and reduces the ecological footprint associated with mining. Locally, lab-grown diamond production creates jobs and promotes innovation within the jewelry sector.

Government regulations increasingly favor sustainable materials, offering indirect support to the lab-grown diamond industry. These regulations push manufacturers towards higher production standards and improved transparency, ultimately contributing to long-term market growth.

Key Takeaways

• The Lab Grown Diamonds Market was valued at USD 14.2 billion in 2023 and is expected to reach USD 29.3 billion by 2033, with a CAGR of 7.5%.
• In 2023, CVD Lab-Grown Diamonds dominated the type segment due to their cost-efficiency and quality.
• In 2023, the Machine and Cutting Tools segment led applications with 27.8% share, driven by demand in industrial applications.
• In 2023, Colored Lab-Grown Diamonds were popular, driven by their appeal in jewelry design.
• In 2023, North America held a 36.4% share of the market, valued at USD 5.17 billion, due to technological advancements.

Type Analysis

CVD lab-grown diamonds dominate due to their superior quality and scalability.

In the lab-grown diamonds market, segmented by type, Chemical Vapor Deposition (CVD) diamonds emerge as the leading sub-segment. CVD diamonds’ dominance is attributed to the method’s ability to produce high-quality diamonds that can rival naturally occurring ones.

This process allows for better control over the diamond’s chemical properties, leading to fewer defects and a more predictable product. Moreover, CVD technology scales more effectively compared to other methods, making it more suitable for large-scale production which meets the growing market demand.

High Pressure High Temperature (HPHT) diamonds, the other key type, are primarily used for specific industrial applications where durability and hardness are paramount. Though essential, their growth potential is somewhat overshadowed by the versatility and technological advancements associated with CVD diamonds.

Application Analysis

Machine and cutting tools lead with 27.8% due to their high demand in industrial applications.

Lab-grown diamonds have found a significant application in machine and cutting tools, accounting for 27.8% of the market. This prominence is largely because of the diamond’s unmatched hardness and thermal conductivity, which are ideal for cutting, drilling, and machining applications.

Industries value lab-grown diamonds in these settings for their durability and efficiency, which significantly reduce tool wear and maintenance costs.

Other applications such as electronics, healthcare, and gemstones also benefit from the unique properties of lab-grown diamonds.

In electronics, they are used in heat sinks and exchangers due to their excellent thermal properties. The healthcare sector utilizes them in various imaging and cutting tools, while in the gemstone market, they provide a cost-effective and ethical alternative to natural diamonds.

Color Analysis

Colored lab-grown diamonds are preferred for their unique aesthetic and customization options.

Colored lab-grown diamonds, which can be produced in various hues through controlled manufacturing processes, are increasingly favored in both fashion and industrial applications.

This preference is driven by the growing consumer interest in personalized and unique jewelry options that stand out from the traditional colorless diamond. Additionally, colored diamonds are used in industries for coding purposes and in devices where color properties can be harnessed for specific technical needs.

Colorless lab-grown diamonds, while traditional and highly sought after in the gemstone market for their classic appeal, are more common and face stiffer competition from natural diamonds, limiting their distinctiveness in the consumer market.

Key Market Segments

By Type

• CVD (Chemical Vapor Deposition)
• HPHT (High Pressure High Temperature)

By Nature

• Rough
• Polished

By Color

• Colorless
• Colored

By Application

• Machine and cutting tools
• Electronics
• Healthcare
• Gemstone
• Heat Sinks & Exchangers
• Optical, Laser and X-ray
• Others

Drivers

Demand for Ethical Jewelry and Cost Advantages Drive Market Growth

The Lab Grown Diamonds Market is driven by several key factors. Rising demand for ethical and sustainable jewelry is a major driver. Consumers are increasingly prioritizing eco-friendly and conflict-free alternatives, making lab grown diamonds an attractive option.

Cost-effectiveness compared to mined diamonds further supports market growth. Lab grown diamonds offer the same quality as natural diamonds but at a lower price, appealing to cost-conscious buyers.

Advancements in production technologies also boost the market. Improved manufacturing techniques have increased efficiency, reduced costs, and enhanced the quality of lab grown diamonds.

Increasing consumer awareness and acceptance contribute significantly to growth. As more consumers understand the benefits of lab grown diamonds, their willingness to purchase them has grown.

Restraints

Perception and Competition Restrain Market Growth

The Lab Grown Diamonds Market faces several restraining factors. The perception of lower value compared to natural diamonds limits adoption. Many consumers still view mined diamonds as more valuable, impacting demand for lab grown options.

Limited availability of high-quality lab grown diamonds also constrains growth. Production challenges sometimes result in lower-quality outputs, affecting consumer trust.

Competition from traditional mined diamonds further restrains market growth. Established players with strong brand presence continue to dominate the jewelry market, making it harder for lab grown diamonds to gain market share.

Regulatory and certification challenges add complexity. The lack of standardized certification can affect consumer confidence, slowing down market expansion.

Opportunity

Emerging Markets and Brand Integration Provide Opportunities

The Lab Grown Diamonds Market offers various growth opportunities. Expansion in emerging markets is a promising avenue. Rising disposable incomes in countries like India and China boost demand for affordable luxury items, including lab grown diamonds.

Integration with fashion and luxury brands presents another opportunity. Collaborations with high-end designers can enhance product visibility and attract new customers.

Development of larger carat lab grown diamonds also supports growth. Advances in production are enabling the creation of bigger stones, meeting demand for statement jewelry.

Adoption in industrial applications further expands market potential. Lab grown diamonds are used in semiconductors and other high-tech applications, opening new revenue streams.

Challenges

Energy Use and Technological Needs Challenge Market Growth

The Lab Grown Diamonds Market faces various challenges. High energy consumption in production is a major issue. Manufacturing processes require significant electricity, impacting sustainability claims and production costs.

Price volatility of raw materials adds to the challenges. Fluctuations in the cost of graphite and gases used in production can affect pricing and profitability.

The need for continuous technological upgrades is another challenge. To remain competitive, manufacturers must invest in new technologies, which can be costly.

Fluctuations in consumer preferences further complicate growth. Changing tastes and trends can affect demand, requiring brands to adapt quickly. These challenges emphasize the complexities of sustaining consistent growth in the market.

Growth Factors

Millennial Demand and Branding Efforts Are Growth Factors

Rising millennial and Gen Z demand drives growth in the Lab Grown Diamonds Market. Younger consumers prioritize sustainability and value, making lab grown diamonds a preferred choice.

Government support for sustainable alternatives also boosts market growth. Policies encouraging the adoption of eco-friendly products benefit the lab grown diamond sector.

Increased marketing and branding efforts contribute significantly to growth. Companies are investing in campaigns that highlight the ethical and environmental benefits of lab grown diamonds, improving consumer perception.

Growing focus on conflict-free jewelry supports market expansion. Consumers are more aware of ethical sourcing, driving demand for lab grown options.

Emerging Trends

Engagement Rings and E-commerce Are Latest Trending Factors

The increased use of lab grown diamonds in engagement and wedding rings is a significant trend. More couples are choosing sustainable and affordable options, boosting demand.

The rise of colored lab grown diamonds is another trend. Consumers are drawn to unique colors, such as pink, blue, and yellow, driving interest and sales.

Growing e-commerce sales channels further support market growth. Online platforms make it easier for consumers to access and purchase lab grown diamonds, increasing market penetration.

The use of lab grown diamonds in high-tech applications, like semiconductors, is also trending. This expands the scope of the market beyond traditional jewelry

Regional Analysis

North America Dominates with 36.4% Market Share

North America leads the Lab Grown Diamonds Market with a 36.4% share, valued at USD 5.17 billion. This dominance is driven by rising consumer demand for sustainable and ethical jewelry, increasing awareness of lab-grown diamonds, and high disposable incomes. The presence of major producers and advanced technology also supports the market’s growth in this region.

The region benefits from strong consumer preference for eco-friendly and conflict-free diamonds. The market is further supported by established retail networks and growing online sales channels, making lab-grown diamonds easily accessible. Additionally, favorable marketing campaigns and collaborations with luxury brands enhance the market’s appeal in North America.

North America’s influence in the Lab Grown Diamonds Market is expected to grow as consumer awareness of ethical jewelry continues to rise. Innovations in diamond manufacturing technology, coupled with expanding retail partnerships, will further boost market growth in the region.

Regional Mentions:

• Europe: Europe has a growing presence in the Lab Grown Diamonds Market, driven by high demand for sustainable luxury. Strong ethical consumer behavior and rising adoption of lab-grown diamonds contribute to steady growth.
• Asia Pacific: Asia Pacific is rapidly expanding its market share due to increasing demand for affordable luxury. Key contributors like China and India drive growth, supported by rising disposable incomes and fashion trends.
• Middle East & Africa: Middle East & Africa show rising interest in lab-grown diamonds, driven by demand for unique and ethical jewelry. The region’s luxury market expansion supports this trend.
• Latin America: Latin America is gradually adopting lab-grown diamonds, focusing on affordable alternatives to natural diamonds. Brazil and Mexico lead growth, supported by increasing consumer awareness of ethical options.

Key Regions and Countries covered іn thе rероrt

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The Lab Grown Diamonds market is driven by major companies focusing on sustainability, innovation, and affordability. The top four players in this market are De Beers Group, ALTR Created Diamonds, Diamond Foundry, and New Diamond Technology.

De Beers Group leads the market with its brand, Lightbox, which offers high-quality lab grown diamonds. The company focuses on transparency and affordability, providing clear pricing and consistent quality. De Beers also invests heavily in R&D to improve production processes, enhancing its market presence.

ALTR Created Diamonds is recognized for its premium lab grown diamonds, emphasizing quality and craftsmanship. The company targets luxury markets, offering a range of colors and cuts. ALTR uses innovative technology to produce diamonds that rival mined ones, strengthening its competitive edge.

Diamond Foundry is known for its sustainable production, using renewable energy sources. It focuses on ethical sourcing and offers custom-made diamonds for various jewelry designs. The company emphasizes eco-friendly practices and innovation, appealing to environmentally conscious consumers.

New Diamond Technology stands out for producing large, high-quality lab grown diamonds. The company invests in cutting-edge technology to create clear, colorless diamonds for the luxury segment. It focuses on expanding its global reach through strategic partnerships and collaborations.

These leading companies drive the Lab Grown Diamonds market by focusing on sustainable production, expanding product ranges, and improving diamond quality. They emphasize affordability, transparency, and innovation to maintain competitive advantage and capture consumer interest.

Top Key Players in the Market

• De Beers Group
• ALTR Created Diamonds
• Diamond Foundry
• Gemesis
• New Diamond Technology
• Swarovski
• Chatham Created Gems & Diamonds
• Charles & Colvard
• Pure Grown Diamonds
• Stuller, Inc.

Recent Developments

• Trent Ltd.: In October 2024, Trent Ltd., a Tata Group subsidiary, launched ‘Pome,’ a lab-grown diamond (LGD) brand, in its Westside stores. The collection includes earrings, rings, necklaces, and bracelets, crafted to match the quality of natural diamonds. Pome’s competitively priced jewelry aims to make diamonds more accessible to a broader audience.
• Pandora: In June 2024, Pandora launched its lab-grown diamond collection in Denmark, marking the first European market to feature Pandora’s innovative diamonds following successful launches in the Americas, Australia, and the UK. The collection includes rings, necklaces, and earrings, aligning with Pandora’s commitment to sustainable luxury.
• De Beers Group: In May 2024, De Beers announced that, starting in 2025, it will provide country-of-origin information for rough diamonds larger than 1.25 carats registered on its Tracr platform. This move aligns with G7 import regulations and aims to enhance transparency and consumer confidence in the diamond supply chain.
• KAY Jewelers: In September 2024, KAY Jewelers, in collaboration with designer Monique Lhuillier, introduced its first collection of colored lab-created diamond engagement rings. The collection features pink, blue, and yellow diamonds set in 18K gold, with carat weights ranging from 1.5 to 2.625 carats, offering a blend of classic sophistication and modern innovation.

Report Scope