Lab Grown Diamond Market Size, Share & Industry Analysis, By Manufacturing Method (CVD and HPHT), By Size (Up to 2 Carat, Between 2 and 4 Carat, and Above 4 Carat), By Nature (Colorless and Colored), By Application (Industrial and Fashion), and Regional Forecast, 2024-2032

The global lab grown diamond market size was valued at USD 22.79 billion in 2023. The market is projected to grow from USD 25.89 billion in 2024 to USD 74.45 billion by 2032, exhibiting a CAGR of 14.11% during the forecast period.

Lab grown diamonds are man-made or artificial diamonds developed using Chemical Vapor Disposition (CVD) or High Pressure High Temperature (HPHT) manufacturing processes, which can be controlled to ensure quality. The product is produced in fine quality in laboratories within a few months, unlike natural diamonds, which require numerous years to be formed. Laboratory grown diamond is increasingly used for various applications, including jewelry, research, cutting tools, and machinery components, which significantly triggers its worldwide sales. Furthermore, they are more cost-effective compared to natural diamonds as it does not need mining and their wider availability further accelerates their adoption across countries.

The COVID-19 crisis negatively influenced the industry's expansion. The novel pandemic led to the temporary closure of laboratories and manufacturing plants, which declined synthetic diamond production. In addition, numerous individuals faced financial strains due to job-related disruptions and business shutdowns, notably in 2020. This factor dropped the demand for non-essential products, including artificial diamonds.

Lab Grown Diamond Market Trends

Growing Sustainability Trend to Provide Growth Opportunities

The rapidly growing sustainability trend across countries supports lab grown diamond adoption. The product is eco-friendly as it does not cause damage to the earth and produces an insignificant amount of waste. These diamonds are also more sustainable compared to natural diamonds as they do not need mining, which can have considerable environmental impacts such as deforestation, air pollution, land erosion, carbon emission, and water pollution. Moreover, laboratory-grown diamonds consume a limited amount of electricity that can be generated from renewable resources and use no harmful substances or chemicals in the manufacturing process. In this respect, the rising knowledge regarding environmental protection will boost product sales, notably among eco-conscious consumers.

Lab Grown Diamond Market Growth Factors

Increasing Demand for Lab Grown Diamond Jewelry to Drive Market Growth

Recent years have witnessed escalating demand for laboratory-grown diamond jewelry worldwide which increases product sales. Jewelry, including these diamonds, is offered in a wide variety, such as rings, earrings, bracelets, and necklaces, to suit end users' needs. This jewelry is a more affordable option for middle-income consumers with budget constraints, as its cost is significantly less than mined or natural diamond jewelry. Furthermore, several celebrities worldwide are also promoting the use of the product, which is accelerating sales. Key industry players, such as Variation, Limelight Diamonds, House Of Quadri, Syndiora, and Emori, emphasize providing a diversified range of laboratory-grown diamond jewelry. In addition, the rising demand for affordable and quality jewelry items, notably among women, will contribute to the global market expansion in the foreseeable future.

High Product Use across Industries to Fuel Sales Worldwide

The increasing use of laboratory grown diamonds across various industries, including cutting tools, machinery components, semiconductor devices, and abrasives, due to their unique characteristics, boosts market growth. The strength and hardness of the product fuels its adoption for polishing, drilling, cutting, and grinding purposes across industries such as automotive. The product is added to saw edges to make it powerful and efficient for cutting hard materials. Moreover, these man-made diamonds have high thermal conductivity, which increases their utilization in electronic devices such as diode lamps and computers as heat spreaders. As a result, the growth of industries, including electronics, automotive, and semiconductors is contributing to the global lab grown diamond market growth.

RESTRAINING FACTORS

Availability of Alternative Products & Quality Concerns Hamper Product Sales

The easy availability of alternative products, such as natural diamonds and precious gemstones, including emeralds, sapphire, garnet, amethyst, and peridot, considerably hampers artificial diamond sales. Multiple properties of these substitutes' such as aesthetic beauty, quality, and durability, increase consumer inclination toward them. Furthermore, quality concerns about laboratory-grown diamonds related to color and durability among consumers compared to mined or natural diamonds, have also led to a decline in sales. These quality concerns result in consumers viewing the product as inferior to its alternatives and hesitating to purchase it. In addition, limited awareness regarding artificial diamonds negatively influences market expansion.

Lab Grown Diamond Market Segmentation Analysis

By Manufacturing Method Analysis

HPHT Segment Led owing to Its Better Quality 

Based on manufacturing method, the market is segmented into CVD and HPHT.

The HPHT segment dominated the global market in 2023. The HPHT method typically assists in developing better quality diamonds than the CVD process, making it more prevalent in developing the product. Moreover, the process closely resembles the production method of natural/mined diamonds and provides better clarity grading and color quality.

The CVD segment will grow at the highest CAGR in the coming years as manufacturers increasingly prefer the CVD process for developing laboratory grown diamonds as it uses less energy and is faster than the HPHT method. The development of CVD diamonds in wide color varieties will further support the growth of the segment.

By Size Analysis

Up to 2 Carats Segment Dominates owing to Affordability

Based on size, the market is divided into up to 2 carat, between 2 & 4 carat, and above 4 carat.

The up to 2-carat segment holds the largest market share owing to the lower prices of diamonds in the category compared to those above 2 carats. Wedding and engagement rings, including up to 2-carat diamonds, are also highly popular among end users as they are easy to wear daily due to their low weight and small size.

The between 2 and 4-carat segment holds the second-leading market share. Diamonds between 2 and 4 carat sizes are expensive and highly preferred by high-income consumers. Moreover, rising consumer disposable income across countries and the increasing demand for premium jewelry items, including these diamonds, are favoring the expansion of this segment.

By Nature Analysis

Colorless Segment Dominated owing to its High Quality

Based on nature, the market is bifurcated into colorless and colored.

The colorless segment led the global market in 2023. Colorless lab grown diamonds are in high demand owing to their quality and better value in terms of grading. The high use of these diamonds in various applications, including cutting tools, electronics, and jewelry, further favors growth of this segment.

The colored segment holds the second-dominating global lab grown diamond market share. Colored lab grown diamonds are increasingly preferred for jewelry items due to their aesthetic appeal. In addition, the lower cost of these diamonds compared to colorless diamonds will accelerate product sales in the forthcoming years.

By Application Analysis

Increasing Product Use Across Various Industries to Support Segmental Expansion

Based on application, the market is classified into industrial and fashion.

The industrial segment to lead the market throughout the forecast period. The high use of the product in multiple industries, including electronics, semiconductors, and research, has escalated the segment’s growth. These diamonds are also highly used in various tools and machinery as cutters. Moreover, the hardness of the material triggers its utilization for polishing and drilling purposes across industries.

The fashion segment will grow at the fastest rate in the near term. Laboratory-grown diamonds are used in numerous fashion products, including watches, bracelets, and rings. The rapidly growing fashion industry and changing fashion trends are driving the demand for these products worldwide.

REGIONAL INSIGHTS

Based on geography, the market is studied across Asia Pacific, North America, Europe, South America, and the Middle East and Africa.

Asia Pacific dominates the global market, favored by the high manufacturing of quality laboratory grown diamonds in various carats and forms across countries such as China and India. Furthermore, government initiatives promoting product development supports the regional expansion. For instance, in 2023, Nirmala Sitharaman, Finance minister of the Indian government, unveiled a promotional scheme for the research and development of laboratory-grown diamonds in the country. The increasing number of weddings in the region will escalate the demand for lab grown diamond rings for wedding and engagement ceremonies in the coming years.

North America held the second-largest market share in 2023. Increasing consumer disposable income in countries including the U.S. and Canada has improved buying capacity, boosting the adoption of laboratory grown diamonds for investment purposes. Moreover, rapidly growing industries such as automotive and electronics in North America are expected to trigger product sales in the near term.

In Europe, market growth is backed by rising sustainability trends across countries such as the U.S., Germany, France, and Italy, which increases demand for laboratory-grown diamonds as they are more environmentally friendly than mined diamonds. The adoption of the product is notably increasing among youth in the region who prefer affordable, appealing, and eco-friendly diamond jewelry.

In South America, the increasing number of working women has enhanced the purchasing power, leading to a rise in laboratory-grown diamond jewelry sales in the region. Furthermore, the affordability of the product compared to natural diamonds positively influences the global lab grown diamond market forecast.

The Middle East & Africa markets have benefitted from growing consumer knowledge regarding the authenticity of laboratory-grown diamonds and accelerating product utilization for cutting tools.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain Competitive Edge

Prominent industry participants offer laboratory grown diamonds in various shapes and forms, including colorless & color and different carats, to suit the end user’s needs and accelerate product sales. Companies are also emphasizing on collaborations with other brands to expand their global presence and escalate production. In addition, manufacturers are working to enhance consumer consciousness regarding the benefits of synthetic diamonds compared to natural diamonds to escalate sales. Furthermore, the expansion of laboratory-grown diamond jewelry manufacturers presents new sales opportunities for market players. For instance, in February 2024, Ayaani Diamonds, an India-based laboratory-grown diamond jewelry company, unveiled its new store in Bandra West, Mumbai, India.

List of Top Lab Grown Diamond Companies:

• Mini Diamonds (India)


• WD Lab Grown Diamonds (U.S)


• De Beers Group (U.K)


• Solitario (India)


• Adamas One Corp (U.S)


• Diamond Foundry Inc. (U.S)


• Element Six UK Ltd (U.K)


• Henan Huanghe Whirlwind Co., Ltd (China)


• Diam Concept (France)


• ABD Diamonds (India)

KEY INDUSTRY DEVELOPMENTS:

• August 2024 – Mini Diamonds, an India-based diamond and jewelry brand, unveiled its laboratory grown diamond jewelry shop in South Mumbai, India, through its subsidiary, Namra Jewels.


• August 2024 - Parasamani Inc., a Canadian jewelry company, collaborated with Mini Diamonds, an India-based diamond and jewelry brand. Under the partnership, Parasamani would promote Mini Diamond’s laboratory-grown diamond jewelry throughout Canada.


• July 2024 – Limelight Diamonds, an India-based lab grown CVD diamond company, launched its new store in Navi Mumbai, India. The company aimed to expand throughout the country by opening additional stores.


• May 2024 – Lightbox Jewelry Ltd, a U.S.-based laboratory grown diamond jewelry company, introduced a promotional deal and declined its product prices by up to 40% to accelerate product sales. The company offers a wide product offering, including 2 carat lab grown diamonds, lab grown pink diamonds, and 3 carat lab grown diamonds.


• August 2023 – Adamas One Corp, a U.S.-based company manufacturing laboratory-grown diamonds, acquired Flawless Allure Grown Diamonds, a Mumbai-based laboratory grown diamond company, to expand its diamond production.

REPORT COVERAGE

The report provides a detailed global lab grown diamond market analysis and focuses on significant aspects, such as competition landscape, regional analysis, manufacturing method, size, nature, and application. Besides this, it offers insights into various market trends and highlights key industry developments. In addition to the above-mentioned factors, the report encompasses several other factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation