Lab-grown diamonds capture 20% market as affordability and ethics drive demand

Diamonds, once revered as a symbol of “eternal value” and commanding the highest prices among gemstones, are seeing their value collapse. Unlike gold prices, which have more than doubled over the past three years, natural diamond prices have nearly halved in the same period. 

According to the International Diamond Exchange (IDEX) on the 27th Nov., the diamond price index fell to 86.08. This index, which tracks international diamond prices, is based on February 2001 prices (set at 100). The current level represents a drop of over 45% from the recent five-year high of 158.39 in March 2022. Lab-grown diamonds are not fake. They share the same composition, crystal structure, hardness, and optical properties as natural diamonds. While natural diamonds form over millions to billions of years under high pressure and temperature. 120–200 km below the Earth’s surface, lab-grown diamonds replicate this process in weeks.

A decade ago, lab-grown diamonds were about 10% cheaper than natural diamonds, but due to technological advancements and increased production, they now cost only 10–20% of natural diamonds. This price drop has significantly boosted their market share. Lab-grown diamonds, 10-20% cheaper, capture 20% market as affordability and ethics drive demand.