The Diamond Disruption: Why Companies Should Compete On Value, Not Just Origin

By Amish Shah, Forbes Councils Member

It’s truly remarkable to witness the innovation reshaping the diamond industry and fundamentally challenging the century-old narrative that value resides solely in a diamond’s origin.

For decades, consumers have been drawn to earth-mined diamonds. Many have seen them as a rare, value-retaining investment with inherent beauty and a way to capture “priceless” moments. However, with lab-grown diamonds becoming more popular, the industry is changing. As the founder of a company that specializes in lab-grown diamonds, I believe this presents an opportunity for all players in the diamond space to compete based on the value they provide.

The Growth Of Lab Diamonds And Their Impact On The Industry

Many consumers today have ethical concerns surrounding earth-mined diamonds, which have been criticized for disrupting land and wildlife, as well as conflict and human rights concerns. Progress toward ethical mining has been positive, but some still suggest conflict-free diamonds are a “myth.” Still, I believe any progress is good progress.

According to the New York Times, there are areas from which natural diamonds are ethically sourced and sold “without human rights issues and with environmentally sound practices.” There are also stronger regulations in place today, and the U.S. only allows stones to be imported if they’re from conflict-free countries, the article said. Still, the Times noted that despite less transparency and fewer regulations on lab-grown diamonds in many areas outside the U.S., some buyers want gems “without a back story,” so they opt for lab-grown ones.

This disruption isn’t just ethics-driven; it’s technological. The cost of creating high-quality, gem-grade diamonds above ground has declined over the years due to innovation, and technological

advancements have enabled a tenfold increase in the supply of lab-grown diamonds since 2018. This technological efficiency can enable consumer access due to more affordable prices.

A survey of almost 17,000 U.S. couples who married in 2024 or were planning to marry in 2025 found that 52% of respondents had an engagement ring with a lab-grown stone. Moreover, Tenoris found in its U.S. diamond sales data that unit sales of finished jewelry set with lab-grown diamonds rose 48% year-over-year.

To me, the message is clear: Many consumers think differently. These consumers are drawn to lab-grown diamonds for the ethics, price and/or flexibility. They can choose diamonds based on desired size and design aesthetics without being as budget-constrained. This can allow for more creativity in jewelry design and allows more consumers to acquire pieces reflective of their personal taste, not just what a mined diamond budget allows.

As a result of this growth, earth-mined diamond transactional prices have plummeted “to the lowest levels this century,” with the price of some carats being almost half of what they were three years ago, according to The Guardian. Some natural diamond companies have also seen valuations decline. Anglo American, for example, wrote down the value of De Beers by $2.9 billion earlier this year.

Challenges Still Facing Lab-Grown Diamonds

However, it’s important to note that lab-grown diamond production is still an energy-intensive process, and few companies currently operate on renewable energy sources backed by credible sustainability verification. The category faces several market challenges as well, including:

• Commoditization pressure

• Lack of an established resale market

• Ongoing tension between luxury and mass-market positioning.

The Core Realization: Value Lies In Creation

Facing the growing popularity of lab-grown diamonds, the response of some players in the traditional diamond industry has been telling. Where I’ve found the traditional industry often focuses its criticism is on price. However, for long-term success, I believe the diamond industry—both traditional and lab-grown diamond companies—must move beyond price-based competition and develop compelling value propositions that transition from the current component-focused conversation.

In my view, the fundamental truth everyone attached to the trade must grasp is this: The diamond industry is evolving. As I see it, the future is not about controlling supply; it represents a free market where value must be earned. I believe “mined equals value” is a myth that distracts from the crucial task of rediscovering how to create real value through design, craftsmanship, brand storytelling and emotional connection. From my observations, these are the values consumers demonstrably will pay for, regardless of origin.

In my view, an obsession with component cost and supply control stifles true value creation in the industry. “Margins” isn’t a dirty word; they are essential. Yet, the diamond industry has struggled to attract investors in recent years because the industry is facing challenges in commanding attractive multiples based on return on investment. The value chain must shift focus from the cost of the component to the value of the creation.

The Industry’s Path Forward: The Five Pillars Of Diamond Value

The solution transcends origin: Design and make beautiful jewelry with diamonds, period. Market the emotional value, the artistry and the story. Then, let the informed consumer choose. Coexistence between natural and lab-grown diamonds is possible, but only if diamond players compete on the real, actual value they can provide.

I believe the future belongs to companies that build on these pillars:

• Creativity: Visionary design that tells a story;

• Craftsmanship: Exceptional skill transforming materials into art;

• Consistency: Reliable quality and experience;

• Calibration: Precise alignment with evolving consumer values and desires;

• Compliance: Uncompromising ethical and environmental integrity.

Companies that simply want control over the component could vanish. To me, the true value of a diamond lies not in the component but in the creation. It won’t matter what growing a diamond costs; what matters is the value infused into the journey. How desirable is the final jewel? What is the consumer willing to pay for that artistry and resonance?

The Final Cut

I believe value is created. A diamond’s true brilliance emerges from the spark of human vision and ingenuity, as well as the artisan’s hand that transforms carbon into captivating beauty. The empowered consumer seeks this creation. The future belongs to those who forge it.

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