Lab Grown Diamonds Market

Lab Grown Diamonds Market Overview

The global Lab Grown Diamonds Market size was valued at USD 18.91 billion in 2023 and is predicted to reach USD 34.06 billion by 2030 with a CAGR of 8.8% from 2024-2030. The lab-grown diamonds market, also as known as synthetic diamond refers to the sector of the gemstone industry dedicated to producing, distributing, and selling diamonds, created in laboratory environments. These diamonds are made by using advanced technological processes such as High-Pressure High Temperature (HPHT) or Chemical Vapor Deposition (CVD), which replicate the natural conditions under which diamonds form in the earth. Lab-grown diamonds have the same physical, chemical, and optical properties as natural diamonds but are generally more affordable and environmentally sustainable. The market includes a wide range of players, from established jewellery brands to specialized lab-grown diamond companies. It caters to diverse consumer segments, including those seeking engagement rings, fashion jewellery, and industrial applications.

Market Dynamics and Trends

The increasing awareness and demand for lab-grown diamonds, due to their lower cost and perception as more ethical and environmentally friendly, particularly among younger consumers, are driving the growth of the synthetic diamond globally. For instance, the demand for lab grown diamonds is growing at a significant rate, rising from 3.5 percent in 2018 to 18.5 percent in 2023 and is expected to exceed 20% by the end of 2024. This significant increase highlights the shifting consumer preferences and the expanding market for lab-grown diamonds.

Also, the global market for lab-grown diamonds is experiencing notable growth, propelled by continuous advancements in lab-grown diamond technologies. These technologies play a pivotal role, facilitating increased production efficiency and decreased costs, making lab-grown diamonds more accessible to a broader market segment. For instance, in May 2024, Diamond Quanta, developed the 'Unified Diamond Framework,' a technique that allows new elements to be seamlessly integrated into the diamond's structure without disrupting its crystalline integrity. This innovation transforms diamond into a high-performance semiconductor that supports both negative and positive charge carriers, enhancing conductivity and reducing the impact of defects on carrier transport. These technological advancements are driving the growth of the lab grown diamonds market.

Additionally, the collaboration of research institutions, technology companies, and industry leaders drives the lab-grown diamond market. Combining their expertise and resources, these organizations developed advanced techniques that enhance the properties of lab-grown diamonds, resulting in better conductivity and fewer defects. For instance, in September 2023, Lightbox, a lab-grown diamond brand partnered with Element Six, a company specialised in providing synthetic diamond, to produce diamonds using CVD method in Oregon. This method creates unique properties, such as nitrogen vacancies, which gives the diamonds a beautiful pink colour.

However, the perception that synthetic diamonds are of inferior quality from natural diamonds limits the adoption of these diamonds which in turn restrains the market growth. On the contrary, the integration of Artificial Intelligence (AI) powered grading in lab grown diamond is expected to create ample opportunities in the future. These AI-powered grading in the lab-grown diamond industry will enhance quality assessment by providing greater accuracy, consistency, and speed in evaluating diamonds cut, clarity, color, and carat weight. Utilizing AI algorithms trained on extensive datasets, the technology will minimize human error and subjectivity, ensuring reliable and uniform grading results. Also, it is expected to quickly identify and classify inclusions and imperfections that might be missed by human graders, improving quality control.

Segmentation and Scope of Study

The lab grown diamonds market report is divided on the basis of type, manufacturing method, nature, price range, application, distribution channel, and region. On the basis of type, the market is divided into rough and polished. On the basis of manufacturing method, the market is divided into HPTP and CVD. On the basis of nature, the market is segmented into colourless and coloured. On the basis of price range, the market is segmented into luxury, mid-range and affordable. On the basis of application, the market is classified into jewellery and industrial. On the basis of distribution channel, the market is categorized into online retail, brick-and-mortar retail, and direct sales. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the lab grown diamonds market share at present and is expected to continue its dominance throughout the forecast period. This dominance is due to advanced technological capabilities and extensive research and development efforts focused on delivering high-quality lab-grown diamonds for jewelry, technology, and industrial sectors. For instance, in November 2023, Adamas One Corp. announced the initial delivery of high-quality colorless diamonds in the D, E, and F color range, marking a significant milestone achieved through extensive internal research and development efforts. This successful delivery fulfills the company's commitment to providing the highest quality lab-grown diamonds and supports its expansion plans as the market for synthetic diamonds continues to grow.

Also, the collaboration among local and international organizations in this region to meet the rising demand for lab-grown diamonds is another significant driver for the growth of the lab grown diamonds market. For instance, in January 2024, the International Gemological Institute (IGI) and the Diamond Manufacturers and Importers Association (DMIA) launched a same-day diamond verification service for DMIA members and other manufacturers. This service guarantees expedited turnaround times for both single stones and parcels, developed through collaboration between IGI and DMIA. Such initiatives streamline the verification process, strengthening confidence in lab-grown diamonds and fueling market expansion.

On the other hand, Asia Pacific is considered fastest growing region in the lab grown diamond industry owing to the rising government initiatives in countries such as India and China. These initiatives aim to promote lab grown diamond’s production and reduce the imports reliance by enabling local production of these synthetic diamonds. For example, in February 2023, the Indian government approved USD 2.4 billion over five years to establish a lab-grown diamond research centre at IIT Madras. This centre aims to support the domestic gem and jewellery industry by enabling local production of lab-grown diamonds and reducing reliance on imports.

Moreover, the increasing production of synthetic diamonds by countries such as China and Japan to meet the growing demand of consumers is another factor driving the lab grown diamond market growth. According to a report published by Gems and Jewellery Trade Association, China in 2023, China accounted for around 40-50 percent of the global production capacity at 20 million carats last year, making it the world's largest producer. This dominant position underscores the significant role of key players in the market, further propelling the industry's expansion.

Competitive Landscape

Various key players in the lab grown diamond industry includes Swarovski, James Allen, Clean Origin, Blue Nile, Ritani, Diamond Foundry, Henan Huanghe Whirlwind Co., Ltd., Ada Diamonds, MiaDonna, Raven Fine Jewelers and others. These market players are opting various strategies such as collaboration to maintain their dominance in the market.

For instance, in February 2024, Diamond Foundry, a Silicon Valley startup, announced to open a lab-grown diamond factory in Trujillo, Spain that will begin test production between September to December 2024. The factory will have 168 plasma reactors using Diamond Foundry's patented CVD (chemical vapor deposition) method and is expected to produce over 2 million carats of diamonds per year.

Moreover, in August 2023,  Ritani, a leading online jeweler, expanded its lab-grown diamond offering, including the larger carat diamonds of over 11 carats. This expansion offers customers more options for exquisite, eco-friendly lab-grown diamonds that are renowned for their exceptional radiance, cut, and clarity, rivalling their earth-mined counterparts.

Key Benefits

• The report provides quantitative analysis and estimations of the lab grown diamonds market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future lab grown diamonds market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the lab grown diamonds market is provided in the report.

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Lab Grown Diamonds Market Key Segments

By Type 

• Rough

• Polished

By Manufacturing Method

• HPHT

• CVD

By Nature

• Colorless

• Colored

By Price Range

• Luxury

• Mid-range

• Affordable 

By Application

• Jewellery 

• Industrial 

By Distribution Channel

• Online Retail

• Brick-and-Mortar Retail

• Direct Sales

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 18.91 Billion
Revenue Forecast in 2030	USD 34.06 Billion
Growth Rate	CAGR of 8.8% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Increasing awareness and demand for lab-grown diamonds is driving the market growth. The continuous advancement in lab grown diamond technologies propels market growth.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Swarovski

• James Allen

• Clean Origin

• Blue Nile

• Ritani

• Diamond Foundry

• Henan Huanghe Whirlwind CO., Ltd.

• Ada Diamonds

• MiaDonna

• Raven Fine Jewelers