Once a rising favourite among modern buyers, lab-grown diamonds are now facing a dramatic fall from grace. With production in countries like India and China surging, prices of synthetic diamonds have crashed, causing uncertainty among consumers and reshaping the global diamond market.
Natural diamonds experienced a dip in value around mid-2022, largely due to growing interest in lab-grown alternatives among younger consumers. However, the situation has reversed. Wholesale prices for one and two-carat lab-grown diamonds have dropped by nearly 96% since 2018, raising doubts about their long-term value and luxury perception. Experts caution that these stones risk becoming everyday fashion accessories rather than symbols of luxury, especially in the bridal market where they compete directly with natural diamonds.
Industry voices suggest that the trend is shifting back towards natural gems, with a renewed focus on their rarity, heritage and enduring value. Still, revitalising demand for natural diamonds will require coordinated efforts. Initiatives such as the Luanda Accord aim to support the natural diamond industry by establishing a collective marketing fund, with several diamond-producing nations pledging a portion of their annual revenue towards this campaign.
Although both natural and lab-grown diamonds have their own appeal, the decision often comes down to personal values. Lab-grown stones offer affordability and are often perceived as more ethical and environmentally friendly. Natural diamonds, on the other hand, hold stronger investment potential and are treasured for their unique formation over billions of years.