Would you wear a lab-grown diamond as your engagement ring? China fuels demand for cheaper artificial gems, as Gen Z shuns natural stones and designers like Monique Lhuillier embrace synthetic styles

Dec 22 , 2023

Would you accept a lab-grown diamond for your engagement ring? De Beers sees reduced demand for natural diamonds, while bridal designers like Monique Lhuillier are incorporating synthetic stones into their creations. Photos: Handout

Consumers with ethical and environmental concerns around the mining of natural diamonds are increasingly turning to synthetic diamonds grown in the lab – including when it comes to their wedding day

De Beers reports mined diamond prices are down a quarter this year – but lab-grown diamonds are also getting cheaper, fast, and are currently around 82 per cent cheaper than their natural counterparts

As the global search intensifies for luxury products that are more socially and environmentally conscious, the time is ripe for precious gems grown in the laboratory to take off.

The market for lab-created diamonds is expected to grow at 5 per cent per year from 2022 to 2030, led by China and the US, according to a recent report.

“The synthetic diamond industry has successfully tapped into markets where consumers are especially price sensitive, significantly affecting the US bridal market,” according to Research and Markets’ 2023 “Synthetic Diamonds – Global Strategic Business Report”. The publication notes that the market in China is expected to outperform with a predicted compound annual growth rate (CAGR) of 8.6 per cent – which could see it become a US$4.9 billion market by 2030.

“Among the other noteworthy geographic markets are Japan and Canada, forecast to grow at 1.9 per cent and 5 per cent, respectively, over the 2022-2030 period. Within Europe, Germany is forecast to grow at approximately 2.4 per cent CAGR,” the report adds.

According to different stakeholders and analysts, there has been a notable change in consumer values and tastes as the brilliant world of natural diamonds has declined, while the lab-grown diamonds market is on the rise.

Fred’s Force 10 high jewellery necklace, featuring the very first lab-grown blue diamond, the Audacious Blue

Barkev Meserlian, CEO at Barkev’s, says that sales of lab-grown diamonds are up like never before. “We’ve been in the jewellery business for over 40 years now, selling unique engagement rings through our designer brand Barkev’s. We’ve seen many trends throughout the years, but nothing like this,” he continues.

Over the last five years, the average price of diamonds that are mined has decreased, but at a slower pace than that of diamonds created in labs. The latest financial results from De Beers, the largest diamond trader in the world, show that the consolidated average realised price for mined diamonds in the first half of this year decreased by 23 per cent, from US$213 per carat in mid-2022 to US$163 per carat. De Beers is a South African-British corporation that operates mines in 35 countries.

“The demand for lab-grown diamonds is skyrocketing and young couples are shying away from natural diamonds for many reasons, including the price and the environment. This, I believe, is the reason why natural diamond prices are falling,” Barkev explains.

According to StoneAlgo, a diamond trading platform, lab-grown diamonds are now around 82 per cent cheaper than natural diamonds.

Over the past year, the price of lab-grown diamonds has fallen by around 45 per cent, while the price of natural diamonds has fallen by around 23 per cent, StoneAlgo elaborates.