Over the past few years, the diamond market has undergone a significant shift, particularly with the rapid rise of lab-grown diamonds. These diamonds, which are chemically and physically identical to natural diamonds, have captured the attention of consumers due to their affordability and ethical appeal. In fact, lab-grown diamonds now make up about 20% of global diamond jewelry demand, with sales continuing to grow at double-digit rates each year.
As lab-grown diamonds have gained popularity, natural diamond sales have felt the pressure. Prices for rough natural diamonds dropped by about 33% since their peak in 2022. This decline was driven not only by the increasing market share of lab-grown diamonds but also by shifting consumer preferences toward sustainable and conflict-free choices.
Despite this, the natural diamond market is poised for a recovery. Industry leaders, like De Beers, predict that the market will stabilize and even grow in the coming years. This recovery will be aided by a combination of factors, including tighter supply constraints from sanctions on Russian diamonds and renewed marketing efforts to emphasize the rarity and value of natural diamonds