The diamond market is currently changing in a way never seen before. We’re seeing that mined and lab-grown diamonds are drastically dropping in price. According to an article from The Guardian, 1 carat lab-grown diamond cost on average €2.991,23 in 2020, compared to €802,80 in December 2024. That is a decrease of 74% in less than 5 years. The price for mined diamonds has decreased by 27% in the same span of time.
What is causing this disruption and what does it mean for the future of diamonds and the industry?
A Market Built on Perceived Scarcity
Companies like De Beers built an empire by convincing customers that diamonds are rare and a symbol of wealth, status and eternal love. The De Beers monopoly is shrinking with each year and the customer awareness about the truth behind the lies is growing. Diamonds are not scarce and not needed to express love.
The rise of lab-grown diamonds is a key factor behind the price decline of mined diamonds. The chemical composition and appearance are exactly the same, the only difference is where the diamond comes from. So why purchase a natural diamond, if you can have the same for a fraction of the price and without having to feel guilty about its origin? Another factor is that in recent years, the technology to produce lab-grown diamonds has advanced significantly. While a few years ago it would still take weeks to grow a diamond in the lab, it can now be done within a few hours.
Changing Consumer Preferences
Millennials and Gen Z are now the primary drivers of the diamond market and are more and more looking for ethically sourced products. Many of us grew up watching Blood Diamond with Leonardo DiCaprio and becoming aware of the appalling human rights issues connected to mined diamonds. Therefore, lab-grown diamonds have become a great alternative for customers.
In fact, around 45% of engagement rings now feature lab-grown diamonds, a percentage that is expected to rise even more in the coming years. As more people become aware of the realities of the diamond industry, they are opting for alternatives that align with their values and budget.
The Future of the Diamond Industry
What does this all mean for the traditional diamond industry? While it’s clear that lab-grown diamonds are here to stay, the market for natural diamonds won’t disappear entirely. Some consumers will always prefer the “natural origin” and prestige of a mined diamond. However, as the prices of natural diamonds continue to fall, the gap between lab-grown and natural diamonds might continue to narrow.
At Hardtwein, we’ve chosen to work exclusively with lab-grown diamonds to ensure our jewelry is both ethically sourced and reasonably priced. For those looking for an even more budget-friendly option, we also offer select styles with moissanite stones.
