Lab-Grown Diamonds and the 60% Drop in Natural Diamond Prices

Natural diamond prices have fallen about 60% over five years, from a peak of roughly $10,000 per carat in March 2022, as lab-grown alternatives gain market share at a fraction of the cost. The shift is reshaping the traditional diamond market and raising questions about the industry’s future.

■ Market shift and pricing
- Natural diamond prices declined about 60% over five years from the March 2022 peak
- Lab-grown diamonds have expanded rapidly due to lower cost and growing popularity

■ Lab-grown diamond production
- Small diamond seeds are placed in a vacuum chamber with carbon-rich gases
- Controlled heat and pressure grow the stone layer by layer before cutting and polishing
- Lab-grown diamonds have the same chemical and physical properties as natural diamonds

■ Industry pressures
- Geopolitical uncertainty, polished diamond inventory surplus, and higher tariffs on Indian diamond imports affect major industry players
- Russia’s state-owned Alrosa, about 30% of global production, reported lower output between 2023 and 2025

■ Consumer behavior
- Lab-grown stones sell at much lower prices than natural diamonds
- In 2026, lab-grown stones including diamonds accounted for 61% of US engagement ring sales, up 239% since 2020

Viewers interested in diamond market dynamics, lab-grown production technology, and changing consumer trends can gain a concise overview of the factors behind the price decline and market structure shift. The content supports understanding of current industry pressures and purchasing trends.