Quick Facts
- Lab-grown diamonds now represent 45-52% of engagement rings sold in 2024, up from 2% in 2018
- Retail prices for one-carat lab-grown diamonds fell 76% to $855 in 2025, down from 2018 levels
- Jewelers earn record 70.8% gross margins on lab-grown diamonds during 2024 holiday season
Lab-grown diamonds captured half of the US engagement ring market in 2024, marking a dramatic shift from just 2% market share in 2018. The surge reflects changing consumer preferences and significant price advantages over natural stones.
The average lab-grown diamond engagement ring featured a 2.0-carat center stone in 2024, compared to 1.6 carats for natural diamonds. Overall engagement ring carat weights jumped from 1.5 in 2021 to 1.7 in 2024 as consumers opted for larger stones at similar price points.
Pricing drove much of the adoption. One-carat lab-grown diamonds retail for approximately $855 in 2025, representing a 76% decrease from 2018 prices. The stones can cost 60-85% less than natural diamonds of comparable quality.
“Design is absolutely the most important aspect of your purchase decision on a product—and the second criterion is price,” said Alexander Lacik, former CEO of jewelry brand Pandora. Buyers “are opting for spending the same or similar amount of money, but for a significantly larger stone.”
Consumer awareness reached 84% in a 2024 Rapaport survey, with 74% open to choosing lab-grown diamonds for engagement rings. Posts tagged #LabGrownDiamond more than doubled on TikTok in the first 10 months of 2024.
The shift benefits retailers financially. Jewelers earn up to 70% gross margins on lab-grown loose diamonds, up from 40-50% five years ago. Holiday season 2024 margins hit a record 70.8%.
The global lab-grown diamond market reached $27.2-29.73 billion in 2023-2025 and projects growth to $82.2-108.98 billion by 2032-2035. Lab-grown sales target $18 billion in 2024, representing a quarter of the $72 billion forecast for natural diamonds.
Industry leaders acknowledge the permanent market change. “The consumer has spoken; it’s an offering that’s not going away,” said Sherry Smith, director of business development at The Edge Retail Academy.
Major retailers adapted strategies accordingly. Signet Jewelers partnered with De Beers to position natural diamonds for bridal while promoting lab-grown stones for fashion jewelry.
The rapid growth pressures natural diamond prices. Industry executive Ankur Daga expects natural diamond prices to drop an additional 15-20% over the next year as lab-grown alternatives gain market share.
Scientific and regulatory bodies settled the “real or fake” debate years ago. The Federal Trade Commission recognized lab-grown diamonds as real in 2018. The Gemological Institute of America grades laboratory-grown diamonds and stopped using “synthetic” terminology in 2019.
Read more: Can Lab-Grown Diamonds Move Beyond the ‘Real or Fake’ Debate?
