Lab grown diamonds are no longer just a passing trend—they are establishing themselves as a permanent part of the luxury jewelry market, with a promising future ahead.
As sustainability, ethical sourcing, and technological innovation take center stage, these diamonds are attracting more buyers and brands.
In this article, we examine the key trends, innovations, and growth opportunities shaping the lab grown diamond industry in 2025 and beyond.
The Growth of the Lab Grown Diamond Market
The global lab grown diamond market has expanded rapidly in recent years. According to Precedence Research, a market research firm, the market is projected to grow from approximately USD 29.73 billion in 2025 to nearly USD 97.85 billion by 2034, reflecting a CAGR of about 14.15%.
This rise is driven by several factors: increasing demand for sustainable jewelry, the value-for-money advantage of lab grown diamonds, the expansion of online retail channels, and broader adoption by jewelers and manufacturers. Millennials and Gen Z, in particular, are drawn to eco-friendly alternatives to natural diamonds, seeking both style and sustainability.
At the same time, some analysts point to headwinds such as pricing pressure, increased competition, the cost of consumer education, and challenges surrounding sustainability and ethical certifications.
Innovations Driving Lab Grown Diamond Technology
Technological innovation is the driving force behind the lab grown diamond industry. Currently, the two primary production methods are CVD (Chemical Vapor Deposition) and HPHT (High Pressure High Temperature).
Among them, CVD has gained wide adoption thanks to its ability to produce high-purity diamonds with greater control and scalability. For a deeper look at these production methods, see our detailed blog on Lab Grown Diamond Production Methods.
Looking ahead, key technology trends include:
- Automation & AI-Assisted Monitoring: Using machine learning and image recognition to track diamond growth in real-time and detect flaws.
- Fancy Colored Diamonds: Introducing trace elements such as boron, nitrogen, or silicon has made pink, blue, and champagne diamonds more accessible.
- Energy Efficiency & Green Production: Developing more sustainable growth chambers and cooling systems to reduce carbon emissions.
- Larger Carat Expansion: Advances in production are making larger diamonds more achievable, boosting their presence in high jewelry.
Sustainability and Ethical Appeal: A Major Trend
One of the strongest selling points of lab grown diamonds is their ethical and eco-friendly reputation. Unlike mined diamonds, which can be associated with environmental disruption, labor exploitation, and high carbon footprints, lab grown diamonds offer a controlled and transparent alternative.
This resonates strongly with younger generations, especially millennials and Gen Z, who value sustainable lifestyles and demand traceability. Brands that provide transparency around energy use, certifications, and production processes will build stronger trust with consumers.
Lab Grown Diamonds and Evolving Consumer Preferences
Consumer preferences are shifting, and lab grown diamonds are now embraced well beyond engagement rings. Millennials and Gen Z are leading this trend, choosing pieces for everyday elegance, stacking, and gifting.
At Elora, our lab grown diamond jewelry is designed for everyday elegance—delicate stackable rings, versatile pendants, and earrings that are perfect for layering, mixing, and matching to suit any outfit or occasion. Many customers also choose them as thoughtful gifts, symbolizing love, celebration, or simply a special treat.
Pricing has played a major role in this transition. Lab grown diamonds often cost one-fifth to one-tenth of mined stones, giving buyers the freedom to select larger carat sizes, higher clarity, or more intricate settings.
Today’s consumers seek more than the stone itself—they value personalization, storytelling, and service. Brands that provide customization options, care programs, or trade-in policies are gaining an edge, and Elora delivers helping customers create jewelry pieces that are uniquely theirs.
Challenges and Opportunities in the Lab Grown Diamond Market
Despite strong prospects, the lab grown diamond market faces challenges:
Price Pressure & Margin Compression: As production costs fall and supply rises, retail prices may continue to drop, squeezing brand profitability.
Certification & Standardization: Industry-wide standards are needed to ensure authenticity and build consumer trust. Learn more about lab grown diamond certification in our blog on IGI Certificates for Lab Grown Diamonds.
Limited Resale Market: Unlike mined diamonds, lab grown diamonds currently have less-developed resale and secondary market value.
Brand Differentiation: In a crowded market, storytelling and design are essential.
Regulation & Sustainability Scrutiny: Governments may enforce stricter rules on energy usage and carbon disclosures.
On the other hand, opportunities are abundant: expanding into earrings, bracelets, and fancy colored diamonds, entering new geographic markets, and exploring new service models such as subscriptions, maintenance programs, or trade-in policies.
The Impact of Lab Grown Diamonds on the Traditional Jewelry Industry
The rise of lab grown diamonds has disrupted the traditional jewelry sector while also opening new doors. Many legacy jewelers and mining companies are now launching their own lab grown diamond collections or repositioning them as “entry-level luxury.”
The distinction between mined and lab grown diamonds is becoming less central to consumers. Today, design, craftsmanship, value, and brand experience weigh more heavily in purchasing decisions.
What’s Next for Lab Grown Diamonds in 2025 and Beyond?
Looking to the future, several themes are expected to shape the market:
- Smart Production & AI-Driven Design: Data-driven insights will inspire more appealing designs.
- Stronger Sustainability Certifications: Transparency across supply chains will become standard.
- Experiential Retail: Combining online convenience with in-store customization and immersive experiences.
- Fancy Colored Diamonds & Mixed Materials: Creative use of colored lab grown diamonds paired with metals or gemstones.
- Buyback Programs & Resale Markets: Establishing more robust resale systems could address consumer concerns about long-term value.
Conclusion
Lab grown diamonds are evolving from niche to mainstream, propelled by innovation, affordability, sustainability, and shifting consumer expectations. For brands, success lies not only in pricing but also in delivering craftsmanship, service, and compelling narratives.
At Elora, we are proud to be part of this transformation.
Our lab grown diamond rings and fine jewelry are designed to combine timeless beauty with modern values. Explore our Engagement Ring Collection or discover our Fancy Colored Diamonds for a glimpse into the future of jewelry.