Lab-grown diamond demand drops amid oversupply; consumers shift back to natural diamonds, says World Diamond Council president
Lab-grown diamonds are rapidly losing their shine as oversupply floods the market and prices plummet, prompting consumers to rediscover the allure of natural stones, according to World Diamond Council President Feriel Zerouki.
After reaching record highs in early 2022, natural diamond prices slumped in the second half of the year—largely due to the rising popularity of lab-grown gems, particularly among younger jewelry buyers.
However, the synthetic diamond boom is now faltering as production surges in China and India drive prices to new lows, undermining consumer confidence in lab-grown stones.
“If you look at the latest trends, lab-grown diamond prices are crashing. This is impacting consumer confidence in lab-growns,” Zerouki told Reuters during an interview at a mining conference in Luanda on Wednesday.
Diamond industry analyst Edahn Golan reported that the average wholesale prices of one-carat and two-carat lab-grown diamonds have fallen by as much as 96% since 2018.
Experts warn that if prices continue to drop, lab-grown diamonds may be perceived as inexpensive fashion accessories rather than luxury alternatives to natural gems—particularly in the crucial bridal market.
“I believe the lab-grown bubble has burst,” Zerouki added. “In fact, we’re seeing a shift within the trade, even at the retail level, back toward natural diamonds.”
Zerouki, who also serves as Vice President of Trading and Industry at diamond giant De Beers, emphasized that a rebound in natural diamond demand will not occur automatically.
It requires coordinated initiatives such as the Luanda Accord—an agreement among diamond-producing countries to collectively promote natural stones.
Under the Luanda Accord, nations including Angola, Botswana, the Democratic Republic of Congo, Namibia, and South Africa have pledged to allocate 1% of their annual diamond sales revenue toward a joint marketing fund to boost consumer awareness and appreciation for natural diamonds.
