The global lab grown diamond market size was valued at USD 22.79 billion in 2023. The market is anticipated to expand from USD 25.89 billion in 2024 to USD 74.45 billion by 2032, registering a CAGR of 14.11% during the forecast period of 2024-2032.
Produced using Chemical Vapor Deposition (CVD) or High-Pressure High-Temperature (HPHT) methods, lab-grown diamonds are created within a few months, contrasting with the natural diamonds that take millions of years to form. These diamonds are manufactured through energy-efficient processes that consume minimal electricity—often sourced from renewables—and avoid harmful chemicals. Such eco-friendly attributes resonate strongly with environmentally conscious consumers, driving demand.
The industry experienced challenges during the COVID-19 pandemic due to lab closures and reduced production. Economic disruptions caused by widespread job losses further dampened the demand for non-essential products, including lab-grown diamonds.
This information is included in the research report by Fortune Business Insights™, titled “Lab Grown Diamond Market, 2024-2032.”
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Segmentation:
HPHT Segment Leads Owing to Preferred Manufacturing Method
Based on manufacturing methods, the market is categorized into CVD and HPHT. In 2023, the HPHT segment accounted for the largest market share. The HPHT method is favored for producing diamonds with enhanced clarity and color, closely resembling natural diamonds.
Up to 2 Carat Segment Drives Market Due to Affordability
In terms of size, the market is segmented into up to 2 carat, between 2 & 4 carat, and above 4 carat. The up to 2 carat segment leads the market, driven by its affordability and popularity in wedding and engagement rings. These diamonds are appreciated for their practical size and suitability for daily wear.
Colorless Diamonds Dominate Due to Quality and Versatility
By nature, the market is divided into colorless and colored diamonds. Colorless diamonds held the largest share in 2023, attributed to their high quality and value. Their versatile application across industries further supports this segment's growth.
Industrial Applications Dominate Due to Versatile Usage
Based on application, the market is bifurcated into industrial and fashion segments. The industrial segment dominated in 2023, fueled by the extensive use of lab-grown diamonds in electronics, semiconductors, and research. Their exceptional hardness makes them ideal for tools, machinery, and drilling applications.
Geographically, the market is divided into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Report Coverage:
The report provides an in-depth analysis of the global market, highlighting key aspects such as competition, manufacturing techniques, regional trends, market size, and applications. It also outlines significant industry developments and other factors propelling recent market growth.
Drivers and Restraints:
Increasing Demand for Lab-Grown Jewelry Boosts Growth
Lab-grown diamond jewelry presents an affordable alternative to natural diamonds, making it accessible to middle-income consumers. The availability of various options, such as rings, earrings, and necklaces, caters to diverse preferences, driving market expansion. Celebrity endorsements and efforts by key players like Limelight Diamonds and Syndiora to offer a broad range of products further boost adoption and global sales.
Challenges from Natural Diamonds and Other Gemstones
Despite their advantages, lab-grown diamonds face competition from natural diamonds and other precious gemstones such as sapphires and emeralds, which are valued for their superior aesthetic appeal and durability, restraining market growth.
Regional Insights:
Asia Pacific Leads Due to Robust Manufacturing Activities
Asia Pacific dominated the global market in 2023, supported by significant manufacturing capabilities in India and China, where high-quality lab-grown diamonds are extensively produced.
North America Secures Second Position
North America held the second-largest market share in 2023, driven by rising consumer disposable income and growing interest in lab-grown diamonds as an investment option. Additionally, the region's thriving electronics and automotive sectors are expected to stimulate demand further.
Competitive Landscape:
Focus on Expanding Product Offerings and Strategic Collaborations
Market leaders in the lab-grown diamond sector are expanding their product offerings to meet diverse consumer needs. Strategies include introducing various shapes, colors, and carat options, as well as educating consumers on the benefits of lab-grown diamonds. Collaborative efforts and store expansions are also enhancing market presence. For instance, in February 2024, Ayaani Diamonds inaugurated a new store in Bandra West, Mumbai.
Key Industry Development:
- April 2024: Solitario, an India-based lab-grown diamond company, launched its 15th store in Chennai, spanning 600 sq. ft., at Phoenix Marketcity.
List of Key Players Mentioned in the Report:
- Mini Diamonds (India)
- WD Lab Grown Diamonds (U.S.)
- De Beers Group (U.K.)
- Solitario (India)
- Adamas One Corp (U.S.)
- Diamond Foundry Inc. (U.S.)
- Element Six UK Ltd (U.K.)
- Henan Huanghe Whirlwind Co., Ltd (China)
- Diam Concept (France)
- ABD Diamonds (India)
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