Lab-grown diamonds are facing a sharp decline in consumer appeal due to oversupply and falling prices. World Diamond Council President Feriel Zerouki says the synthetic gem market is losing momentum, prompting a renewed shift toward natural stones and sparking strategic recalibrations across the global diamond industry.
The diamond industry is witnessing a dramatic reversal in trends as lab-grown diamonds—once hailed as the ethical and affordable alternative—lose their shine. Speaking at a mining conference in Luanda, World Diamond Council President Feriel Zerouki confirmed that the synthetic diamond market is under pressure from oversupply, price collapse, and waning consumer confidence.
Key Highlights
- Wholesale prices for lab-grown diamonds have plummeted by up to 96% since 2018, driven by mass production in China and India
- The market saturation has eroded perceived value, especially among younger buyers who previously favored lab-grown gems for affordability and sustainability
- Zerouki stated, “The lab-grown bubble has burst,” noting a growing movement within the trade and retail sectors to return to natural diamonds
- Diamond-producing nations are pooling resources to launch a collective marketing fund aimed at promoting natural stones and restoring consumer trust
- The natural diamond industry itself has faced price slumps since mid-2022, but is now seeing renewed interest amid the synthetic sector’s downturn
- Retailers are re-evaluating inventory strategies, with some scaling back lab-grown offerings and reintroducing certified natural stones to meet shifting demand
This shift marks a pivotal moment for the global diamond trade, as ethical sourcing, long-term value, and emotional resonance reassert their influence over consumer choices. Industry players are now recalibrating their messaging and product lines to align with evolving market sentiment.
Sources: Economic Times, MiningMX, NDTV