Lab-grown diamonds gain popularity and impact traditional diamond prices

Lab-grown diamonds have become increasingly popular due to their similarity to natural diamonds but at a fraction of the cost. Global sales of lab-grown diamonds reached $12 billion in 2022, showing a significant 38% increase. Mainstream jewelry retailers, including K jewelers and Pandora, have started selling lab-grown diamonds as well. However, lab-grown diamonds do not appreciate in value and are sold at an 80% discount compared to natural diamonds, up from a 20% discount five years ago. As a result, natural diamond prices have dropped by 18% from their peak, and this trend is expected to continue as lab-grown diamonds become more prevalent.