Lab-Grown Diamond Market to Reach US$ 56.94 Billion by 2032 Driven by Sustainable Luxury Demand, CVD Technology Adoption, and Rising Preference Among Millennials and Gen Z | Astute Analytica

The global lab-grown diamond market is experiencing rapid expansion, driven by a shift toward sustainable luxury, with high growth in the fashion and jewelry sectors, as well as emerging high-tech applications in semiconductors and quantum computing.

Chicago, Feb. 06, 2026 (GLOBE NEWSWIRE) -- According to recent data from Astute Analytica, the global lab-grown diamond market is expected to reach the size of US$ 56.94 billion by 2032 from US$ 22.66 billion in 2023 by registering a CAGR of 10.78% over the forecast period 2024-2032.

The increasing demand for lab-grown diamonds is fueled by several compelling factors, with affordability standing out as one of the most influential drivers. Compared to natural diamonds, lab-grown diamonds are generally priced 30-40% lower, making them a more accessible option for consumers who are budget-conscious but still desire the allure and quality of diamond jewelry.

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This affordability has directly contributed to a dramatic surge in sales within the lab-grown diamond market. From being a relatively niche segment valued at under $1 billion in 2016, the market expanded rapidly to nearly $12 billion by 2022. This exponential growth highlights how price sensitivity among consumers has driven widespread adoption of lab-grown diamonds.

Additionally, pricing trends continue to support demand growth. For instance, the price of a 1-carat lab-grown diamond declined to $1,450 in the first quarter of 2023, making these diamonds even more attractive to a broader audience. This downward price movement not only reinforces lab-grown diamonds as a cost-effective choice but also encourages consumers to consider them as a viable and desirable alternative to traditional mined stones.

Eco-Friendliness as a Key Driver in the Lab-Grown Diamond Market

Eco-friendliness has become a crucial factor propelling the rapid expansion of the lab-grown diamond market. Traditional diamond mining is widely recognized for its substantial environmental impact, involving extensive land disruption, resource depletion, and energy-intensive extraction processes. These activities often lead to habitat destruction, water pollution, and significant carbon emissions, raising concerns among environmentally conscious consumers and advocacy groups alike.

In contrast, lab-grown diamonds are produced through controlled technological processes that eliminate the need for mining. By creating diamonds in a lab environment, manufacturers drastically reduce the environmental footprint associated with diamond production. This sustainable approach not only minimizes land disturbance and water use but also significantly lowers greenhouse gas emissions compared to traditional mining operations. As a result, lab-grown diamonds present an eco-friendly alternative that aligns with the values of a growing segment of consumers who prioritize sustainability in their purchasing decisions.

This increasing consumer preference for environmentally responsible products is a major contributor to the lab-grown diamond market’s accelerated growth. Buyers today are more informed and mindful of the ecological implications of their purchases, actively seeking products that support environmental stewardship. Lab-grown diamonds meet this demand by offering a high-quality, ethical, and sustainable option that satisfies both aesthetic desires and environmental concerns.

Chemical Vapor Deposition (CVD) Leading with Rapid Growth in the Lab-Grown Diamond Market

Chemical Vapor Deposition (CVD) has emerged as the standout technology within the global lab-grown diamond market, exhibiting the highest growth rate among production methods. In 2023, the CVD segment captured a commanding 57.4% share of the market, underscoring its dominant position and widespread adoption by manufacturers worldwide. This rapid growth reflects the method’s significant advantages in producing high-quality diamonds efficiently and reliably.

The CVD process involves introducing hydrocarbon gas and hydrogen into a vacuum chamber, where these gases are ionized to create a plasma. Carbon atoms from the plasma then deposit onto a substrate, gradually forming diamond crystals layer by layer. This controlled environment allows for precise manipulation of growth conditions, resulting in diamonds with exceptional purity and structural quality.

One of the key reasons CVD has become the preferred choice among many manufacturers is its ability to deliver consistent, high-purity diamonds suited for various applications, from jewelry to industrial uses. The process’s scalability also contributes to cost efficiency, enabling producers to meet the growing demand in both luxury and mass markets. Additionally, CVD technology allows for customization of diamond properties, such as size and color, further expanding its versatility.

Robust Growth in the Fashion Segment of the Global Lab-Grown Diamond Market

The fashion segment within the global lab-grown diamond market continues to experience robust growth, with projections indicating a significant rise to an estimated value of US$ 32.73 billion by 2030. This impressive surge is largely propelled by the increasing popularity of lab-grown diamonds among younger generations, particularly millennials and Gen Z consumers.

Millennials and Gen Z buyers are driving demand for lab-grown diamonds because these products align closely with their desire to make conscientious purchasing decisions. Unlike traditional natural diamonds, lab-grown diamonds offer greater transparency in terms of origin and environmental impact, making them a preferred choice for consumers concerned about the ethical implications of mining practices. As of 2023, market research shows that approximately 70% of millennials and 80% of Gen Z buyers favor lab-grown diamonds over their natural counterparts.

The fashion segment’s growth is further supported by the increasing integration of lab-grown diamonds into trendy, accessible jewelry designs that appeal to younger consumers. Brands are leveraging the appeal of these diamonds to create stylish, affordable pieces that resonate with the values and aesthetics of millennials and Gen Z. This shift not only elevates the prominence of lab-grown diamonds in the fashion world but also underscores a broader transformation in consumer behavior, where ethical considerations and sustainability are paramount.

Asia Pacific Leading the Global Lab-Grown Diamond Market

Asia Pacific has established itself as the dominant region in the global lab-grown diamond market, capturing the largest market share of 44.1% in 2023. This leadership position is primarily driven by the region’s rapidly growing demand for diamond jewelry, particularly in major markets such as China and India. These countries have witnessed a surge in consumer interest in lab-grown diamonds as an attractive and ethical alternative to natural diamonds, contributing significantly to the region’s market expansion.

One of the key factors fueling this demand is the rising disposable income among consumers in the Asia Pacific. As middle-class populations expand and purchasing power increases, more individuals are able to invest in luxury goods, including diamond jewelry. Alongside this economic uplift, changing lifestyle preferences—such as a growing emphasis on sustainability and ethical sourcing—have made lab-grown diamonds increasingly appealing. Consumers in the region are showing a preference for products that align with environmental and social responsibility, which lab-grown diamonds are well-positioned to satisfy.

In addition to strong consumer demand, the presence of numerous lab-grown diamond manufacturers within the Asia Pacific further accelerates market growth. These manufacturers benefit from established supply chain networks, advanced technological capabilities, and cost-effective production processes. Their strategic location within the region enables them to efficiently serve both local markets and export demands, reinforcing Asia Pacific’s role as a global hub for lab-grown diamond production.

Key Companies:

• ABD Diamonds
• Applied Diamond Inc.
• Clean Origin.
• De Beers Group
• Diam Concept
• Diamond Foundry Inc
• Henan Huanghe Whirlwind Co., Ltd.
• Mittal Diamonds
• New Diamond Technology LLC
• Sandvik Ab
• Swarovski Ag
• Tomei Diamond Co. Ltd

Market Segmentation:

By Manufacturing Method:

• HPHT
• CVD

By Size:

• < 0.10 Carats
• 0.25 – 2.5 Carats
• > 5 – 10 Carats

By Nature:

• Colorless
• Colored

By Application:

• Fashion
• Industrial

By Region

• North America
• Europe
• Asia Pacific 
• Middle East & Africa
• South America

For more information about this report visit: https://www.astuteanalytica.com/industry-report/lab-grown-diamond-market

About Astute Analytica

Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.

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CONTACT: Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/