A new research report from jewellery and watch insurer BriteCo has revealed that lab-grown diamonds accounted for more than 45% of engagement ring purchases in the US by 2024.
The findings are based on BriteCo’s analysis of proprietary appraisal and insurance data gathered over the past five years.
The report, titled The Lab-Grown vs Natural Diamond Revolution: New Data Reveals Consumer Insights, Trends and Predictions, outlines changes in consumer behaviour and purchasing patterns as lab-grown diamonds gain market share against natural diamonds.
Pricing and Consumer Behaviour
BriteCo’s data indicates that by 2025, the average retail price of a 1-carat lab-grown diamond has fallen to $1,000 or less, compared to approximately $4,200 for a natural 1-carat diamond. The price differential is contributing to shifts in buying preferences, with consumers reportedly using cost savings to purchase larger or higher-quality stones.
According to the report, younger consumers are driving the uptake of lab-grown diamonds. Two-thirds of Gen Z engagement ring purchasers now opt for lab-grown options, with Millennials also playing a significant role in the trend.
Market Outlook and Industry Considerations
BriteCo CEO Dustin Lemick said: “This report clearly reveals how the retail jewelry industry is bifurcating. We are seeing that lab-grown diamonds are becoming an accessible, everyday luxury, while natural diamonds are repositioning as exclusive symbols of enduring value.”
The report also outlines several possible future market developments:
- Lab-grown diamond brand differentiation may blur, making it more of a commodity as natural diamond producers accelerate marketing efforts to justify higher values than lab-grown diamonds
- Because of affordability and quality, lab-grown diamonds could also emerge as a new class of everyday wear jewelry
- There will likely be a rise in demand for fancy colored lab-grown diamonds due to their lower cost and customizable production capabilities
Implications for Jewellers
The broader availability and lower cost of lab-grown diamonds may affect jewellers’ inventory planning, pricing models and customer engagement strategies. Natural diamonds may increasingly occupy a more defined segment of the market.
Lab-grown diamonds may see increased use in everyday jewellery lines due to cost benefits and consistent manufacturing quality.
The full 18-page report is available at: brite.co/the-lab-grown-vs-natural-diamond-report
