Lab-Grown Diamond Jewelry Sales Hit $23.8 Billion

By JCK News Desk | November 03, 2026

Global retail sales of lab-grown diamond jewelry reached an estimated $23.8 billion in 2025, even as falling stone prices continued to reshape the economics of the business, according to a new report from diamond industry analyst Edahn Golan.

Working in collaboration with Eyal Axelrod of Lexa International, Golan reported Nov. 1 that global production of gem-quality lab-grown diamonds reached an estimated record 69.4 million carats last year, about 30% below the 98.8 million carats of natural rough mined.

Producing those lab-grown stones cost an estimated $753 million, or $10.85 per carat, and the rough was valued at $1.13 billion, or about $16 per carat. Natural rough, by comparison, averaged about $93 per carat at the mine.

The report identifies India as the largest producer of gem-quality lab-grown diamonds by volume in 2025, producing about 8% more carats than China, which previously had been considered the leader.

India also polishes virtually all of the world’s lab-grown diamonds, according to Golan. Cutting and polishing cost an estimated $1.23 billion last year, more than the $1.13 billion value of the rough itself.

Lab-grown wholesale prices continued to fall in 2025. Stones of 1 ct. and above declined 13% year over year in midstream trading, while 3 ct. stones dropped 47%. By the end of the year, Golan said wholesale prices across sizes had converged around $100 per carat in Surat and Mumbai, although the pace of price declines slowed during the year and has continued to moderate in 2026.

Golan found that most of a lab-grown diamond’s retail value is added close to the consumer. The lab-grown diamond content of finished jewelry was valued at $12.4 billion at retail, nearly three times what retailers paid for those stones, while total retail sales of the jewelry containing them reached $23.78 billion.

At U.S. specialty jewelers, demand for lab-grown stones increased even as average spending fell. Unit sales of lab-grown items rose 25% in 2025, while revenue increased 20%. Lab-grown–set jewelry represented 20.5% of diamond jewelry unit sales but 15.4% of revenue.

The category had an even larger presence in engagement rings, accounting for 53% of diamond engagement rings sold but only 27% of their sales value. Average spending on a lab-grown–set engagement ring fell nearly 8% to $2,448.

The report also identifies a potential concern for retailers: Their unit purchases of finished lab-grown jewelry increased 33%, versus a 25% rise in unit sales to consumers. Golan said that disparity points to an inventory buildup during 2025, leaving retailers holding merchandise that can lose value while wholesale prices are declining.

Falling prices did, however, allow engagement ring customers to purchase larger stones, with the average loose lab-grown diamond reaching 2.26 ct.

The United States remains by far the category’s largest consumer market, accounting for an estimated 73% of global demand in 2025, though that was down from more than 80% several years earlier. Golan attributed the declining share to growth elsewhere, particularly in China and India, which respectively represented 8% and 5.5% of global demand.

Looking ahead, Golan said lab-grown production could surpass natural diamond output by volume as early as 2027. But even if the two categories reach parity in carats, their values would remain dramatically different because lab-grown stones command only a fraction of natural diamond prices.

The report argues that as producing lab-grown stones becomes cheaper, more of the economic advantage is shifting toward businesses controlling cutting, distribution, retail access, or technical applications rather than companies focused solely on growing gem-quality stones.

The JCK News Desk uses AI to help research and produce the first draft of articles. This story was then reviewed by staff writer David Blomquist.

Top: Lightbox lab-grown factory (photo from JCK files/courtesy of Lightbox Jewelry)