The Meteoric Rise of Lab-grown Diamonds

Lab-grown diamonds are providing stiff competition to natural diamonds due to numerous reasons, ranging from cost affordability to the adoption of ethical practices. While natural diamonds still maintain their uniqueness and exclusivity, in order to cater to consumers who want the brightness of diamonds but are not willing to shell out an obscene amount of money, lab-grown diamonds serve as the perfect option for customers opting for ethical diamonds.

Lab-grown vs Natural Diamonds: A stark difference

Natural diamonds are facing an umpteen number of obstacles, ranging from cost effectiveness to sustainability issues.

Carbon footprint and water consumption comparison

Unchecked CO2 emissions have been a cause of concern for the natural diamond industry. On average, 1-carat natural diamond emits 125 kg of CO2, while a lab-grown diamond generates only 0.025 kg of CO2 per carat; a clear 99.98% decrease in carbon emissions as compared to the former showing that lab-grown diamond’s carbon footprint is lesser.

Water consumption of the two types of diamonds also has a stark difference. Lab-grown diamond utilizes 18.5 gallons per carat of diamond, but their naturally sourced counterpart uses up 128 gallons of water per carat during mining and excavation.

Energy drainage

Energy utilization of diamonds is a big concern in itself, as diamonds undergo tremendous modifications in order to make them suitable for jewellery applications. Lab-grown diamonds surpass natural diamonds in this aspect as well.

While lab-grown diamonds need only 36kWh per carat, their naturally sourced counterpart need approximately 80kWh, almost 50% more than lab-grown diamonds due to the enormous amount of energy required in mining processes.

Mining challenges: Lab-grown diamonds outperform natural diamonds

Mined Diamonds have always faced the ire of the global environmental and labour practices regulatory agencies regarding the concept of “blood diamonds”. Blood Diamonds account for approximately 15% of total diamond sales, which is alarming even after the Kimberly Process Certification that was kept in place in order to reduce the conflicts that arose with unethical concerns while mining.

Approximately 60% mined natural diamonds are sourced from countries that are undergoing political turmoil, thereby diminishing the accountability and authenticity of diamonds. Environmental risks associated with this are also rampant, as 55% of diamond mines are around biodiversity hotspots brimming with endangered wildlife species.

In Angola’s Catoca Mine, 1 ton of earth is removed per carat of diamond mined. The mine’s production value reaches approximately 5 million carats per year, which translates to 10 billion pounds of earth dug up, resulting in environmental issues arising in the underlying areas.

Lab-Grown Diamonds: Cost affordability is a major advantage

Lab-grown diamonds are increasingly resonating with people due to their cost-effectiveness, which has a major role to play in the retail price gap prevalent between natural and lab-grown diamonds.

Lab-grown diamonds generally cost 20% to 40% less than natural diamonds. On average, 1 carat of naturally sourced diamond costs around $7,700 while its synthetic counterpart is sold at 1/7th of the price. Chemical characteristics such as thermal conductivity, chemical makeup, and hardness are exactly the same. Mining expenses, which can go up to $60 a carat, are completely removed from capital expenditure.

Growth Trajectory of Lab-Grown Diamonds

Lab-grown diamonds have found an immense adoption rate due to their various advantages, ranging from scalability to leaving a lower impact on the environment. The lab-grown diamond industry has experienced steep growth, with market volume expanding from 2.5 million carats back in 2015 to a whopping 16 million carats in 2024, exhibiting a 6.4 times increase in a decade.

Annual growth rate of the industry exceeded 20% till 2023, when the market volume of lab-grown diamonds was 9.85 million carats in 2023, after which there was a 62% surge in market volume due to factors such as reproducibility, environmental sustainability, and supply chain streamlining.

Cost efficiency is another advantage associated with this industry, as prices fall by almost 20% which is favourable for the younger generation who are looking to purchase diamonds but not pay the exorbitant price associated with naturally sourced diamonds.

Conclusion

Lab-grown diamonds are reshaping the gem market by reducing pressure on unchecked mining as well as exorbitant prices associated with it. With physical and chemical characteristics similar to those of natural diamonds, the market growth of lab-grown diamonds is sure to increase in the coming years.