If you've been keeping an eye on the diamond market lately (as one does), you may have noticed that lab grown diamond prices have fallen - quite dramatically, in fact. And if you're thinking about buying a lab grown diamond engagement ring or a piece of diamond jewellery, you're probably wondering: does this mean they're somehow less special?
Short answer: absolutely not.
Here at Ethica Diamonds, based in Newquay, Cornwall, we've been watching these market shifts closely. We're going to break it all down for you on what's happening, why it's happening, and why a falling price tag doesn't mean falling value. Quite the opposite, actually.
What's Actually Happening to Lab Grown Diamond Prices?
Let's look at the numbers, because they are rather spectacular.
When lab grown diamonds first hit the mainstream market around 2015, they were priced at roughly a 10% discount compared to mined diamonds. Fast forward to 2025, and that discount sits at around 83%. Yes, really.
Here's a snapshot of what a 1-carat diamond cost at different points in time:
- 2019 - Mined: £4,800 | Lab Grown: £2,400
- 2022 - Mined: £4,650 | Lab Grown: £1,000
- 2024 - Mined: £3,840 | Lab Grown: £600
And for context on a 2-carat stone (the size that really makes people gasp at a dinner party):
- Mined diamond: approximately £19,200
- Lab grown diamond: approximately £4,100
Same stone. Same sparkle. Very different price. The savings are, frankly, hard to argue with.
(Prices sourced from market data, February 2025. Prices vary based on cut, colour, and clarity.)
Courtesy www.paulzimnisky.com
So Why Are Lab Grown Diamond Prices Falling?
There are a few key reasons, and none of them are cause for concern.
1. Production Has Become Faster and More Efficient
Mined diamonds take millions of years to form. Lab grown diamonds take a matter of weeks. As technology has improved, the process has become quicker, more reliable, and less costly to run and those savings get passed on.
Lab grown diamonds are created using two main methods:
- High Pressure High Temperature (HPHT) - mimics the conditions deep within the Earth, applying extreme pressure and heat to a carbon source.
- Chemical Vapour Deposition (CVD) - a carbon-rich gas crystallises onto a diamond seed in a controlled chamber, building up layers of diamond.
Both methods produce diamonds that are chemically, physically, and optically identical to mined diamonds. There's no compromise on quality, the process has simply become more refined.
2. More Producers Have Entered the Market
As demand for lab grown diamonds has grown, particularly for ethical engagement rings more producers have entered the space. More competition means more competitive pricing. Basic economics, but welcome economics when you're ring shopping.
3. The Bridal Market Is Driving Volume
The sharpest price drops are in the 1-2 carat range - precisely the sizes most popular for engagement rings. Producers have focused production here to meet demand, which has increased supply and driven prices down further.
4. Even De Beers Has Had to Respond
De Beers - the mining giant who spent decades convincing us all that 'a diamond is forever' has had to reduce prices on rough diamonds in response to the lab grown market. If that doesn't tell you something about the seismic shift happening in this industry, nothing will.
Does a Lower Price Mean Lower Value?
"The price of a lab grown diamond reflects its actual cost to produce - not an artificially inflated rarity myth."
This is the bit that matters. For decades, the mined diamond industry's pricing was built on a carefully constructed narrative of scarcity and exclusivity - much of it orchestrated through marketing rather than reality. Lab grown diamonds cut through that story entirely.
A lab grown diamond has exactly the same chemical composition, the same hardness (10 on the Mohs scale), the same refractive index, and the same dazzling sparkle as a mined diamond. A trained gemmologist cannot tell them apart with the naked eye. Even specialist equipment requires close examination.
So the price reflects true production cost. That's not a red flag - that's actually how pricing should work.
As the market matures and production costs stabilise, prices are expected to level out. The current drop is a market correction, not a sign that lab grown diamonds are somehow inferior.
But Are Lab Grown Diamonds Actually Ethical? (The Honest Answer)
We're going to be straight with you here, because we think you deserve that.
Lab grown diamonds are marketed heavily on their ethical and environmental credentials and for the most part, that reputation is earned. There are no conflict zones, no exploitative mining practices, no communities displaced for extraction. That's all true and genuinely important.
However, and this is worth knowing not all lab grown diamonds are created equally when it comes to energy use. Over 60% of lab grown diamonds are produced in India and China, where coal remains the primary source of electricity. Growing diamonds in a lab requires significant energy, and if that energy comes from fossil fuels, the environmental benefit is more complicated than many retailers let on.
We're not saying this to put you off lab grown diamonds, we're saying it because we believe you should have the full picture. Research suggests that around 84% of the world's diamond-growing energy currently comes from fossil fuel sources. That figure is improving as more facilities switch to renewable energy, but it's not there yet across the board.
This is precisely why, at Ethica Diamonds in Newquay, we only work with suppliers who use renewable energy where possible or offset their carbon emissions. We don't just take their word for it, we do our due diligence, because that's what being a genuinely ethical brand means.
At Ethica Diamonds, all of our lab grown stones are certified by the IGI or GIA, and sourced from producers committed to renewable energy or verified carbon offsetting.
Why Consumers Are Choosing Lab Grown Diamonds More Than Ever
Especially among millennials and Gen Z, there's a growing awareness that the things we buy carry a story and people want that story to be one they're proud of. When you're choosing a diamond to mark something as significant as an engagement or a milestone birthday, it makes sense to think about where it came from.
Research backs this up:
- 71% of consumers say traceability is a significant factor in their jewellery purchasing decisions.
- 77.5% say they would pay more for a product they can trace from source to finished piece.
- 94% believe jewellery brands should be more transparent about their supply chains.
That's not a niche concern, that's the direction the whole market is moving.
The 4Cs Still Apply - Don't Let the Price Drop Distract You
Whether you're buying a lab grown or mined diamond, quality is still determined by the 4Cs: Cut, Colour, Clarity, and Carat weight. A lower average price across the market doesn't mean quality has dropped - it means you can now access better quality for less.
At Ethica Diamonds, every lab grown stone in our collection is independently certified by the GIA (Gemological Institute of America) or IGI (International Gemological Institute). This isn't an optional extra, it's a non-negotiable standard for us, because we want you to know exactly what you're getting.
Other factors that influence price include:
- Shape - round brilliant cuts remain the most sought-after and are priced accordingly. Fancy shapes like emerald or oval can offer exceptional value.
- Certification, always ask for this. If a retailer can't provide independent certification, walk away.
- Brand integrity, not all lab grown diamond brands are equal. Choose one that's transparent about sourcing, energy use, and quality standards.
What Does the Future Hold for Lab Grown Diamond Prices?
Industry experts predict that lab grown diamond prices will continue to fall in the short term before stabilising as the market matures and supply and demand find their equilibrium. There's also expected to be a consolidation in the market with brands that have real values and real transparency rising to the top, and those trading purely on price falling away.
For buyers, the window we're in right now is genuinely exciting. The quality is exceptional, the ethics are (when done properly) sound, and the price means you can invest in a larger, better-quality stone than you might have dreamed possible a decade ago.
Why Choose Ethica Diamonds for Your Lab Grown Diamond?
We're a small, independent brand based in Newquay, Cornwall and we think that matters. We're not a faceless online retailer shifting volume. We care about every piece we make and every customer who wears it.
Here's what you get with Ethica Diamonds:
- Lab grown diamonds certified by GIA or IGI - no exceptions.
- Stones sourced from producers using renewable energy or verified carbon offsetting.
- Jewellery crafted in recycled precious metals.
- Complete transparency about where your diamond comes from and how it was made.
- A brand with genuine values, not just a sustainability badge slapped on a website.
We also offer the Ethica Diamond® our own signature stone that offers a beautiful, ethical, and even more accessible alternative for those who want the look and feel of a diamond with an even lighter footprint.
Whether you're searching for a lab grown diamond engagement ring in Cornwall, or you've found us online from anywhere in the UK, we'd love to help you find something you'll treasure, with a clear conscience and a brilliant stone to show for it.
Rough lab grown diamond from HPHT process
Rough lab grown diamond from CVD process
The Bottom Line
Lab grown diamond prices have fallen dramatically and that's a good thing. It means more people can access beautiful, high-quality diamonds. It means the pricing is now based on reality rather than manufactured scarcity. And it means that if you've been waiting for the right moment to invest in a piece of diamond jewellery, that moment is very much now.
Just make sure you're buying from someone who actually knows their stuff, cares about ethics, and won't leave you with a certificate-free stone and a vague shrug when you ask where it came from.
We're right here in Newquay if you need us. 💎
Explore our lab grown diamond collection →
Browse engagement rings, diamond jewellery, and the Ethica Diamond® at ethicadiamonds.co.uk, or get in touch with our team directly, we're always happy to chat diamonds.
References:
- International Gem Society: Lab-Grown Diamonds FAQ
- Gemological Institute of America: Laboratory-Grown Diamonds (Diamonds Grown in a Lab)
- 4 Predictions for the Diamond Market in 2023 and Beyond: https://nationaljeweler.com/articles/11696-4-predictions-for-the-diamond-market-in-2023-and-beyond
- Falling diamond demand and DeBeers' Response: https://fortune.com/2023/09/03/diamond-demand-falling-lab-grown-stones-de-beers-cutting-cutting-prices/
