How China’s Demand Shift Crashed Lab-Grown Diamond Prices
How Chinese Consumers Crashed the Lab-Grown Diamond Market (2025)
A sharp rise in supply, a slowdown in weddings, and a cultural pivot toward gold turned a boom into a reset. Here’s what the price drop means for shoppers—and the future of engagement rings.
Watch: The Story Behind the Crash
The Rise (2018–2022)
- Lab diamonds = chemically, visually, structurally identical to mined stones.
- Brands from Pandora to De Beers (Lightbox) embraced lab stones.
- By 2023, lab gems reached ~10% of global diamond jewelry sales.
The Breakpoint: Supply Floods, Demand Cools
Supply China became the top producer (Henan alone: ~1M carats/yr), with India’s cutting hubs scaling. Rough supply expanded faster than buyers could absorb it.
Demand In China, marriages halved (13M → 6.8M from 2013 to 2022), youth unemployment rose, and a real-estate crunch hurt savings—fewer proposals, fewer rings.
Culture Social sentiment tilted toward gold as a safe store of value; some online discourse labeled expensive mined diamonds an “IQ tax.”
Price Impact (What Shoppers Felt)
- Lab-grown rough: down ~85%. Retail: down ~80%.
- Example: a 1 ct lab diamond that sold for ~$3,000 (2022) dropped to <$900 (late 2024).
- Today: lab stones often sell for 10–15% of natural prices for comparable 4Cs.
- Resale: many jewelers won’t buy back lab stones due to fast-moving wholesale pricing.
So… Are Lab Diamonds “Over”?
Not at all. The market is normalizing. Expect two clear lanes:
- Everyday luxury (Lab): larger carat sizes, ethical sourcing, brilliant looks at accessible prices.
- Rarity/Tradition (Natural): purchased for perceived scarcity and legacy value.
For most couples, the decision is now about values and budget, not sparkle—because both options are visually identical to the eye.
Buyer Playbook (2025)
- Buy for love, not resale. Treat lab diamonds like high-end tech luxury—stunning, ethical, great value.
- Max your 4Cs. With lower prices, upgrade carat/clarity or invest in a premium setting.
- Insist on certification. Choose IGI or GIA-graded stones and buy from reputable retailers. Certification ensures the 4Cs and growth method are accurately reported.
- Consider gold’s moment. Yellow gold and mixed-metal settings are trending strongly in China and the West.
Key Terms & Topics
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References & Resources
- International Gemological Institute (IGI) — Global grading authority for lab-grown and natural diamonds.
- Gemological Institute of America (GIA) — Diamond grading standards, education, and research.
- How Chinese Consumers Crashed the Lab Grown Diamond Market (YouTube) — Video reference summarized in this article.