The Lab Grown Diamond Market Is Shifting: What Retailers and Buyers Need to Know

Quick answer: Analyst Paul Zimnisky says lab-grown diamond demand was driven more by retailer margins than by consumers, and wholesale prices have collapsed as production got cheaper. His advice to retailers is to sell lab-grown and natural diamonds separately and be transparent with buyers.

For years, the story around lab grown diamonds has focused on innovation, mining-free production, and affordability. But according to diamond industry analyst Paul Zimnisky, speaking to JCK in March 2025, the narrative about lab-grown diamonds is changing. Lab grown diamonds have become incredibly popular, but rapid price drops and changing retail strategies could signal deeper concerns for the industry.


Zimnisky points out that demand for lab diamonds hasn't stemmed from consumers, but from retailers attracted to margins as high as 80% to 90%, compared with 20% to 40% for generic natural diamonds. Production keeps getting cheaper: on a trip to India, Zimnisky learned of producers making diamonds for less than $10 per rough carat, and their value perception has eroded. While it's now easy to buy man made diamonds online or source loose lab grown diamonds wholesale, the glut of inventory is putting pressure on pricing. JCK reported that wholesale lab-grown prices are down 90% to 95% compared with 2015, and in 2026 that they fell another 14% year over year in the first quarter. Wholesale lab created diamonds, once seen as a lucrative segment, now raise concerns about long-term pricing.


The challenge, according to Zimnisky, is differentiation. Selling lab grown and mined diamonds side by side as if they were the same product can confuse customers. His suggestion? Sell one or the other: if a store has traditionally sold natural diamonds and wants to sell lab-grown, it should open another store and keep the two separate. With online sellers pushing accessibility and price, the conversation must shift to product transparency, design innovation, and consumer education. As the diamond market continues to evolve, brands that clearly define their offerings, whether it's independently graded lab grown diamonds or custom lab grown diamond rings, will be the ones that maintain trust and value in an increasingly competitive space.

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Frequently Asked Questions

Why are lab grown diamonds so inexpensive?

Because they have become very inexpensive to produce. Analyst Paul Zimnisky learned of producers in India making diamonds for less than $10 per rough carat, and JCK reported that wholesale lab-grown prices are down 90% to 95% compared with 2015, with another 14% drop in early 2026.

Will lab grown diamond prices keep falling?

Nobody can say for sure, but the trend has been down. JCK reported in 2026 that wholesale lab-grown prices fell another 14% year over year in the first quarter, after falling 90% to 95% from 2015. A glut of inventory continues to put pressure on pricing.

Are lab grown diamonds real diamonds?

Yes. Lab grown diamonds are made of carbon in the same crystal structure as mined diamonds, so they have the same hardness, 10 on the Mohs scale, and the same sparkle. The difference is origin: they are grown above ground with the HPHT or CVD method.

How can I tell if a diamond is lab grown before buying?

Ask for the independent grading report. Labs such as IGI and GIA state whether a diamond is laboratory-grown, and transparent sellers disclose it clearly in the listing. Analyst Paul Zimnisky says this kind of transparency is exactly what retailers need as the market changes.