Why Some Entrepreneurs Are Betting on Lab Grown Diamonds

Quick answer: Entrepreneurs are betting on lab-grown diamonds because demand keeps rising, with 61% of engagement rings bought by couples married in 2025 featuring a lab-grown center stone, and because margins have been high. The risk is that wholesale prices keep falling fast.

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

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.

Lab Grown Diamonds Are Reshaping the Engagement Ring Industry

With wedding season on the horizon, more couples are seeking beautiful, mining-free, and budget-friendly options for their engagement rings. Lab grown diamonds are increasingly the go-to choice. Produced with HPHT or CVD technology, these stones have essentially the same chemical, physical and optical properties as natural diamonds, at a fraction of the cost. In The Knot's 2026 Real Weddings Study, lab-grown center stones accounted for 61% of engagement ring purchases.

Entrepreneurs are capitalizing on this shift. Some jewelers who started out selling natural diamonds have switched to lab grown, drawn by that demand and by margins that JCK reported were as high as 80% to 90% for lab-grown versus 20% to 40% for generic natural diamonds. Their clients are drawn to the ability to design lab grown diamond rings with full control over cut, clarity, carat, and shape, all while staying within budget.

From elongated cushion cut lab grown diamonds to heart-shaped solitaires, today's lab-grown offerings reflect a shift in consumer priorities toward personalization and value. Lab grown options are no longer niche; they’re mainstream. With increasing numbers of buyers choosing to buy lab grown diamonds online, especially through platforms that offer independently graded lab diamonds, the trend is accelerating. As more retailers follow suit, the future of engagement jewelry may be built on custom lab grown engagement rings that balance innovation with timeless beauty.

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Frequently Asked Questions

Is selling lab grown diamonds profitable?

It has been. JCK reported retailer margins on lab-grown diamonds as high as 80% to 90%, compared with 20% to 40% for generic natural diamonds. The risk is that wholesale prices keep falling fast, down another 14% year over year in the first quarter of 2026, which can squeeze those margins.

Should a jeweler sell lab grown and natural diamonds together?

Analyst Paul Zimnisky says no. He told JCK that selling them side by side as if they were the same product can confuse customers, and suggested a store that sells natural diamonds open a separate store for lab-grown. Clear labeling and transparency matter either way.

How are lab grown diamonds made?

They are grown with one of two methods. HPHT recreates the high pressure and high temperature found deep in the earth, while CVD builds a diamond layer by layer from carbon gas on a seed crystal. Both produce diamonds with essentially the same properties as mined ones.

Can you customize a lab grown diamond engagement ring?

Yes. You can choose the diamond shape, carat, cut, color and clarity, then the setting and metal. Because lab-grown diamonds cost less, there is often room in the budget for a larger stone. At Future Jewelry, most pieces are made to order in solid white, yellow or rose gold, with some platinum options.

Are lab grown diamonds popular for engagement rings?

Yes, very. In The Knot's 2026 Real Weddings Study, lab-grown center stones accounted for 61% of engagement ring purchases among couples married in 2025. Price is the main driver, since lab-grown lets couples choose a larger diamond within the same budget.