Natural Diamond Prices Hit 20-Year Low as Lab-Grown Gems Disrupt Global Market

The global diamond market is currently facing significant pressure, with natural diamond prices falling to their lowest levels in nearly two decades. Wholesale prices have declined by around 30–40% from their 2021 peaks, amid weak demand, excess supply and growing competition from lab-grown diamonds. A one-carat natural round diamond is currently retailing at roughly $3,530 to $3,860. Lab-grown diamonds, which are chemically and physically comparable to natural diamonds, are available at around 70–85% lower prices. Their wholesale prices have fallen by more than 75% compared with 2022, while prices have declined nearly 29.9% since March 2025, compared with around a 4% decline for natural diamonds of similar quality.

China has emerged as a major producer of lab-grown diamonds, accounting for more than 60% of global production. Chinese exports of lab-grown diamonds reportedly rose 65.3% during the first six months of this year, adding further pressure to the market and hurting sales of mid-range natural diamonds. However, rare, high-quality and larger natural diamonds continue to retain their appeal and relative value because of their scarcity and individual characteristics. The price slump is also affecting the mining sector, including De Beers and Botswana's jointly operated Debswana. Industry observers are concerned that continued technological advances and rising production could further challenge the traditional value proposition of natural diamonds. Unlike commodities that are largely interchangeable, diamonds differ in cut, colour and clarity, all of which influence their value.