Is the Lab Grown Diamond Market Still Growing?
Yes by volume and share. No by price per carat. The two moving in opposite directions is what makes the question hard to answer, and this is the short version.
The author is the founder of Draco Diamond, a Canadian lab grown diamond brand. Every figure below is sourced and dated in the References section. Prices quoted in USD are marked as such.
Is the lab grown diamond market still growing in 2026?
Yes. More lab grown diamonds are sold each year, and lab grown takes a larger share of the diamond market each year. Lab grown now accounts for more than 45 percent of US engagement rings on 2025 to 2026 industry data. That is the growth number.
The confusion comes from a second number moving the other way. Wholesale lab grown prices fell roughly 74 percent between 2020 and 2025 on Edahn Golan Diamond Research data. Report a category by dollars per carat and it looks like a collapse. Report the same category by units and share and it looks like an ascent. Both readings are accurate. They measure different things.
Why does the market look like it is growing and shrinking?
Because volume and value are separate measurements. Unit sales rise while the price of each unit falls. That combination is normal in any manufactured category that reaches scale.
| Measure | Direction | Evidence |
|---|---|---|
| Units sold | Up | Lab grown passed 45 percent of US engagement rings, 2025 to 2026 industry data |
| Category share | Up | From niche to plurality of the engagement ring category in under a decade |
| Retail availability | Up | Lab grown carried across mainstream and direct to consumer retail |
| Price per carat | Down | Roughly 74 percent lower 2020 to 2025, Edahn Golan Diamond Research |
| Wholesale jewelry prices | Down | About 90 percent lower, tracking toward cost plus, De Beers |
| Rate of price decline | Slowing | 2.59 percent year over year, smallest quarterly declines in two years |
A market measured in dollars per carat can decline while the same market measured in stones on hands grows every quarter. Anyone answering the growth question with a single number has picked one measure and dropped the other.
"A category can sell more stones every year and still shrink in dollars per carat. Growth and price are not the same question."
Garrett McMartin, Founder, Draco Diamond
What does the price floor mean for the growth curve?
It means the value side of the market is stabilising. Premium certified stones have reached a production cost floor, and the year over year decline has narrowed to 2.59 percent, the smallest quarterly declines in two years.
Price per carat, 2020 anchor versus May 2026
USD per carat. The 2020 figure is the 1 carat average. The 2026 figures are StoneAlgo averages by size, May 2026.
USD per carat. 2020 anchor 3,410 USD at 1 carat. StoneAlgo May 2026 averages by size.
A floor changes what growth looks like from here. While prices were halving, unit growth and price decline cancelled out in the headline dollar figures. With the decline near flat, unit growth starts showing up in category value again. That is a projection, not a measured outcome, and it holds only while production costs hold. Read the detail in the 2026 lab diamond price floor analysis.
If the market is growing, why did De Beers exit lab grown jewelry?
Because margin collapsed, not demand. De Beers announced the closure of Lightbox on May 9 2025, after saying lab grown wholesale jewelry prices had fallen about 90 percent and were tracking toward cost plus. Lightbox launched at 800 USD per carat. That price stopped being defensible.
The parent company context matters. Anglo American wrote down De Beers by 6.8 billion USD over three years, De Beers posted a 511 million USD EBITDA loss in 2025, and Anglo has targeted a sale or spinoff in the first half of 2026. A producer built on scarcity pricing cannot profit in a category priced at cost plus. Leaving was a margin decision. The category kept growing without it. The full account is in the Lightbox autopsy and the De Beers collapse report.
How should a buyer read a growing market with falling prices?
Treat the growth number as evidence the category is permanent, and the price number as evidence of what you should pay today. They answer different buying questions.
Growth in share means supply, service and certification infrastructure are not going away. A stone bought in 2026 sits in a category that is mainstream, not experimental. Falling prices mean the correct budget question is what a carat costs this quarter, not what it cost when a friend bought in 2022. A buyer who anchors on old prices overpays by a wide margin.
The price floor also changes the waiting calculation. With declines at 2.59 percent year over year, waiting a year to save on a certified stone is no longer meaningful arithmetic. Buy on certification and cut quality, not on a forecast. Draco grades every stone IGI certified, E to F color, VS2 and better, and is rated 4.8 out of 5 across 865 verified reviews. The category level data sits in the 2026 lab grown diamond statistics report.
Lab grown diamond market growth FAQ
Is the lab grown diamond market still growing?
Yes in unit volume and market share, no in price per carat. Lab grown accounts for more than 45 percent of US engagement rings on 2025 to 2026 industry data. Over the same period, per carat prices fell roughly 74 percent between 2020 and 2025. Growing adoption and falling prices are happening simultaneously.
Are lab grown diamond prices still falling in 2026?
Barely. The year over year decline is 2.59 percent, the smallest quarterly declines in two years. Premium certified stones have hit a production cost floor. StoneAlgo put the May 2026 averages at 564 USD per carat at 1 carat, 1,265 USD at 2 carat, 1,865 USD at 3 carat and 2,588 USD at 5 carat, against a 3,410 USD per carat average at 1 carat in 2020.
Does De Beers exiting lab grown mean the market is dying?
No. De Beers announced the Lightbox closure on May 9 2025 because margin collapsed, not because buyers stopped buying. De Beers itself said lab grown wholesale jewelry prices fell about 90 percent and were tracking toward cost plus. A producer built on scarcity pricing cannot earn in a cost plus category. Adoption continued rising after the exit.
Will lab grown diamonds keep taking share from natural diamonds?
The direction of travel to date is clear, and any statement about the future is a projection rather than a measured fact. What is measured: lab grown passed 45 percent of US engagement rings, and Anglo American wrote down De Beers by 6.8 billion USD over three years while targeting a sale or spinoff in the first half of 2026.
Should I wait for lab grown diamond prices to fall further?
Waiting no longer produces meaningful savings on certified goods. With prices down 2.59 percent year over year and premium certified stones at a production cost floor, a year of waiting is worth a small percentage at best. Buy on certification, cut quality and current per carat pricing rather than on a forecast.
Why do some reports say the lab grown market is shrinking?
Because they measure value per carat instead of units. Dollars per carat fell roughly 74 percent from 2020 to 2025, so a report using that measure shows contraction. A report using units sold or category share shows expansion. Both describe the same market from different angles.
References
- Edahn Golan Diamond Research. Wholesale lab grown diamond price decline, roughly 74 percent 2020 to 2025. Accessed July 2026.
- StoneAlgo. Lab grown diamond price averages by carat weight, May 2026. Year over year decline 2.59 percent.
- De Beers Group. Lightbox closure announcement, May 9 2025, and statements on lab grown wholesale jewelry pricing. Reported by Forbes, May 2025.
- Anglo American and De Beers financial disclosures. 6.8 billion USD writedown over three years, 511 million USD EBITDA loss in 2025, targeted sale or spinoff first half 2026. Reported by Robb Report and WWD, 2026.
- Industry engagement ring category data, 2025 to 2026. Lab grown share of US engagement rings above 45 percent.
- Draco Diamond Price Trend Report 2020 to 2026, dracodiamond.com. Accessed July 2026.
Buy at this quarter's per carat price
Every Draco piece is IGI certified E to F color VS2 and better, priced direct against current per carat data rather than legacy retail structure. 30 day returns, Lifetime Authenticity Guarantee, free ring resizing, free insured worldwide shipping to 25 markets, signature on delivery, IGI certified E to F color VS2 and better.
