The market for lab-grown diamonds (LGDs) is experiencing a significant global upswing in 2025, with the United Arab Emirates emerging as a crucial center for this expanding industry. This growth is primarily fueled by the increasing adoption among Generation Z consumers, who are attracted to the more accessible price points, ethical considerations, and contemporary appeal of LGDs.
The global LGD market, valued at approximately $27.24 billion in 2024, is on a trajectory for substantial expansion, with projections indicating a potential reach of $57.95 to $74.45 billion by the early 2030s. The DMCC Lab-Grown Diamond Symposium 2025, held in Dubai, served as a key platform for industry discussions on this trajectory. Experts noted that LGDs represent the fastest-growing segment within the jewelry sector, exhibiting double-digit year-over-year growth.
Peter Widmann of Swarovski Created Diamonds highlighted that Gen Z, now representing 60% of luxury consumers, is rapidly embracing LGDs, influenced heavily by social media. A primary driver for this trend is the considerable price difference compared to natural diamonds. Consumers recognize that LGDs offer the same material qualities—brilliance, durability, and beauty—at a more attainable cost, allowing for larger stones and more innovative designs, which appeals to a generation that values personalization and value.
The overall price of diamonds has seen a decline, from approximately $6,800 in 2022 to around $5,000 by the end of last year, a trend largely influenced by the LGD market.
Beyond affordability, ethical and environmental factors are increasingly shaping consumer choices. Growing awareness of the environmental impact and ethical concerns associated with traditional diamond mining positions LGDs as a more sustainable and conflict-free alternative. This resonates strongly with younger consumers who prioritize brands aligned with their values.
The UAE, through initiatives like the DMCC, is strategically positioning itself as a leader in the LGD trade. DMCC has facilitated the trade of over one billion carats in the past five years, with more than 30 LGD companies operating within its ecosystem, and annual trade through Dubai exceeded $1 billion last year. Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, stated that LGDs already account for almost half of the US engagement ring center stone market, and their popularity continues to grow in other regions. He also noted that natural and lab-grown diamonds can coexist, each serving different consumer desires and ultimately broadening the overall market.
The implications of this market shift extend beyond jewelry. LGDs are finding applications in high-tech sectors such as semiconductors and quantum computing, owing to their superior thermal conductivity and optical clarity. This diversification suggests a robust future for LGDs, moving them from a niche product to a versatile material with broad industrial and creative potential. The symposium underscored Dubai's unique position to integrate its luxury, industrial, and high-tech dimensions, further cementing its role as a global hub for critical dialogue and growth in the lab-grown diamond sector.