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The once-surging market for lab-grown diamonds is showing clear signs of decline as oversupply drives down prices and erodes consumer confidence, according to World Diamond Council President Feriel Zerouki. Speaking at a mining conference in Luanda, Zerouki noted that the diamond industry is witnessing a significant shift, with more consumers beginning to favor natural stones once again.
After peaking in early 2022, natural diamond prices slumped sharply due to the rapid rise in popularity of lab-grown alternatives—particularly among younger jewelry buyers drawn to their lower prices and perceived sustainability. However, the flood of synthetic diamonds from major producers in China and India has now led to a dramatic price collapse, undermining the appeal of lab-grown gems. “If you look at the latest trends, lab-grown diamond prices are crashing. This is impacting consumer confidence in lab-grown,” Zerouki explained.
Industry analysts have echoed her concerns. Edahn Golan, a well-known diamond market expert, revealed that the average wholesale price of one- and two-carat lab-grown diamonds has dropped by up to 96% since 2018. Such a steep decline has raised fears that synthetic diamonds may soon lose their luxury status, becoming mass-market fashion accessories rather than competitors to natural diamonds—especially in the lucrative bridal segment.
Zerouki believes the “lab-grown diamond bubble has burst”, adding that there is a growing movement within the jewelry trade and at retail level to return to natural stones. However, she cautioned that a recovery in the natural diamond sector will not occur automatically. Instead, it requires coordinated global efforts, such as the newly introduced Luanda Accord—an initiative designed to reinvigorate demand for natural diamonds through collective marketing.
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Under this agreement, major diamond-producing nations including Angola, Botswana, the Democratic Republic of Congo, Namibia, and South Africa have pledged to allocate 1% of their annual diamond sales revenue to fund a global campaign promoting the enduring value and authenticity of natural diamonds.
Zerouki, who also serves as Vice President of Trading and Industry at De Beers, emphasized that such collaborative initiatives are vital to reestablishing consumer trust and ensuring the long-term sustainability of the natural diamond industry.
