Bridging the Divide: Creating Harmony Between Lab-Grown and Natural Diamonds

The debate between natural and lab-grown diamonds has polarized the industry, leaving many retailers, designers, and consumers wondering: "Which is the future?" As someone deeply entrenched in the gem and jewelry education space, my take is simple yet transformative: this isn't about competition but collaboration. When positioned rightly, both natural and lab-grown diamonds can thrive, bringing clarity to a conversation currently clouded by confusion.

Lab-Grown vs. Natural Diamonds: Why We’re Asking the Wrong Question

The diamond industry loves a good debate. And right now, there’s none hotter than the battle between lab-grown and natural diamonds. Some say lab-grown is the future. Others swear by the legacy of natural diamonds. Retailers, consumers, and even industry veterans are caught in the crossfire, trying to pick sides.

But let me ask you this: Are we even asking the right question?

Because this isn’t a war. This isn’t Coke vs. Pepsi. This isn’t VHS vs. DVD. The most sophisticated luxury markets don’t force direct competition; they create complementary product segments.

Think of:

Mechanical watches vs. smartwatches: Rolex and Apple both dominate, but they don’t compete.

Fine wine vs. craft spirits: Both represent luxury, but cater to different experiences.

Luxury cars vs. electric vehicles: Ferrari and Tesla live in the same ecosystem but serve entirely different emotional needs.

The lab grown diamond market is a fundamental shift in how we perceive value, storytelling, and market positioning. And the sooner we stop forcing a competition where there isn’t one, the sooner we can unlock the true potential of both.

Understanding the Shifting Landscape

Lab-grown diamonds aren’t just a passing trend; they’re a reflection of shifting consumer values. Today’s buyers are more discerning, seeking affordability, sustainability, and individuality. These diamonds cater beautifully to younger generations and first-time buyers, while natural diamonds continue to hold their ground as symbols of heritage, rarity, and investment value.

Let’s not forget the numbers:

• The market value of lab-grown diamonds amounted to more than 27.2 billion U.S. dollars in 2023. Lab-grown diamonds are expected to witness a significant increase in market value by 2032, to nearly 59.5 billion U.S. dollars. Statista
• Lab-grown diamonds are gaining an increasing share of the? global diamond market each year, with the market share expected to amount to over 21 percent in 2025. In 2023, lab-diamonds accounted for 14.3 percent of the worldwide diamond market. Statista
• The WedMeGood annual wedding industry report highlighted that 45% of the brides prefer lab-grown diamonds. Engagement rings are among the highly used ornaments that include lab-grown diamonds. NDTV Profit

These figures aren’t about lab-grown overtaking natural diamonds; they signal a growing acceptance and demand for diverse diamond categories.

Natural Diamonds: The Case for Legacy and Emotional Value

Natural diamonds are tied to history, rarity, and a deeply ingrained emotional narrative.

For centuries, they have represented:

• Milestones and memories: heirlooms passed down through generations.
• Economic value: a tangible asset class that, in certain categories, has held or even appreciated in worth.
• The essence of rarity: each stone taking millions of years to form, ensuring no two are exactly alike.

But here’s where the industry must recalibrate its thinking: Consumers today don’t buy “what” you sell; they buy “why” you sell it.

Natural diamonds cannot compete on price with lab-grown diamonds. That’s a losing battle. Instead, they must lean into their story, craftsmanship, and long-term significance.

The luxury market thrives not on necessity but on perceived value and natural diamonds must strengthen their positioning in this realm.

Lab-Grown Diamonds: The Case for Modern Luxury

Lab-grown diamonds are not a substitute for natural diamonds. They are an entirely different category of luxury, driven by innovation, sustainability, and accessibility.

Their rise reflects:

• A shift in consumer psychology: younger buyers prioritize ethics, affordability, and transparency.
• The democratization of luxury: where fine jewelry is no longer reserved for milestone purchases but becomes an everyday indulgence.
• Technological mastery: a diamond created in weeks, not millennia, yet chemically identical to its natural counterpart.

The key insight? Lab-grown diamonds are not disrupting natural diamonds. They are disrupting the way we define luxury.

The Fatal Mistake: Mispositioning Lab-Grown Diamonds

Let’s address the elephant in the room. The reason lab-grown diamonds create confusion is because the industry still markets them as a budget alternative to natural diamonds.

That’s the mistake. A lab-grown diamond isn’t a natural diamond’s inferior twin. It’s an entirely different product with a different value system, a different audience, and a different sales strategy.

Here’s what we need to understand:

• Natural diamonds are not expensive because they sparkle. They are expensive because they represent rarity, geological wonder, and heritage. Their value is deeply embedded in history, storytelling, and scarcity.

• Lab-grown diamonds are not appealing because they’re “cheaper.” They appeal because they align with modern consumer priorities; ethical sourcing, accessibility, and technological advancement.

When you try to sell lab-grown diamonds as a budget alternative to natural, you’re setting them up for failure. That’s why Lab-grown diamond prices continue to decline because the industry insists on placing them within the natural diamond value framework. Natural diamonds lose relevance among younger buyers because the messaging remains outdated.

Instead of forcing a competition that doesn’t need to exist, the industry must create clear, separate lanes for both.

The Case for Coexistence

So, how do we move beyond this divide? By focusing on what makes each diamond type unique and placing them in complementary, not conflicting, roles.

1. Education Is Key The industry owes consumers transparency and clarity. Why choose a natural diamond? For its timeless value and emotional significance. Why opt for a lab-grown diamond? For its ethical appeal and modern affordability. Empower consumers with knowledge, not sales pitches.

2. Strategic Positioning Think of natural diamonds as your luxury statement pieces; heirlooms with a story. Lab-grown diamonds, on the other hand, can be the accessible, fashion-forward choice. By curating collections that emphasize these distinct strengths, retailers can meet the needs of every shopper.

3. A Synergistic Retail Approach Retailers need to stop seeing this as an “either-or” situation. Carrying both natural and lab-grown diamonds isn’t just smart; it’s necessary. Consumers don’t want to be forced into a choice; they want options that align with their values and budgets. A well-rounded offering boosts trust and sales.

4. Collaboration Over Conflict This is a moment for the industry to unite. Lab-grown and natural diamond sectors should co-market, share research, and innovate together. Divisive tactics erode consumer trust, whereas collaborative storytelling elevates the diamond market as a whole.

The Indian Context: Leading by Example

India is at the heart of the global diamond story. For decades, the natural diamond trade has driven exports and provided jobs. But the rise of lab-grown diamonds, particularly among Gen Z and millennials, signals an undeniable shift.

The answer isn’t to resist lab-grown diamonds but to adapt. India’s retailers and manufacturers must embrace this dual narrative, leveraging the country’s legacy while tapping into emerging opportunities.

Tapping Into Emotional Selling

Here’s the truth: Diamonds, whether natural or lab-grown, are emotional purchases. They’re tied to love, achievement, and self-expression. The focus should shift from product differentiation to storytelling. Why not highlight how lab-grown diamonds bring sustainability to the modern love story or how natural diamonds carry a legacy of enduring romance?

When customers feel connected to a story, they’ll care less about the origin and more about the meaning.

The Path Forward

The future of the diamond industry isn’t binary. It’s inclusive, balanced, and rich with opportunity. By recognizing that lab-grown and natural diamonds each serve unique purposes, we can eliminate unnecessary confusion and create a thriving market.

The real tragedy isn’t that lab-grown diamonds exist. The tragedy is that the industry is so focused on “protecting” natural diamonds that it’s missing the opportunity to expand the market, create new buying occasions, and elevate lab-grown diamonds into a luxury category of their own.

Instead of playing defense, it’s time to play offense.This isn’t a battle. It’s an evolution.

And the industry leaders who recognize this first will be the ones who define the next era of diamond retail.

As leaders and educators, it’s our role to guide this conversation, not with bias but with vision. Let’s move the narrative from competition to coexistence, ensuring diamonds of all kinds have their rightful place in the evolving jewelry landscape. Because at the end of the day, the real sparkle isn’t just in the diamonds; it’s in how we choose to tell their story.

About the Author: Rahul Desai (MD & CEO, IIG)

Rahul Desai, CEO and MD of the International Institute of Gemology (IIG), is a leading consultant, trainer, and industry expert with over 20 years of experience in the jewelry sector. Renowned for his strategic insights and holistic approach, he specializes in guiding businesses toward growth through brand development, operational excellence, and tailored training. Rahul’s expertise has helped countless clients build strong brands, optimize operations, and achieve lasting success in the jewelry industry.