More people are rethinking how they shop for jewellery. Value, sustainability, and transparency are now at the centre of buying decisions—especially when it comes to high-ticket items like diamonds.
Younger consumers, in particular, are pushing this shift. They’re questioning the source of what they buy and comparing options online before stepping into a store. This has opened the door for alternatives that offer the same sparkle without the same ethical or environmental concerns.
One of the clearest outcomes of this change is the rise in demand for lab-grown diamonds.
What’s Driving Demand?
A few key factors are behind the rise in interest:
1. Ethical concerns
Many buyers are wary of how mined diamonds are sourced. Lab-grown diamonds offer a clear origin and don’t carry the same baggage around environmental damage or labour issues. For consumers who want peace of mind, this matters.
2. Better pricing
Lab-grown diamonds are typically 30–50% cheaper than mined ones of similar quality. In a market where people are budgeting more carefully—especially younger Australians—this price difference is a big deal.
3. Online-first buying habits
Shoppers are more comfortable buying jewellery online now. E-commerce makes it easy to compare options and learn about lab-grown diamonds. Direct-to-consumer brands have used this to build trust and grow fast, even without a physical store.
4. Brand positioning and social proof
Lab-grown options are no longer seen as “less than.” Brands and influencers have helped shift perception, especially on platforms like Instagram and TikTok, where visual appeal and personal values go hand-in-hand.
Market Growth: Australia and Beyond
Globally, the lab-grown diamond market is on a significant upward trajectory. Projections indicate it could reach USD $59.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.6% from 2023. Sources: Allied Market Research; Forbes Australia
In Australia, this trend is mirrored by a notable surge in consumer interest and market activity:
· Retailer Adoption: Approximately 40% of Australian retailers acknowledged that lab-grown diamond jewelry had become a significant part of their business over the past decade. Source: Rapaport
· Emerging Enterprises: The Moissanite Company (TMC), founded in June 2021, exemplifies this growth. Starting with a $10,000 investment, TMC reported revenues nearing $10 million within a few years, highlighting the robust demand for lab-grown diamond jewelry among Australian consumers. Source: news
· Price Dynamics: The affordability of lab-grown diamonds is a significant factor driving their popularity. For instance, a one-carat natural diamond wholesales for about $3,500, whereas its lab-grown counterpart is approximately $250. Source: The Guardian
These indicators underscore a clear shift in the Australian diamond market, with lab-grown diamonds gaining substantial traction among consumers and retailers alike.
Shifts in Consumer Behaviour
Buying habits around diamonds are changing—and it’s not just about price.
1. Younger buyers want control
Millennials and Gen Z aren’t interested in buying whatever’s in the display case. They want to choose the stone, the setting, and sometimes even the company they’re supporting. Customisation matters. Lab-grown diamonds make it easier (and more affordable) to get something unique.
2. Values are part of the purchase
Many shoppers now link their values to what they buy. Sustainability, transparency, and traceability all matter more. A report from The Guardian noted that Australians are increasingly aware of the environmental and ethical impacts of mined diamonds—and actively seeking alternatives.
3. Engagement trends are shifting
The idea of “the one big rock” is evolving. Some couples now choose non-traditional stones, coloured lab-grown diamonds, or lower-carat options that look just as good. The sentiment stays the same, but the source and shape of the ring often change.
4. Social media drives decisions
Instagram, Pinterest, and TikTok have become virtual showrooms. People see lab-grown diamonds styled beautifully and realise they’re not “fake”—just different. This exposure normalises lab-grown as a real, legitimate choice.
Challenges and Misconceptions
Even with rising demand, lab-grown diamonds still face some confusion in the market.
· “Are they real?” – This is the most common question. Some buyers still think lab-grown diamonds are fakes, like cubic zirconia. But chemically and physically, they’re the same as mined diamonds. The difference is how they’re made—not what they are.
· Resale value concerns – Mined diamonds have long been positioned as investments, though resale prices are often lower than expected. Lab-grown diamonds generally have lower resale value, but most buyers today aren’t purchasing with resale in mind—they’re buying for personal reasons, not long-term returns.
· Retailer education gaps – Not all jewellers are on the same page. Some still hesitate to stock lab-grown stones or explain them clearly to customers. This can make the buying process more confusing, especially for first-timers.
· Trust in certification – While lab-grown diamonds do come with grading reports, some consumers aren’t sure which labs are legit. In Australia, stones graded by IGI or GIA are widely trusted, but educating buyers on this is still important.
Future Predictions
The lab-grown diamond market isn’t slowing down anytime soon. A few trends are likely to shape what happens next:
1. Better production tech
As the technology improves, quality goes up and costs come down. This means larger, clearer stones at prices that continue to undercut mined diamonds. It also makes production more scalable, which supports wider retail adoption.
2. Mainstream retail will catch up
In Australia, larger jewellery chains are still testing the waters. But as consumer demand grows, lab-grown diamonds will move from “niche offering” to standard inventory. Stores that ignore this shift risk losing relevance with younger shoppers.
3. Big brands may pivot
Luxury brands are beginning to explore lab-grown options—not just for ethical points, but to meet customer expectations. If major global names make the switch, that legitimacy will ripple across local markets too.
4. Resale and recycling might evolve
Resale platforms and circular economy models could emerge, especially if consumers start expecting better trade-in or upgrade options. This could be a new business opportunity for forward-thinking jewellers.
5. Online-first will stay dominant
Customisation tools, virtual try-ons, and AI-driven design suggestions are making online diamond shopping easier. This is especially important in Australia, where access to physical stores can vary depending on region.
Final Takeaway
The lab-grown diamond market is growing fast—globally and here in Australia. Driven by changing values, better pricing, and smarter tech, it’s shifting how people think about jewellery.
This isn’t just a trend—it’s a reset in what customers expect. For online shops and local retailers, the opportunity is clear: offer quality, build trust, and meet buyers where they are.
Lab-grown diamonds aren’t replacing tradition—they’re creating a new one.
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