Over 70% of lab-grown diamonds made in coal-reliant grids in India, China, says Natural Diamond Council

The production costs for lab-grown diamonds have dropped by nearly 90 per cent
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istock

Over 70 per cent of laboratory-grown diamonds (LGDs) are made in coal-reliant grids in China and India, often using mined materials and large volumes of water, sometimes in water-stressed regions, said the “Laboratory-Grown Diamond Facts Report” published by the Natural Diamond Council (NDC).

“Claims of being ‘carbon-neutral’ are often rooted in carbon offsetting, without reflecting the full life-cycle emissions. Additionally, key pillars of social sustainability, like community development, are always missing from the lab-grown diamond narrative,” said the NDC, a global not-for-profit organisation that promotes and protects the natural diamond industry.

Need to address confusion

On the report, Richa Singh, Managing Director, India and Middle East, Natural Diamond Council, said, “In India, where natural diamonds hold deep cultural and emotional significance, there is a growing need to address rising consumer curiosity and confusion.” These reports are part of NDC’s ongoing efforts to provide retailers and consumers with clear, validated information they can trust, she said.

Calling its initiative one empowering retailers and educating consumers with fact-based perspectives, the council said while production costs for lab-grown diamonds have dropped by nearly 90 per cent, their market prices have declined sharply, with 1.5-carat stones losing up to 86 per cent of their value over the past decade. A 1.5-carat lab-grown diamond that cost $10,750 in 2015 is priced at just $1,455 in 2025.

The NDC said data supplied by analysts Edahn Golan on wholesale prices and Paul Zimnisky on retail prices show that the wholesale price for a 1 carat round near colourless (FGH) high-clarity (VS1) laboratory-grown diamond is now just 5 per cent of what it was seven years ago in 2018 (i.e. it has fallen by 95 per cent), while the retail price is 24 per cent of what it was in 2018 (a fall of 76 per cent). 

Bringing clarity

Analysis by Paul Zimnisky for the last 5 years shows that the average retail margin on laboratory-grown diamonds has increased over the period from 46 per cent to 84 per cent. Put another way this means the average mark-up on synthetic diamonds has increased from 85 per cent to over 500 per cent, it said. 

“While the lab-grown diamond landscape raises important considerations, the value of natural diamonds tells another story. In a world where nearly everything is replicable, owning a rare natural diamond stands as a symbol of authenticity and exclusivity,” the NDC said.

Responding to NDC’s report, Ricky Vasandani, CEO and Founder of Solitario, said the council’s report helps to bring clarity to a fast-changing industry. 

“At Solitario, we believe natural and laboratory-grown diamonds will continue to coexist, each appealing to different aspirations and moments in a consumer’s life,” he said. 

Sharing same sparkle

Natural diamonds remain rare, emotionally significant, and steeped in heritage, while lab-grown diamonds are shaping the future with accessibility, innovation, and travel-friendly versatility. 

“Both share the same sparkle, but their stories are distinct. Educating consumers with fact-based insights ensures they can choose the diamond that best reflects their values, lifestyle, and occasion. The future of fine jewellery lies in celebrating choice, where tradition and innovation shine together,”  said Vasandani.

The NDC in the report provides details on how lab-grown diamonds differ from natural ones—across origin, terminology, sustainability claims, and market trends.

It said LGDs are created in controlled factory environments over weeks, using two primary methods—HPHT (High Pressure High Temperature) and CVD (Chemical Vapour Deposition). These differ significantly from the natural formation process that occurs over billions of years underground.

Clarity the differentiator

“As per ISO 18323 standards, correct terms include laboratory-grown, laboratory-created, or synthetic diamonds. Terms like real, natural, genuine, and precious are reserved exclusively for Earth-mined diamonds,” it said.

Stating that sustainability claims require full context, the council said generalised claims such as “carbon-neutral” or “eco-friendly” often rely on offsets and may not account for the full energy-intensive production process and supply chain impact.

In a world shaped by endless choice, clarity becomes the true differentiator, the NDC said.

Published on August 18, 2025

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