The Diamond Industry Is Evolving: What Jewelry Professionals Should Know (Quartz X Ross Metals)

Ian Ross was recently interviewed by a writer from Quartz Media about how the diamond industry is changing due to lab-grown diamonds becoming increasingly popular. The interview explored numerous aspects of why the industry is changing, but what should jewelry professionals and other industry insiders know?

We know that the diamond industry is experiencing some of the most significant changes seen in decades. Advances in lab-grown diamond technology, shifting global economic conditions, and evolving consumer preferences are reshaping how diamonds are sourced, priced, and perceived across the global diamond market.

But for jewelry professionals, these changes affect everything from inventory decisions and pricing strategies to marketing narratives and customer education. Understanding what’s changing in the diamond industry—and where the diamond trade may be headed—can help jewelers make informed decisions rather than relying on old assumptions about diamond value, scarcity, and demand.

For jewelers managing inventory across metals, stones, and finished jewelry, these shifts also affect sourcing decisions beyond diamonds alone.

What is happening in the diamond industry right now?

The diamond industry is transitioning away from natural stone dominance toward lab-grown diamonds becoming a standard choice for diamond jewelry. Lab-grown diamonds, in only one decade, have grown to approximately 20% of all diamond sales. While lab-grown diamonds used to only be around 10% less expensive than naturally mined diamonds, they’re now 80 to 90% less expensive, offering a major markdown and value proposition when it comes to shopping for engagement rings and other types of diamond jewelry.

Changes in demand for natural diamonds have pushed prices down and forced the natural diamond industry to begin reinventing its role in the market. Many experts believe that natural diamonds will need better marketing and clearer differentiation to remain competitive. A naturally mined diamond may appeal to consumers who value natural stones, but sellers are increasingly expected to address ethical sourcing, traceable diamonds, and supply chain transparency as part of that value proposition.

A leading trend influencing the natural diamond market is the growing emphasis on vintage and historic stones rather than newly mined diamonds. Buyers are interested in diamonds with provenance, rarity, and history—particularly as rough diamond sales slow and inventories remain elevated.

At the same time, the diamond market is vulnerable to broader global factors. Inflation, geopolitical tensions, and sanctions have disrupted diamond supply chains, while industry organizations continue to push for stronger compliance frameworks and traceability standards. These forces, combined with changing consumer sentiment, are reshaping how value is defined across the diamond industry.

What is the difference between natural and lab grown diamonds?

The differences between lab-grown diamonds and natural diamonds are less about physical properties and more about origin and context. Chemically and structurally, they are identical, and both can vary in color, carat weight, clarity, and cut.

The key differences lie in how they’re created and brought to market. Natural diamonds form around 100 miles beneath the Earth under extremely high pressures and temperatures, with many diamonds being millions to even billions of years old, while lab-grown diamonds are created artificially in controlled environments over a much shorter time frame. Because of this, natural diamond supply is technically constrained and subject to mining and supply chains, while lab-grown diamond supply can scale rapidly as production technology improves.

From a buyer’s perspective, the main factors tend to be cost, sourcing, and long-term value. Natural diamonds have historically held resale value better, while lab-grown diamonds appeal to consumers seeking affordability, ethical advantages, and consistency.

Increasingly, industry experts are warning that lab-grown diamonds are better positioned as distinct products instead of direct substitutes, because blending the two narratives has downplayed the importance of consumer sentiment and directly contributed to price pressure across the broader diamond market.

What should jewelers consider when marketing and selling different kinds of diamonds and engagement rings?

Transparency has become non-negotiable in diamond sales. Diamond buyers—whether retail consumers or wholesale customers—are more educated than ever and are actively researching everything they can before they buy. Jewelers have to be able to explain their pricing, sourcing, certification, and value clearly, especially as natural and lab-grown diamonds no longer compete on the same playing fields.

Natural diamonds are best marketed via storytelling. Sourcing, traceability, certification, rarity, and emotional significance all matter to buyers interested in fine jewelry and heirloom pieces.

Lab-grown diamonds, on the other hand, are more frequently chosen for their affordability, sustainability, and accessibility, particularly among younger consumers who recognize the diamond industry’s troubled past and want to prioritize financially conscious purchasing.

For most jewelers selling in the wholesale or retail space, it’s critical to carry both options, clearly differentiate them, and avoid forcing customers into a single narrative. This is especially relevant for businesses balancing loose stones, mountings, and finished jewelry across different customer segments.

What is on the horizon for natural diamonds and lab grown diamonds?

Natural diamonds won’t be disappearing any time soon, but their role in the market is continuing to narrow and evolve. Supply growth is expected to remain limited because of mine closures, price volatility, and reduced exploration. Demand, however, is likely to remain high for diamonds that can demonstrate rarity, provenance, or historical significance, including colored stones and vintage pieces.

Lab-grown diamonds are expected to continue gaining market share, particularly in the bridal and engagement ring categories. As production continues to expand and prices stabilize at lower levels, lab-grown diamonds are increasingly viewed as the default option for many engagement rings and fashion-forward designs. Rather than replacing natural diamonds entirely, lab-grown stones are redefining what “normal” diamond purchasing looks like, and in many ways building a new baseline for the diamond consumer to work off of.

New regulatory requirements for traceability and disclosure are also shaping the future of the diamond supply chain, pushing transparency, which may have previously only been a competitive advantage, into more of an operational necessity.

What fuels demand in the diamond market, and how might it evolve over time?

Diamonds have long been associated with commitment, celebration, and personal milestones. While those symbolic drivers remain, demand is increasingly shaped by ethics, sustainability, and perceived viability or fairness in pricing.

Younger consumers are more brand-conscious and more willing to challenge traditional narratives around luxury. Millennials and Gen Zs, for example, often favor brands with values that align with their own and are therefore more interested in buying diamonds online, particularly for smaller stones and non-bridal jewelry. At the same time, demand is shifting toward unique designs, non-round cuts, tennis bracelets, and personalized pieces rather than standardized formats. Demand in the diamond market is therefore increasingly paired with a desire for uniqueness, individuality, and qualitative reference points for the value of a piece.

Over time, diamond demand is expected to diversify rather than decline, with natural and lab-grown diamonds serving different roles within a broader jewelry ecosystem.

Is diamond jewelry an investment anymore?

For most buyers, diamond jewelry is no longer considered a reliable financial investment. While certain rare or historically significant natural diamonds may retain value, the broader market—especially for newly produced stones—does not support diamonds as a dependable store of wealth.

Many industry professionals view precious metals as more stable from a value-retention standpoint. This perspective has influenced how many jewelers and buyers alike have prioritized metals like gold and silver when thinking about long-term value. For consumers, this reinforces the importance of purchasing diamonds for personal meaning, aesthetics, and long-term satisfaction rather than expectations of resale or appreciation.