The global diamond industry is undergoing a major transformation as lab-grown diamonds become cheaper and increasingly popular, putting pressure on traditional natural diamonds.
Lab-grown diamonds are chemically and physically the same as natural diamonds, but they can be produced in laboratories within weeks rather than forming underground over billions of years.
The price gap has widened dramatically. According to diamond industry analyst Paul Zimnisky, a one-carat natural diamond that retails for about US$4,900 can be matched by a lab-grown diamond costing around US$850 or less. Lab-grown stones are now estimated to account for about a third of the global diamond jewelry market.
The growing popularity of lab-grown diamonds has contributed to falling natural diamond prices and increased pressure on major mining companies. De Beers recently suspended production at a major South African mine amid difficult market conditions.
Experts say consumers generally cannot tell a natural diamond from a lab-grown one by simply looking at it. Specialized equipment or certification is needed to identify the difference.
