US Lab Grown Diamonds Market 2026 – 2035

Reports Description

As per the US Lab Grown Diamonds Market analysis conducted by the CMI team, the US passenger car motor oil market is expected to record a CAGR of 11.37% from 2025 to 2035. In 2026, the market size was USD 24.23 Billion. By 2035, the valuation is anticipated to reach USD 64.12 Billion.

Overview

The last few years have witnessed an exponential demand for lab grown diamond jewelry in the US, which has increased the sales of the product. Jewelry is offered in a broad variety like earrings, rings, necklaces, and bracelets to cater to the needs of the end-users. Key players such as Limelight Diamonds, Variation, Syndiora, House of Quadri, and Emori focus on provision of a diverse spectrum of lab grown diamond jewelry.

Increased use of the lab grown diamonds across several industries inclusive of machinery components, cutting tools, abrasives, and semiconductor devices owing to hardness and strength on their part is keeping the cash registers ringing for the US lab grown diamonds market.

Market Highlights

• The CVD technology held the largest market (63.57%) share by manufacturing method in 2025 and is expected to witness the fastest CAGR (12.27%) during the forecast period.

• The colorless lab grown diamonds dominated in 2025 with 53.47% of the market share and are expected to witness the fastest CAGR (11.25%) during the forecast period.

• By size, below 2 carat lab grown diamonds dominated the market in 2025 with 37.42% of the market share and are expected to witness the fastest CAGR (9.56%) during the forecast period.

• By application, the fashion segment dominated in 2025 with 54.25% of the market share.

• By application, the industrial segment is expected to witness the fastest CAGR of 10.46% during the forecast period.

Key Trends & Drivers

• Increased Industrial Applications

The US lab grown diamond market is expanding due to utilization of lab grown diamonds by various industries in semiconductor devices, machinery elements, cutting tools, and abrasives due to their strength and hardness. As such, these diamonds do serve as adopted materials for drilling, polishing, grinding, and cutting operations across several sectors such as automotive. These diamonds have an exceptional thermal conductivity, which enables their addition to electronic devices like computers and diode lamps.

What’s trending in the US Lab Grown Diamonds Market?

The ongoing trend speaks of a growing inclination toward lab grown diamonds over their natural counterparts, thereby rendering them a desirable solution. Also, the consumers are selecting diamonds from ethically sourced and sustainable origins. As lab grown diamonds do not generate demand for mining operations, they do away with environmental hazards such as carbon emissions and deforestation. Also, lab grown diamonds are all set to serve dual purposes as they do function as jewelry and facilitate electronics applications owing to their exceptional durability and thermal properties.

What would be Business Impact of the US tariffs on the US Lab Grown Diamonds Market?

Conventional supply chains are breaking, thereby compelling companies to locate new sources or diversify, thereby resulting in uncertainty. The fluctuating landscape of tariffs does make long-term planning difficult, which is likely to dampen the market investments and sentiments on the whole.

The US tariffs on Indian diamonds do disrupt the US lab grown diamond market by making the Indian lab grown diamonds less competitive, thereby shifting the production to other regions. The players are thus forced to absorb losses, whereby profit margins and jobs could be impacted.

Key Threats

The US lab grown diamonds market is encountering visible challenges from natural diamonds and also gemstones such as sapphires emeralds, peridots, amethysts, and garnets, which are easily sourced. The interest of consumers in these alternatives is rising as they do offer several fascinating features such as superlative quality and remarkable beauty with longer life. These quality issues are resulting in potential buyers looking down upon lab grown diamonds.

Opportunities

Sustainability movement in the US is compelling the consumers to opt for lab grown diamonds. These diamonds do bypass the requirement of mining operations as their production does not prove to be detrimental to the forests. Also, they do not emit green house gases. The growing awareness of these practices amongst Gen Z and millennials drives demand for ethical diamonds that are sustainably sourced. Amalgamation of ethical problems pertaining to natural diamonds and environmental concerns is thus likely to spur the growth of the US lab grown diamonds market during the forecast period.

Category Wise Insights

By Manufacturing Method

• HPHT

HPHT does replicate the mantle conditions (such as high pressure and high temperature) of the earth for increasing the production of diamonds, thereby ascertaining that they have the same chemical, physical, and optical properties as various natural diamonds. It is effective especially in the creation of diamonds with exceptional clarity and color, thereby surpassing the natural stones in purity. HPHT does provide natural resemblance and foundational quality that is able to convince the consumers for large-scale adoption of lab grown diamonds.

• CVD

CVD (chemical vapour deposition) technology is amongst the primary drivers of the US lab grown diamonds market. The process allows for accurate control over shape, size, color (inclusive of fancy colors), and clarity, thereby addressing the demands for high-purity industrial applications and exclusive luxury products. CVD is faster and more energy-efficient as compared to HPT methods, whereby manufacturing costs get reduced and diamonds could be made more accessible.

By Nature

• Colorless

The colorless lab grown diamonds cater to the demand for conventional engagement rings, fashion jewelry, and necklaces while being cost-efficient (30-50% less). Majority of colorless lab diamonds belong to Type II (with no nitrogen impurities), thereby rendering them optically better and purer for various high-tech uses as compared to natural diamonds. Their optical properties make them ideal for lasers, electronics, and optical components, thereby driving a robust industrial demand.

• Colored

Colored lab grown diamonds provide exotic, bold colors (green, yellow, blue, and pink), which allow for exclusive customization and jewelry. Lower costs of production do make these vibrant colors accessible to a wider audience. These diamonds draw millennials and Gen Z, who prioritize conflict-free options and sustainability. Also, enhanced HPHT/CVD methods continually produce high class, bigger diamonds.

By Size

• Below 2 Carat

The below 2 carat lab grown diamonds are visibly cheaper (generally 60-80% less) as compared to natural diamonds, thereby making them affordable for Gen Z and millennials. This category holds the largest market share as it is the entry point for the majority of consumers. This size (below 2 carats) is perfect for wedding and engagement rings. Their lower weight and smaller size are also ideal for fashion jewelry.

• 2-4 Carat

The 2-4 carat lab grown diamonds are cheaper, whereby consumers can afford bigger carat sizes for almost the same price as compared to smaller mined diamonds. The brands such as James Allen and Brilliant Earth are promoting the size, thereby making it one of the mainstream sizes for fashion and engagement jewelry. This segment is expected to witness the fastest CAGR in the US lab grown diamonds market during the forecast period.

• Above 4 Carat

The 4+ carat lab grown diamond offers the same quality and look as that of a natural diamond at a fraction of the latter’s cost, thereby democratizing luxury. The youth asks for big, impressive stones for noteworthy purchases (such as engagement rings) but are ethically minded and budget-conscious, which is where above 4 carat lab grown diamonds fit in.

By Application

• Fashion

The fashion segment implies addressing consumer demand for ethical sourcing, affordable luxury, and self-expression. Lab grown diamonds provide customizable, larger eco-friendly jewelry for daily wear. The major brands such as Signet and Pandora are advocating the use of fashion-centric lab grown diamonds through wider retail strategies and celebrity endorsements. This shift does move diamonds beyond heritage/bridal into daily fashion needs.

• Industrial

The industrial segment drives the US lab grown diamonds market expansion by making provisions for high-demand applications in construction (cutting/drilling tools), automotive, and electronics (semiconductors/heat sinks), with robust B2B growth in sectors such as quantum computing, IoT, and AI. This thus solidifies lab-grown diamonds as crucial materials pertaining to technology.

Historical Context

Lab grown diamonds imply artificial or man-made diamonds developed using High Pressure High Temperature (HPHT) and Chemical Vapor Disposition (CVD) manufacturing processes. Lab grown diamonds are used in cutting tools, research, jewelry, and machinery components, which does trigger the sales all over the US Also, they are more cost-efficient in comparison with natural diamonds as they are devoid of mining.

Call for sustainability does support the adoption of lab grown diamonds. They are eco-friendly as they do not cause any damage to earth. These diamonds do not require mining. As such, ill effects like air pollution, deforestation, carbon emission, land erosion, and water pollution are not encountered. Also, lab grown diamonds consume less electricity that could be generated from the renewable resources and do not use harmful chemicals or substances in the production process.

How is AI impacting the US Lab Grown Diamonds Market?

AI algorithms conduct analysis of real-time data from high-pressure high-temperature (HPHT) and chemical vapor deposition (CVD) production processes for optimizing growth conditions, minimize consumption of energy, reducing defects, and raising the overall yield. Conventionally subjective human grading is being replaced or augmented by the AI-powered systems that utilize machine learning and high-resolution scanning for evaluating 4Cs (carat, clarity, color, and cut) with a higher level of consistency and precision. This, in turn, does build consumers’ trust by providing data-backed, objective assignments. AI is also being integrated with Blockchain technology, which provides greater traceability and transparency. Every diamond can be provided a digital fingerprint, whereby buyers can verify its origin as well as its journey from creation to sales.

Report Scope

Key Developments

The US lab grown diamonds market is witnessing a significant organic and inorganic expansion. Some of the key developments include –

• In August 2023, Adamas One Corp completed the acquisition of Flawless allure-grown diamonds (Mumbai, Maharashtra, India) for boosting its diamond production.

Leading Players

The US lab grown diamonds market is highly competitive, with a large number of service providers. Some of the key players in the market include:

• Diamond Foundry Inc.
• WD Lab Grown Diamonds
• Adamas One Corp
• New Diamond Technology (NDT) & Ila Technologies
• De Beers Group
• Others

These firms apply a plethora of strategies to enter the market, including innovations and mergers and acquisitions, as well as collaboration. The US lab grown diamonds market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The US Lab Grown Diamonds Market is segmented as follows:

By Manufacturing Method

• HPHT
• CVD

By Nature

• Colorless
• Colored

By Size

• Below 2 Carat
• 2-4 Carat
• Above 4 Carat

By Application

• Fashion
• Industrial