Lab-grown diamonds are losing their appeal due to oversupply, and consumer preferences are beginning to shift back toward natural stones, said World Diamond Council President Feriel Zerouki.
According to a Reuters report, the natural diamond industry has seen a drop in prices since mid-2022, after peaking earlier that year — mainly due to the growing popularity of lab-grown gems, particularly among younger jewelry buyers.
However, the collapse in lab-grown diamond prices, driven by rising production in China and India, has begun to erode confidence in synthetic gems, Zerouki told Reuters in an interview during a mining conference in Luanda, Angola, on Wednesday (22).
“If we look at recent trends, the prices of lab-grown diamonds are falling, which affects consumer confidence in lab-grown diamonds,” Zerouki noted.
Diamond industry analyst Edahn Golan highlighted that the average wholesale price of one- and two-carat lab-grown diamonds has fallen by as much as 96% since 2018. Experts have warned that lab-grown gem prices may drop so sharply that they become fashion accessories no longer competing with natural diamonds — particularly in the key bridal market.
“I believe the lab-grown diamond bubble has burst. And in fact, there is a movement within the trade, even at the retail level, to return to natural diamonds,” Zerouki added.
The executive, who also serves as Vice President of Industry and Commerce at global diamond giant De Beers, stressed that a recovery in demand for natural stones will not happen automatically but requires coordinated efforts such as the Luanda Agreement — an accord between diamond-producing countries and companies to establish a collective marketing fund for natural diamonds.
Under the agreement, countries including Angola, Botswana, the Democratic Republic of Congo, Namibia, and South Africa have committed to allocating 1% of their annual diamond sales revenue to a campaign promoting natural stones.
Source: Diário Económico
