Lab-Grown vs. Natural Diamonds: What Every Buyer Should Know
How lab-grown stones have reshaped the diamond market since 2020, and how to decide which is right for you.
The short version
- Lab-grown and natural diamonds are the same material. You can't tell them apart by eye. The real differences are origin, rarity, and long-term value.
- Lab-grown now makes up about 61% of U.S. engagement rings, up from 12% in 2019.1
- Lab-grown wholesale prices have fallen roughly 90% or more since 2018, and they are still dropping.3,4
- Natural diamond prices have softened too, but a natural stone still keeps meaningful value. A lab-grown stone has little to no resale value.4,5
- Both are beautiful choices. The right one depends on what matters most to you.
1. What is a lab-grown vs. a natural diamond?
A natural diamond is pure carbon that crystallized deep inside the earth, typically one to three billion years ago, and was carried to the surface by ancient volcanic eruptions. Every natural diamond is a finite piece of geologic history.
A lab-grown diamond is also pure crystallized carbon, but it is made in a factory in a matter of weeks, using either high pressure and high temperature (HPHT) or chemical vapor deposition (CVD). It is a real diamond, not a simulant like cubic zirconia or moissanite.
Because the two share the same physical, chemical, and optical properties, you cannot tell them apart with the naked eye or a jeweler's loupe. Specialized laboratory equipment is needed. That is why the FTC requires sellers to clearly disclose a lab-grown stone with a term such as "laboratory-grown" or "laboratory-created," placed right before the word "diamond."7
| Natural diamond | Lab-grown diamond | |
|---|---|---|
| Material | Crystallized carbon | Crystallized carbon |
| How it's formed | Over billions of years, deep in the earth | In weeks, in a factory (HPHT or CVD) |
| Looks and durability | Identical to the eye; hardness 10 | Identical to the eye; hardness 10 |
| Supply | Finite and rare | Unlimited; can be produced on demand |
| Price today | Higher | A fraction of natural for the same size and quality |
| Resale value | Retains meaningful value, though below retail | Little to none4 |
| GIA grading | Full 4Cs report (color, clarity, cut, carat) | Since late 2025, a simpler "premium" or "standard" rating instead of the natural color and clarity scales6 |
That last row is telling. GIA, the world's leading diamond grading authority, stopped using its natural-diamond color and clarity scales for lab-grown stones because more than 95% of them fall into a very narrow range of color and clarity.6 In other words, "perfect" is easy to manufacture. Rarity is what a natural diamond offers that a lab cannot.
2. Diamond industry trends since 2020
No development has changed the diamond industry more in the last few years than the rise of lab-grown stones. The engagement ring market shows it most clearly.
Engagement rings with a lab-grown center stone (U.S.)
Source: The Knot Real Weddings Studies (2025 and 2026 editions).1,2
Couples are also buying bigger stones for less money. The average engagement ring center stone grew from about 1.5 carats in 2021 to 1.7 carats in 2024, while average spending fell from about $6,000 to $5,200.2 Among couples who married in 2025, lab-grown rings averaged 1.9 carats.1
At the same time, lab-grown prices have collapsed:
The clearest signal came in May 2025, when De Beers, the world's best-known diamond company, announced it would close Lightbox, the lab-grown jewelry brand it launched in 2018. De Beers said lab-grown prices had fallen about 90% at wholesale since launch, and it is refocusing on natural diamonds.3
3. How lab-grown has affected natural diamond prices and demand
Lab-grown stones have taken a large share of demand, especially at the lower and middle of the market, and natural prices have felt it. Rapaport, the industry's main price benchmark, reported that round 1-carat natural diamonds (SI clarity) fell about 24% in 2025.5 Rapaport points to several causes working together:5
- Lab-grown competition. Some demand has moved permanently to lab-grown.
- A slowdown in China, once a major growth market, along with falling marriage rates.
- U.S. tariffs on diamonds cut and polished abroad, especially in India.
- Lower rough prices from mining companies trying to move inventory.
Here is the key point for buyers: both kinds of diamonds have fallen in price, but not in the same way.
Natural
- Prices have softened from their 2022 peak, making this a more favorable time to buy.
- Supply is finite, and mines are aging.
- An established resale and trade-in market exists.
4. Why choose a natural diamond?
A word of honesty about "investment"
I've spent more than 40 years in financial services, so I choose my words carefully here: a diamond is not a financial investment like a stock or a bond. Buying at retail and reselling almost always means selling for less. What a natural diamond does offer is something no factory can make, and it holds its value far better than a lab-grown stone.
Rarity
Only a limited number of natural diamonds exist, and every one is unique. A lab can produce the same stone again tomorrow.
Value that lasts
A natural diamond keeps real value for trade-in, resale, estate planning, or insurance replacement. A lab-grown stone bought today will likely be worth less next year as production costs keep falling.
Meaning and heirloom quality
A natural diamond formed over a billion years before it reached your hand. For many people, that story is part of what makes it the right symbol for a lifetime commitment, and the right piece to pass down.
Better value than in recent years
With natural prices down from their peak, a buyer today may get more natural diamond for the money than a few years ago.
5. When is natural the right choice, and when is lab-grown?
Natural is usually right when…
- The ring is meant to be an heirloom you'll pass down.
- Holding value over time matters to you, whether for a future upgrade, insurance, or your estate.
- Rarity and a one-of-a-kind stone matter as much as size.
- You want a natural fancy-color diamond or an unusual cut.
- The symbolism of an earth-made stone is important to you or your partner.
Lab-grown can be a smart choice when…
- Getting the largest look for your budget is the top priority.
- You see the ring as a beautiful piece to enjoy, not an asset to hold.
- It's a fashion piece, such as earrings, a tennis bracelet, or a travel ring.
- Your budget is set, and you'd rather put more toward the design.
There's no wrong answer, only an informed one. We work with both natural and lab-grown diamonds, and with colored gemstones of your choice, so we can recommend what truly fits you rather than what we need to sell.
6. Diamond shapes: a visual guide, and what's popular today
"Shape" is the outline of the diamond seen from above. It shapes the ring's whole personality, and it affects price and how large the stone looks. Every shape below is available in natural or lab-grown diamonds, and most in colored gemstones too.
Most popular engagement ring shapes (2025 weddings)
Source: The Knot 2026 Real Weddings Study, as reported by National Jeweler.8 Cushion includes old mine and elongated cushion cuts.
The big story today is elongated shapes. Oval has climbed from about 2% of engagement rings in 2015 to a near tie with round.9 Emerald, marquise, and elongated cushion cuts are among the fastest-growing shapes, while princess, once the No. 2 shape, has fallen back.8
Round 26%
#1 Most popularThe classic. With 58 facets cut for maximum brilliance, it's the most sparkling shape. It costs more per carat, because the most rough is lost in cutting it.
Oval 25%
TrendingRound-like sparkle in a longer shape that flatters the finger and looks larger than a round of the same weight. Look for a minimal "bow-tie," a dark band across the center.
Emerald 8%
RisingA step cut with long, open facets that create a "hall of mirrors" flash rather than sparkle. Elegant and vintage. Its clear facets show inclusions, so clarity matters more.
Pear 8%
ElegantA teardrop that blends round and marquise. It elongates the finger and is very flattering. The point should be protected with a prong.
Marquise 8%
RisingA boat shape with pointed ends. It has the largest face-up look for its carat weight of any shape. It's having a strong vintage revival. The points need protection.
Princess 8%
Cooling offA square shape with brilliant sparkle and a crisp, modern look. It's often good value per carat. The sharp corners should be protected in the setting.
Cushion 6%
RomanticA square or rectangle with softly rounded corners, like a pillow. It has a romantic, vintage feel. The elongated cushion and antique "old mine" cut are both popular now.
Radiant 6%
BrilliantThe outline of an emerald cut with the sparkle of a brilliant. Its trimmed corners make it durable and practical for an active lifestyle.
Asscher Specialty
Art DecoA square step cut with cut corners and a hypnotic "windmill" pattern. It's a signature of 1920s Art Deco jewelry and suits vintage-inspired designs.
Heart Specialty
RomanticThe most symbolic shape. Symmetry is everything. Choose about half a carat or larger so the heart shape reads clearly once set.
Percentages show the share of 2025 engagement rings by center-stone shape. Asscher and heart together make up a small share of the remaining 5%.
Let's design your ring together
Custom engagement rings with natural or lab-grown diamonds, or the gemstone of your choice. By appointment only.
Book a Consultation Call or Text (646) 645-2453Sources
- The Knot Worldwide, 2026 Real Weddings Study (couples married in 2025), February 2026.
- IDEX Online, "52% of Engagement Rings Are Now Lab Grown", reporting The Knot 2025 Real Weddings Study.
- De Beers Group, "De Beers Group announces intention to close Lightbox business", May 8, 2025.
- JCK, "Lab-Grown Diamond Wholesale Prices Are in Freefall", citing analysts Edahn Golan and Paul Zimnisky, 2026.
- Rapaport, "Decline in Diamond Prices Eases" (press release), February 4, 2026.
- GIA, "GIA to Use New Descriptive Terminology for Laboratory-Grown Diamonds", 2025.
- Federal Trade Commission, "In the Loupe: Advertising Diamonds, Gemstones and Pearls".
- National Jeweler, "Engagement Ring Trends 2026: What's In, and Why", citing The Knot 2026 Real Weddings Study and Stuller.
- The Knot, "The Most Popular Engagement Ring Styles Right Now" (2024 Jewelry and Engagement Study).
Market figures change quickly. This page reflects published data as of September 2026 and is for education only. It is not financial or investment advice.