Natural diamond prices have fallen to their lowest levels this century as lab-grown alternatives gain rapid ground for engagement rings. Industry figures show a one-carat natural diamond averaged around £3,134 ($4,200) in 2025, down sharply from earlier peaks. A major survey of couples who married last year found 61 per cent selected a lab-grown centre stone for their engagement ring.
The drop stems from expanded lab-grown production and softer demand for mined stones.Natural one-carat diamonds tradedaround £3,134 ($4,200) last year, compared with roughly £4,478 ($6,000) in 2021. Some measures indicate prices have more than halved since 2022, placing them at the lowest point in over a century.
The Street reported that global production capacity for lab-grown diamonds has risen more than 300 per cent since 2020. These stones, identical in chemical structure and certified under the same 4Cs standards by bodies such as the GIA, offer buyers a lower-cost option without sacrificing appearance or durability. Weak consumer spending in key markets has added pressure on traditional supply chains, with miners reporting slower sales of rough diamonds.
Industry observers note that this expansion, driven largely by manufacturers in India and China, has fundamentally altered the economics of the diamond trade.
The Knot's 2026 Real Weddings Study, based on more than 10,000 couples married in 2025, reported that lab-grown diamonds featured in 61 per cent of engagement rings. This marks a 239 per cent increase since 2020 and follows the point where they first exceeded 50 per cent the previous year. In arecent Instagram reelthe organisation noted couples embracing the option amid economic pragmatism and evolving values, with 40 per cent specifically prioritising a lab-grown stone.
Similar conversations feature inTikTok videosfrom jewellers explaining how these stones enable bigger or more customised designs at accessible prices.
This is how much you should be paying for a lab grown diamond#labgrowndiamond
Average spending on engagement rings declined to £3,433 ($4,600) last year. Those choosing lab-grown stones secured larger average sizes, around two carats, against 1.6 carats for naturaldiamond rings.
Overall carat sizes across the market rose to 1.9 carats as couples took advantage of the value to select bigger stones. Oval cuts proved popular among lab-grown selections while rounds remained common for natural stones. Many couples redirected savings toward other aspects of their weddings or simply larger gems that better suited their preferences.
Traditional diamond miners have faced significant headwinds. De Beers cited greater shifting of customer preference toward laboratory-grown diamonds as a factor in lower results in The Street report. Its parent company recorded substantial impairments and the business posted a net loss for 2025, prompting production cuts and output reductions of around 12 per cent.
Source: International Business Times UK
