The Rise of Lab-Grown Diamonds: Why Millennial and Gen Z Couples Are Choosing Bigger, More Affordable Gems

For the first time ever, more than half of millennial and Gen Z couples are choosing lab-grown diamonds for their engagement rings, according to a recent study from The Knot. This trend is largely due to the affordability and larger size available with lab-grown diamonds compared to natural diamonds mined from the earth.

The Knot’s 2025 Real Weddings Study, published on February 26, found that over 50% of couples now prefer lab-grown diamonds. This marks a significant change, reflecting a 6% increase from the previous year and a dramatic 40% rise since 2019. Couples today see lab-grown diamonds as an opportunity to get more for their money without compromising on quality.

One major reason couples choose lab-grown diamonds is the value. Lab-grown diamonds typically cost significantly less than natural diamonds, allowing buyers to afford larger stones within their budget. In fact, The Knot reported that the average center-stone size for lab-grown diamond engagement rings in 2024 was 2.0 carats. In contrast, natural diamonds averaged only 1.6 carats. Overall, engagement rings are getting larger; the average ring carat increased from 1.5 carats in 2021 to 1.7 carats in 2024.

The affordability of lab-grown diamonds has influenced engagement ring prices overall, causing them to drop. According to The Knot, the current average price for engagement rings has fallen to about $5,200, marking a 5.7% decrease from 2023 and more than a 15% decline since 2021. In some cases, a comparable natural diamond ring can cost around 1.5 times more than its lab-grown counterpart.

Another driving factor behind the rising popularity of lab-grown diamonds among younger generations is their perceived ethical appeal. Millennials and Gen Z shoppers are drawn to lab-grown diamonds because they believe these gems offer an ethical and environmentally friendly alternative to traditionally mined diamonds. Lauren Kay, executive editor at The Knot, explained that today's buyers are especially conscious of their budget, perceived value, and ethical production practices.

However, despite being marketed as environmentally sustainable, lab-grown diamonds are not entirely eco-friendly. Producing lab-grown diamonds requires significant amounts of energy because the process involves subjecting carbon to extremely high pressure and high temperatures over several weeks. Most lab-grown diamonds are produced in countries like China and India, where the main source of electricity is fossil fuels like coal, making this process energy-intensive and associated with high greenhouse gas emissions.

According to the International Diamond Center (IDC), more than 60% of lab-grown diamonds come from regions heavily reliant on coal power. This contradicts some of the sustainability claims about lab-grown diamonds, even though organizations such as the International Grown Diamond Association maintain that lab-grown diamonds cause minimal ecological harm compared to mined diamonds.

In response to the growing popularity of lab-grown diamonds, traditional diamond producers are facing pressure to reduce their prices. In late 2024, De Beers, the world's largest natural diamond producer, significantly lowered prices by 10% to 15%. Industry experts, including a report from McKinsey & Co., identify lab-grown diamonds as one of the biggest challenges facing traditional diamond producers today.

Still, experts like New York-based diamond analyst Paul Zimnisky argue that environmental concerns aren't the primary reason behind consumers' choice of lab-grown diamonds. Instead, he emphasizes that price remains the most influential factor driving this shift. Ultimately, couples seem to prioritize getting a larger, more impressive stone within their budget, highlighting the continued appeal of lab-grown diamonds for engagement rings.

https://fortune.com/2025/03/11/lab-grown-diamonds-vs-natural-gems-engagement-rings-stones-carats-prices/