Why Some Entrepreneurs Are Betting on Lab Grown Diamonds

The Lab Grown Diamond Market Is Shifting: What Retailers and Buyers Need to Know

For years, the narrative around lab grown diamonds has focused on innovation, ethical sourcing, and affordability. But according to diamond industry analyst Paul Zimnisky, the market is reaching a turning point. In a recent interview, Zimnisky noted that while lab grown diamonds—often promoted as sustainable alternatives to blood diamonds—have become incredibly popular, the rapid price drops and changing retail strategies could signal deeper concerns for the industry.

Zimnisky points out that demand has largely been driven not by consumers, but by retailers attracted to profit margins that were once as high as 80-90%. As lab grown diamonds became easier to produce—sometimes for under $10 per rough carat—their value perception began to erode. While it's now easy to buy man made diamonds online or source loose lab grown diamonds wholesale, the glut of inventory is putting pressure on pricing, with the average lab grown diamond 3 carat price dropping dramatically. Wholesale lab created diamonds, once seen as a lucrative segment, now raise concerns about long-term sustainability.

The challenge, according to Zimnisky, is differentiation. Many retailers still present lab grown and mined diamonds as equal, which could confuse customers and damage the perceived rarity of natural stones. His suggestion? Segregate the categories entirely—sell mined diamonds in one store and custom lab grown diamond engagement rings in another. With platforms like CVD Diamond Inc and Rare Carat lab grown diamonds pushing accessibility and price, the conversation must shift to product transparency, design innovation, and consumer education. As the diamond market continues to evolve, brands that clearly define their offerings—whether it's GIA certified lab grown diamonds or custom lab grown diamond rings—will be the ones that maintain trust and value in an increasingly competitive space.

Lab Grown Diamonds Are Reshaping the Engagement Ring Industry

With wedding season on the horizon, more couples are seeking beautiful, ethical, and budget-friendly options for their engagement rings. Lab grown diamonds are increasingly the go-to choice. Produced through high-temperature, high-pressure processes like CVD and HPHT, these stones offer the same brilliance and chemical structure as natural diamonds—at a fraction of the cost. According to Statista, lab grown diamonds are expected to account for 21% of global diamond sales this year.

Entrepreneurs like Jesse De Leon of Liori Diamonds are capitalizing on this shift. Originally a seller of natural diamonds, De Leon pivoted to lab grown in 2021, identifying a growing demand for sustainable luxury. Since the transition, his business has grown from a one-man operation into a team with showrooms in both New York City and Miami, generating nearly $7 million in revenue in 2023. His clients are drawn to the ability to design lab grown diamond rings with full control over cut, clarity, carat, and shape—all while staying within budget.

From elongated cushion cut lab grown diamonds to heart-shaped solitaires, Liori’s offerings reflect a shift in consumer priorities—toward personalization, value, and ethics. Lab grown options are no longer niche; they’re mainstream. With increasing numbers of buyers choosing to buy lab grown diamonds online, especially through platforms that offer GIA certified lab diamonds and wholesale lab diamonds, the trend is accelerating. As more retailers follow suit, the future of engagement jewelry may be built on custom lab grown engagement rings that balance innovation with timeless beauty.

https://www.forbes.com/sites/elainepofeldt/2025/02/24/for-some-couples-lab-grown-diamonds-are-forever-this-entrepreneur-is-betting-his-business-on-the-trend/