Key Market Insights:
The global lab grown diamond market reached $27.2 billion in 2023 and is projected to hit $97.85 billion by 2034, with a CAGR of 14.15%
The US dominates with 70% of global lab grown diamond jewelry sales, reaching nearly $9 billion in 2024
Lab grown diamonds now account for 14% of the US jewelry market in 2024
Etsy leads the opportunity landscape with custom engagement rings scoring 9/10, capitalizing on the platform's artisan positioning
Prices have declined 13.80% over the past year and are 86% lower than natural diamonds
Jewelers achieve 60-70% gross margins on lab grown diamonds vs. 40-45% on natural diamonds
60% of lab grown diamond purchases in 2023 were made online vs. 45% for natural diamonds
The lab grown diamond market presents significant opportunities for online sellers, particularly in affordable jewelry segments targeting millennials and Gen Z consumers who prioritize ethics and value.
What Are Lab Grown Diamonds?
Lab grown diamonds are made in laboratories and factories using techniques such as High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). They are identical to natural diamonds in composition and appearance but are produced in controlled environments with constant monitoring and quality control.
Product Categories & Popular Brands:
Based on market analysis, the main product segments include:
Jewelry Categories:
Engagement rings and wedding bands (largest segment)
Stud earrings and fashion earrings
Pendants and necklaces
Tennis bracelets and fashion bracelets
Loose diamonds for custom settings
Popular Brands Identified:
Established Players: James Allen, Brilliant Earth, Blue Nile
Lab-Grown Specialists: Clean Origin, Diamond Foundry
Traditional Jewelers: Pandora (fully transitioned to lab grown), Kay Jewelers
Emerging Brands: COLUXE, Candere
Marketplace Opportunity Analysis - Where’s the best place to sell?
Legend
Opportunity Score Range: 1-10 scale where 10 represents high buyer demand/sales volume with low seller competition (highest success probability), and 1 represents low buyer demand with high competition (lowest success probability)
| Marketplace | Opportunity Score | Product Segment | Est. Weekly Unit Sales | Est. Weekly Revenue | Average Price Range | Key Success Factors |
|---|---|---|---|---|---|---|
| Amazon | 7 | Stud Earrings | 800-1,200 | $240K-$480K | $200-$800 | Strong SEO, competitive pricing, Prime eligibility |
| 5 | Engagement Rings | 400-600 | $800K-$1.5M | $1,500-$4,000 | IGI/GIA certification, professional photos, reviews | |
| 8 | Fashion Pendants | 600-900 | $180K-$360K | $150-$600 | Trendy designs, gift-ready packaging, seasonal marketing | |
| eBay | 8 | Loose Diamonds | 300-500 | $150K-$400K | $400-$1,200 | Certification documents, detailed specifications, auction format |
| 6 | Vintage-Style Rings | 200-350 | $200K-$525K | $800-$2,000 | Unique designs, storytelling, collector appeal | |
| Etsy | 9 | Custom Engagement Rings | 150-250 | $300K-$750K | $1,800-$4,500 | Handcrafted appeal, personalization, ethical messaging |
| 8 | Artisan Earrings | 400-600 | $120K-$240K | $200-$600 | Unique designs, artisan story, sustainable materials | |
| Walmart Marketplace | 4 | Budget Jewelry Sets | 300-450 | $45K-$90K | $80-$300 | Competitive pricing, bulk orders, fast shipping |
| Shopify Stores | 7 | Bridal Collections | 100-200 | $200K-$600K | $1,500-$5,000 | Brand building, SEO, social media marketing, customer service |
Buyer Demand and Keyword Trends Analysis
Primary Buyer Personas:
1. Millennial Couples (Ages 28-42)
Values: Ethical sourcing, sustainability, and affordability
Key Features Sought: IGI/GIA certification, conflict-free origin, customization options
Spending Range: $1,500-$4,000 for engagement rings
Shopping Behavior: Extensive online research, price comparison, reviews-driven
2. Gen Z Consumers (Ages 18-27)
Values: Social consciousness, transparency, unique designs
Key Features Sought: Trendy styles, colored diamonds, sustainable production
Spending Range: $200-$1,500 for fashion jewelry
Shopping Behavior: 42% of Gen Z purchases made online, social media influenced
3. Self-Purchasing Women (Ages 25-45)
Values: Self-expression, quality, value for money
Key Features Sought: Versatile designs, daily wear durability, gift-ready packaging
Spending Range: $300-$2,000 for fine jewelry
Shopping Behavior: Brand conscious, seek educational content
Google Trends & Search Volume Data:
Based on research findings, key search terms show strong growth:
High-Volume Keywords:
"lab grown diamonds" - Peak interest in 2024
"lab created engagement rings" - Google search interest increased from 36% to 100% over the past decade
"synthetic diamond jewelry" - Steady growth
"ethical diamonds" - Rising trend
Long-tail Opportunities:
"IGI certified lab diamonds"
"affordable engagement rings under $2000"
"lab grown diamond stud earrings"
"conflict free diamond jewelry"
Seasonal Patterns:
Peak Season: November-February (engagement/wedding season)
Secondary Peak: April-June (graduation/Mother's Day)
Steady Demand: Year-round for stud earrings and fashion jewelry
Disruption is Opportunity
The traditional diamond industry, led by De Beers, faces what industry analysts describe as an existential challenge. "This is kind of an inflection point for the diamond industry," said Golan. After all, diamond mines are costly to run and mined diamonds can't really compete with lab-grown on size, clarity or price. De Beers and other mining companies are now attempting to reposition natural diamonds as luxury status symbols—similar to how Rolex maintains premium pricing despite the availability of accurate, affordable timepieces.
For online marketplace sellers, this industry disruption represents a massive opportunity. The data shows that lab grown diamonds have captured 14% of the US jewelry market in just a few years, with online sales representing 60% of all lab grown diamond purchases. The convergence of several factors creates an ideal environment for sellers:
Market Tailwinds:
Declining wholesale prices improving seller margins
Growing consumer acceptance, especially among millennials and Gen Z
Strong online purchase preference for lab grown diamonds
Ethical and sustainability messaging resonating with target demographics
Platform Opportunities: Our analysis reveals that Etsy leads the opportunity landscape with custom engagement rings scoring 9/10, capitalizing on the platform's artisan positioning and the lab grown diamond market's emphasis on ethical sourcing and personalization. Amazon and eBay offer strong volume opportunities in specific segments, while Shopify enables direct-to-consumer brand building.
Strategic Implications: The traditional diamond industry's struggles don't spell doom—they signal transformation. Just as the music industry evolved from physical media to streaming, the diamond industry is evolving from scarcity-based natural mining to technology-enabled lab production. Early movers in the online lab grown diamond space are positioning themselves advantageously in a market projected to reach $97.85 billion by 2034.
The question for potential sellers isn't whether lab grown diamonds will succeed—the data shows they already have. The question is how quickly entrepreneurs can establish their presence in this rapidly expanding market while wholesale prices remain favorable and consumer education continues to drive adoption.
As one industry observer noted in recent coverage of the diamond market disruption: the companies that survive and thrive will be those that embrace the new reality rather than fight it. For online marketplace sellers, that reality is an opportunity measured in billions of dollars.