Lab-Grown vs. Natural Diamonds: What You Need to Know in 2025

For centuries, diamonds have been treasured as one of Earth’s most beautiful creations; emblems of rarity and the ultimate symbols of eternal love. But in recent years, another gem has entered the conversation: the lab-grown diamond. At first glance, the two appear almost identical: both crystallized carbon with the same hardness and brilliance. Yet beneath their polished facets, hide very different stories.

In this article, we’ll explore:

How lab-grown diamonds are made
The key differences between natural diamonds and lab-grown diamonds
Why the synthetic diamond market remains unstable
Recent developments for buyers to consider in 2025.

How Are Lab-Grown Diamonds Created?

Currently over 70% of lab-grown diamonds are produced in factories located in China and India.

There are two main processes for creating synthetic diamonds:

1. HPHT (High Pressure, High Temperature)
This older method tries to simulate the extreme conditions under which natural diamonds formed millions of years ago. A small diamond seed is subjected to intense pressure and heat, causing carbon atoms to crystallize around it. The HPHT process can produce large diamonds relatively quickly, but the resulting stones often present metallic inclusions, an unmistakable identifier of the synthetic material.

2. CVD (Chemical Vapor Deposition)
This is a newer and increasingly popular method. Here, a thin slice of diamond seed is placed in a special chamber filled with carbon-rich gas. The gas is activated into plasma, depositing carbon atoms onto the seed layer by layer. CVD diamonds can be grown with fewer metallic inclusions, though they sometimes display strains not seen in natural stones.

The manufacturing process of lab-grown diamonds is a very energy and water-intensive one, as it requires temperatures above 1,093°C to produce the diamonds and then a large volume of water to cool off the reactors.

How Similar Are They to Natural Diamonds?

Although both methods produce diamond material (crystallized carbon), gemological laboratories can easily detect them, often in minutes, thanks to distinct growth features visible with advanced instruments. With the correct instruments several indicators such as spectral signature, presence of fluorescence, composition(presence of carbon or not), and graining patterns can be checked and confirm if the stone is natural or lab grown.

While a synthetic diamond may fool the naked eye, its origin cannot be hidden from professionals. Visually, a well-cut lab-grown diamond looks just like a natural diamond. Afterall, they share the same hardness, brilliance, and fire. However, their growth patterns, fluorescence, inclusions, and spectroscopic features reveal their true origin.

The Price Collapse of Lab-Grown Diamonds

When lab-grown diamonds first entered the market a decade ago, they were marketed as ethical, sustainable, and less expensive alternatives to natural diamonds. Prices were often 20–30% lower than comparable sized natural stones.

Fast-forward to 2025: those same stones now sell at a fraction of their launch prices. Manufacturing capacity has grown so much that lab-grown diamonds are now mass-produced at extremely low cost. Wholesale prices have fallen dramatically, leaving many early buyers with gems worth far less than they paid. Analysts have found that the wholesale price for a 1ct round near colourless VS1 lab-grown diamond has fallen 95% when compared to 2018, and its retail price is only 24% of what it was 7 years ago. (NDC report)

In some categories, lab-grown diamonds now sell for less than 20% of the price of natural equivalents. This price freefall creates major problems for consumers who thought they were making a smart investment. Unlike natural diamonds, which maintain rarity through geological scarcity, synthetics can always be manufactured in greater numbers, ensuring downward price pressure.

GIA’s Recent Change in Grading

In August 2025, the Gemological Institute of America announced it will no longer provide specific nomenclature for laboratory-grown diamonds. Instead, the new report will offer a more generalized description, simply labeling the stones’ quality as “Premium” or “Standard.” This is a significant departure from how natural diamonds are certified, where precise Color and Clarity grades are essential to valuation.

By revising the way laboratory-grown diamonds are described, GIA emphasizes its posture to reduce confusion between natural and synthetic diamonds, reinforcing the idea that only natural diamonds deserve the detailed grading framework. For buyers, this means lab-grown reports now look fundamentally different from natural reports, underlining the divide between the two.

The Uncertain Future of the Lab-Grown Market

The lab-grown diamond industry is worryingly unstable, facing increasing oversupply, transparency issues, and even energy concerns that seem to contradict the sustainability claims.

Initially marketed as the cheaper, smarter alternative for engagement rings, lab-grown diamonds today are following a different trend. Their poor resale value is leading them towards the so-called demi-fine jewelry market. Gold-plated brass, 9 kt gold, and vermeil are slowly but surely becoming the materials of choice to embellish with synthetic diamonds. Attracting younger generations with shiny designs for less, demi-fine jewelry is regarded as an entry point that may eventually lead customers into the world of fine jewelry as their taste matures.

What About Fancy Color Lab-Grown Diamonds?

One of the most fascinating aspects of natural diamonds is they can present rare and vivid colors such as blue, pink, and green. Fancy color diamonds are incredibly scarce and valuable, many times commanding prices higher than the finest colorless diamonds.

Laboratories have attempted to recreate these coveted colors, but results continue to be limited. Lab-grown color diamonds tend to be smaller, less saturated, and often require additional enhancement treatments.

Natural Color Diamonds Are The Way To Go

Fancy color diamonds are not just gemstones, they are geological miracles, formed over millions of years ago under unique conditions that cannot be replicated. Their scarcity is genuine, and their power as a store of value, undeniable.

Lab-grown diamonds, by contrast, are products of technology. While they may serve as budget-friendly options for fashion jewelry, they lack the rarity, and value of natural stones.

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For buyers in 2025, the argument for natural diamonds is unmatched. Lab-grown diamonds may sparkle, but natural diamonds will always out shine them in the long run.

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