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December 5, 2023Anticipated Growth in the Lab-Grown Diamonds Market is our today’s topic. The lab-grown diamonds market has experienced substantial growth, reaching a valuation of $22.3 billion in 2021. Future projections paint an even more promising picture, with the industry expected to hit $55.6 billion by 2031, demonstrating a noteworthy Compound Annual Growth Rate (CAGR) of 9.8% from 2022 to 2031.
Anticipated Growth in the Lab-Grown Diamonds Market
In 2021, the global lab-grown diamond sector showcased its resilience, generating $22.3 billion. Forecasts indicate a doubling of this figure by 2031, reaching $55.6 billion, underlining a robust CAGR of 9.8% during the forecast period. Driving factors behind this growth include an escalating demand for trendy diamond jewelry, strategic adoption by various industries seeking cost-effective alternatives, and an increasing embrace of artificial diamonds within the realms of fashion and jewelry. Despite facing challenges such as consumer misconceptions, the industry envisions heightened adoption, particularly in fashion, jewelry, and expanding roles in industrial applications, offering promising opportunities in the near future.
The dominance of lab-created diamonds below 2 carats remains pronounced, constituting over two-thirds of the global market share in 2021. Forecasts indicate that this dominance will persist in revenue terms from 2022 to 2031, with this segment expected to achieve the fastest CAGR of 10.2% during the forecast period. The popularity of lab-grown stones below 2 carats, widely utilized in jewelry and industrial tool production, remains a key driver for this segment’s prominence.
The Chemical Vapor Deposition (CVD) manufacturing method retained its leadership position in 2021, contributing over half to the global cultured diamonds market. Forecasts suggest that this segment will maintain its dominance throughout the forecast period, with an anticipated CAGR of 10.4% from 2022 to 2031. The widespread adoption of CVD technology for diamond creation underscores its pivotal role in the market.
In terms of applications, the fashion segment emerged as the leader in 2021, capturing nearly three-fourths of the global lab-created diamonds market. Forecasts indicate its continued dominance, with the segment expected to achieve the fastest CAGR of 10.0% from 2021 to 2031. The utilization of smaller lab-grown diamonds as accents in designer clothing, purses, watches, and eyewear frames propels growth in this segment.
Regionally, North America claimed a significant market share in 2021, contributing almost two-fifths to the global lab stones market revenue. This is attributed to the widespread adoption of lab-grown diamond jewelry in the region. However, the Asia-Pacific region is anticipated to witness the fastest CAGR of 11.2% by 2031, driven by improving living standards, rising disposable income, and an increased demand for jewelry in the region.
