Web Desk: China’s fast-growing lab-grown diamond industry is accelerating its challenge to the natural gemstone market, with one of the country’s leading manufacturers forecasting a near tripling of first-half profit as demand for synthetic stones gains momentum worldwide.
The shift in consumer preferences has intensified pressure on traditional diamond producers. De Beers, one of the world’s largest diamond companies, has suspended production at South Africa’s Venetia mine for two years as part of a cost-cutting strategy, citing prolonged weakness in the natural diamond market as the industry undergoes structural change.
Power Diamond, a major producer based in central China’s Henan province, expects net profit attributable to shareholders to reach between 80 million yuan ($11.2 million) and 93 million yuan during the first half of 2026, according to a July 10 filing with the Shenzhen Stock Exchange. That would mark nearly a threefold increase from the same period a year earlier. The company also projected revenue of about 450 million yuan, almost double last year’s level.
It attributed the stronger performance to advances in manufacturing technology and robust export growth. Consumer demand drives market expansion The growing popularity of lab-grown diamonds reflects changing consumer priorities, with buyers increasingly opting for lower-priced stones that are chemically and physically identical to natural diamonds.
Industry estimates place the global lab-grown diamond market at about 127.2 billion yuan ($18.8 billion), with the United States accounting for the largest share of demand. Fortune Business Insights projects the market will expand from $25.89 billion in 2024 to $74.45 billion by 2032. China has emerged as the dominant producer and is expected to account for nearly two-thirds of global lab-grown diamond output by 2030.
Most domestic production is concentrated in Henan province, which has developed into the country’s manufacturing hub for synthetic gems. Trade data underline the industry’s rapid growth. According to the Gems & Jewelry Trade Association of China, the country’s imports and exports of rough lab-grown diamonds reached $122.96 million in 2024, up 82.11% from a year earlier.
Trade in finished lab-grown diamonds climbed 78.09% to $194.6 million. Output rises on manufacturing advances Industry executives said technological improvements have enabled Chinese manufacturers to scale production while maintaining quality.
Lab-grown diamonds are produced either through high-pressure, high-temperature methods that replicate the conditions under which natural diamonds form or through microwave plasma-assisted chemical vapor deposition, according to Li Jianhua, chief technology officer of the diamond division at Henan Huanghe Whirlwind Co. Ltd.
Unlike natural diamonds, which require millions of years to form, a one-carat lab-grown diamond can be produced in roughly one week. Manufacturers say continued advances have allowed China to achieve large-scale production with consistent quality standards. The country’s production reached about 22 million carats in 2024, a 144.44% increase from the previous year, representing 63% of global output, according to the 2024 report on the development of China’s jewelry industry.
Younger buyers fuel demand Changing buying habits, particularly among younger consumers, are also reshaping the market. Lab-grown diamond jewelry has gained popularity across Chinese social media and e-commerce platforms, including Xiaohongshu, Weibo and WeChat. Some specialist stores on Taobao have reported sales exceeding 1 million yuan, while discussions related to lab-grown diamonds on Weibo have attracted nearly 19.6 million views.
Industry executives said younger consumers increasingly view the products as affordable fashion accessories rather than long-term investments. “More consumers are purchasing jewelry for self-expression and personal style,” said Guo Tianying, market development manager at the Zhengzhou Lab-grown Diamond International Trading Center.
Industry faces structural challenges Despite rapid expansion, industry leaders said several obstacles remain. Liu Yongqi, president of the lab-grown diamond branch of the Gems & Jewelry Trade Association of China, said uneven development across the supply chain and limited consumer awareness continue to constrain broader market penetration.
Meanwhile, Li Jianhua said China has established a strong position in upstream manufacturing but still lags in cutting and polishing, limiting value creation further along the production chain.
Industry experts have called for greater collaboration between manufacturers and processors, investment in advanced polishing technologies, expanded automation and stronger workforce development to improve competitiveness.
The Zhengzhou Airport Economy Zone is developing the Zhengzhou Lab-grown Diamond International Trading Center, aiming to simplify customs procedures and strengthen the city’s role as a distribution hub for domestic and overseas markets. “Building on the foundation of the superhard materials industry, China’s lab-grown diamond sector has achieved rapid growth,” Liu said. “Although challenges remain, the industry is well positioned to continue expanding with support from both government policy and market demand.”
Read more: Apple to launch first foldable iPhone, iPhone 18 Pro soon
