Lab-grown vs natural diamonds: A guide to making an informed decision

The sparkle of a diamond has long held a special place in Indian homes, where it is cherished as more than just a gemstone. It represents a story passed down through generations, a symbol of love, and a reminder of lasting legacies. Every natural diamond, formed deep within the Earth under heat and pressure, develops individual characteristics. These gems have been valued, traded over centuries, often passed on as heirlooms from one generation to the next.

Beyond their emotional appeal, natural diamonds also have economic significance. A natural diamond’s value can grow over time, even with market ups and downs. According to a report by Bain & Company, diamond prices have reportedly risen by an average of 3 per cent year on year over the past 35 years. India’s connection to natural diamonds runs deep – as of 2024, the country is one of the top exporters of natural diamonds, processing 90 per cent of the world’s diamonds and providing employment to millions in the diamond trade.

But not all diamonds are formed naturally. The world of diamonds also includes lab-grown diamonds. These diamonds are created in laboratories within a few weeks using advanced technology that replicates the natural process of formation.. The global natural diamond recovery peaked in 2005, even as the global lab-grown diamond industry is expanding – it is valued at about $22 billion.

Over the years, there has been a lowering of prices for lab-grown diamonds. Prices have declined as technology has advanced and production has scaled, making these diamonds more affordable and accessible to consumers. Data from analyst Paul Zimnisky, who has tracked prices for a sample of lab-grown stones for the last 10 years shows that the price of a 1.5 carat laboratory- grown stone has fallen 86 per cent from $10,750 in mid-2015 to $1,455 in mid-2025.

Zimnisky has also been tracking the prices of natural diamonds since 2007 and while they are currently below the peaks seen after the pandemic, they are still 37 per cent higher than in 2007, equivalent to an average annual growth rate of 3% per annum.

The science behind the sparkle

Lab-grown diamonds are usually made using one of the following two methods. The Chemical Vapor Deposition (CVD) process involves putting tiny diamond seed crystals into a chamber filled with gas and heated to very high temperatures (900-1,200°C). Over several weeks, carbon from the gas settles on these seeds, creating new layers of diamond.

The other method, High-Pressure, High-Temperature (HPHT), copies the natural way diamonds form. It places a diamond seed into a container under intense heat (1,300-1,500 °C) and pressure (870,000 pounds per square inch). In this controlled setting, melted metal dissolves a pure carbon source, and carbon atoms then stick to the seed crystal, making the diamond grow. While lab-grown diamonds can closely resemble natural ones in appearance, they share the same physical and chemical composition, differing mainly in origin and age.

Tracking carbon footprints

Producing lab-grown diamonds requires high energy use. Both the CVD and HPHT methods depend on extreme temperatures and a continuous power supply of energy. They also use a good amount of water for cooling systems. Keeping the factory environment stable for growing diamonds also uses up energy. Since India and China together produce 72 per cent of the world’s lab-grown diamonds, and their power grids mostly run on coal (74 per cent for India, 62 per cent for China), a large part of lab-grown diamonds often carry a carbon footprint from their creation.While their energy consumption may be high, ongoing technological improvements and renewable energy adoption are helping make production processes more efficient.Though not extracted from the Earth, lab-grown diamonds rely on mining for raw materials, machine components and coal-based power, making their overall environmental impact an area of continued improvement and innovation.

In FY2024, the country reportedly produced 16 million carats of lab-grown diamonds, using 921 Mn KWH of energy from the grid (a majority of which is sourced from coal). In effect, creating 1 carat of lab grown diamonds could consume an estimated 77 kWh of electricity on an average, which equals the monthly demand of power in an Indian home.

Are natural diamonds mining-free?

The natural diamond industry actively invests in giving back to the Earth through sustainable practices. 84 per cent of the water used in diamond recovery is recycled, and the industry regularly reports that no chemicals are used in the process. While mining does change the landscape, there are plans to restore the land, which are agreed upon with local governments. The land might look different, but mine closure plans help make the land usable for communities again. The industry also protects about four times the land they use for mining to support biodiversity and wildlife.

The natural diamond industry is working towards sustainability, not just in terms of using resources but also restoring them. Large-scale natural diamond producers such as De Beers Group and Rio Tinto aim to become carbon neutral by 2030 and achieve net-zero emissions by 2050 respectively.Their strategies involve incorporating renewable and alternative fuel sources into mining operations while also exploring synthetic fuels and biofuels. Natural diamond companies are also researching innovations in carbon capture, such as through the mineralisation of the kimberlite rock from which diamonds are recovered.

India’s diamond industry also focuses on environmental conservation and community welfare. In Surat, India’s diamond industry is addressing the water crisis through large-scale water conservation efforts. Hari Krishna Exports and Shree Ramkrishna Exports are some companies who have rejuvenated rivers, built dams and lakes – restoring large volumes of water and therefore also supporting communities. These initiatives are supporting farming, health and reflect the diamond industry's efforts toward community and the environment. In fact, Shree Ramkrishna Exports has also reported achieving a negative carbon footprint per carat.

Seeing the difference: How can you tell them apart?

Natural diamonds, formed over billions of years, portray characteristics from their geological journey. They often contain nitrogen, found in most natural diamonds, which is usually not present in lab-grown diamonds. Gemologists can use lab equipment to spot these subtle differences in how they grew, their composition, how they react under certain lights, and their light patterns.

When just the word “diamond” is used, it usually means a natural diamond. Lab-grown diamonds, on the other hand, are clearly labelled with terms like “synthetic diamonds”, “laboratory-grown diamonds”, or “laboratory-created diamonds”. These labels are used for clear identification, ensuring transparency between both types.Both types of diamonds come with certificates. Top labs like the Gemological Institute of America (GIA), IGI, and GSI provide reports for both kinds of diamonds, and the reports for lab-grown ones state that the stone was created in a lab. The GIA recently announced that it will no longer use its 4Cs grading system for lab-grown diamonds, which will be categorised as ‘premium’, or ‘standard’.

Making an informed choice

In an era defined by rapid technological changes, the jewellery industry is also evolving and offering more options. But choice must come with understanding.

Natural diamonds continue to represent rarity and individuality, while lab-grown diamonds provide an alternative with accessibility. They differ in origin, production, and environmental impact, but both hold value depending on personal preference. Ultimately, each appeals to different sensibilities – one rooted in natural formation, the other in modern innovation.

Understanding these differences empowers consumers to make choices that align with their style, budget, and beliefs. Whether natural or lab-grown, every diamond carries meaning and personal value.

Learn more about how lab-grown diamonds differ from natural diamonds here.

Note to readers: The information and images in this article have been provided by the Natural Diamond Council.