Why are lab-grown diamond prices falling while demand stays strong?

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Why are lab-grown diamond prices falling while demand stays strong?

Posted on October 25, 2026by test111

Talk · Buying & Value

QThe questionEditorial scenario written by the ZKZ team. Not a customer post.

A reader notices that lab-grown diamond prices keep dropping even though more people are buying them, and asks why.

ZKZ Editorial TeamMain answer · Product & gemmology desk

Trade reports published in April and July 2026 say demand for lab-grown diamonds continues to grow while wholesale prices keep falling, with inventory rising faster than sales. That is one analyst view, and we could not verify the causes independently, but it fits what many shoppers see.

What the report says

Fact JCK, a jewelry trade publication, reported on 21 April 2026 that, according to analysts it cites, wholesale prices for lab-grown diamonds declined 14% in the first quarter of 2026, a downward trend that, an analyst says, has "no clear floor yet".

Fact The same report says the sharpest drops were for larger stones, with 3 ct round diamonds down 28% compared with a 15% decline for 1 ct rounds, and that lab-grown consumers are buying bigger and trading up.

Fact A later JCK report (8 July 2026) says wholesale lab-grown prices fell an average of 13% year-over-year in the second quarter, that the market is showing signs of stabilization, that the wholesale price of 1 ct rounds rose 1% in the quarter, and that total sales of lab-grown jewelry at US specialty retailers rose 24% in the quarter, driven by higher unit sales.

Fact It says the ratio of lab-grown inventory to sales rose from "the high single digits" in 2020 to nearly 50%, that sell-through has slowed, and that this raises the risk of a "bullwhip effect" if demand softens.

What this means for a buyer

Our advice Do not assume that today's price is a floor or a ceiling. If you are buying a stone you will keep for years, buy for the design and the quality rather than as an investment.

Our advice Compare current prices from more than one seller and check the report on each stone.

It depends Wholesale prices are not the same as retail prices, and retail may move more slowly or by different amounts.

How to shop in a falling market

Our advice When prices are changing, ask each seller how long a quote is valid, and avoid paying a deposit that cannot be refunded if the price drops before delivery. Keep a record of what you saw and when. A lower price later does not make an earlier purchase a mistake if the piece suits you, but it is worth knowing the policy for price adjustments, which some sellers offer for a short period after purchase.

Uncertain We did not verify retail price changes, the reasons for the trend, or any forecast. The figures above are wholesale percentages quoted by JCK for the first half of 2026 only.

Sources

Fact = stated by the cited source. Our advice = editorial recommendation. Uncertain / it depends = limits of what can be said in general.

Other perspectives from the ZKZ team

SOZKZ Editorial TeamSourcing & buying perspective

We would not assume that wholesale changes reach every retail price. Ask a seller how recently they updated prices and compare several listings.

SEZKZ Editorial TeamSelection perspective

If you are choosing between a stone now and later, remember that there is no way to know the timing. Buy when the piece suits you, and choose quality over size.

COZKZ Editorial TeamDisclosure & compliance perspective

Do not describe a stone as an investment or promise a resale value. The trade report itself describes falling prices and rising inventory.

Have a different question? Ask our team, or browse more answers in Talk.

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