*Please be aware: In this article, the terms “lab-grown”, “synthetic”, and “man-made” are used interchangeably, all referring to the same concept.

One of the most common questions jewellers in South Africa (and the world) receive is “What’s the price of a lab-grown diamond? Are they much cheaper than natural diamonds?”. Lab-grown diamonds have soared in popularity across South Africa, and most questions centre around their price point and legitimacy. The reality is that lab-grown diamonds are being sold at significantly higher prices than they should be, and some retailers’ profit margins verge on the criminal. On average, lab-grown diamonds are 74% cheaper right now (April 2025) than they were in 2020. But why have prices dropped so much, and what is a reasonable current price? Let’s rewind the clock a bit…

The first lab-grown diamond was created in 1953 by Erik Lundblad and the Swedish company ASEA using a High-Pressure, High-Temperature (HPHT) technique. Within a very short time frame, General Electric and De Beers were growing their own synthetic diamonds. These bright yellow cuboctahedral crystals were used exclusively in industrial applications, and gem-quality synthetic diamonds were a distant dream.

Lab-grown synthetic diamonds

Lab-grown industrial quality diamonds showing trade-mark bright yellow colours, with cubo-octahedral crystal shapes.

As the 1980s approached, scientists refined the Chemical Vapor Deposition (CVD) method, a process that showed promise for creating purer, high-quality lab-grown diamonds. By the early 2000s, the successful development of near-colourless synthetic diamonds meant that it was only a matter of time before they were marketed for the jewellery industry.

Prices of lab-grown diamonds have dropped drastically and severely in the last 10 years. From an industry perspective, few experts could have predicted how committed India and China were to mastering the mass production of lab-grown diamonds and, subsequently, how the over-supply of these synthetic stones would flood the marketplace.

Current estimates indicate that as of 2023, China is producing 50-60% of the world’s lab-grown diamond supply, with India accounting for 15%. The global lab-grown diamond supply is expected to increase to over 25 million carats in 2025. To compare, global natural diamond production in 2023 was 111.5 million carats (includes both gem and industrial quality diamonds).

 

 

As is the case with any product, the more abundant it is and the more easily available it is, the cheaper it will be, and this is exactly where the industry now sits with lab-grown diamonds. Supply is unlimited, and even though lab-grown diamonds now account for 50% of the USA engagement-ring market by volume, there is still an over-supply.

Now that we understand why synthetic diamond prices have dropped so much, let’s look at what you can reasonably expect to pay for lab-grown diamonds in South Africa. The table below shows some actual and estimated prices for lab-grown diamond rings across 3 different online jewellery stores and an independent boutique jewellery store.

Comparison of lab-grown diamond prices in South Africa

 

As you can see, prices vary significantly across the 4 jewellers analysed. Right now, most jewellers are making substantial profit margins on lab-grown diamonds, much more than the profit margin on natural diamonds. If a jeweller is trying to convince you to purchase a lab-grown diamond instead of a natural diamond, take a moment to question why. According to data produced by industry expert Paul Zimnisky, retail jewellers in the US are currently working on margins of 84% for lab-grown diamonds.

 

At Katannuta Diamonds, our preference will always be natural diamonds, but there is a role for lab-grown diamonds. We believe in offering fair value in the industry, and our Katannuta Diamond prices on the rings above would be less than those of the jewellers we researched. Our estimates indicate that some South African jewellers have markups of over 400% on the wholesale price of lab-grown diamonds.

We have access to significant quantities of lab-grown diamonds in various sizes, shapes and colours. Fancy colour lab-grown diamonds (such as pinks, blues and yellows) are also readily available. Make sure you are not being ripped off when buying a lab-grown diamond ring in South Africa, and contact us for a competitive quote in a custom-made ring.

4ct pear-cut lab-grown diamond ring South Africa