Lab-grown diamonds shine bright in Australia as affordability fuels booming demand

Diamonds are forever — and now they’re for everyone.

The jewellery world is having a sparkly shake-up, with lab-grown diamonds firmly claiming centre stage.

The Global Diamond Trade Organisation recently revealed the current retail market share in Australia is between 50–60 per cent in favour of lab-grown diamonds and could reach as much as 70 per cent by the end of 2026.

For Perth jeweller Julie Reany, owner of Hope Diamonds, the shift has been years in the making. Ms Reany, who has worked in the diamond industry for 18 years, admits she was initially sceptical.

“It was probably about six or seven years ago that I first heard about lab grown and when I first heard about them I had quite a negative reaction,” she said.

“I thought they’re not real. I’m not interested. This is an inferior product.”

“But when they started coming out, probably about three or four years ago, the quality was actually really good... you couldn’t tell the difference and clients starting demanding them.”

Ms Reany said lab-grown diamonds were first embraced for sustainability reasons but today demand is primarily driven by affordability.

“I think that five years ago it was a sustainable choice and I think now it’s purely a price choice,” she said.

“Young girls have grown up with their heart set on and dreaming about certain designs, now they can get them without the huge price tag, it’s wonderful.”

The contrast in price between lab-grown and mined diamonds is as striking as the stones themselves.

“If you’re looking for a really nice quality one carat mined diamond, you’re probably going to pay around $7,000 or $8,000 at the moment, if you want to get it in the lab grown, you’ll be paying under $500,” she said.

“A two carat might only be $750 in a lab where as a two carat in a mined is going to be between $20,000 and $25,000.”

The shift has ushered in a more relaxed, joy-filled engagement ring shopping experience for young couples.

“The relief on the guys face usually tells it all,” Ms Reany said.

“They’re young, and they’re in love, and they want their partner to be really happy. So when they come in and they can see that their partner’s getting exactly what she wants, and he doesn’t have to pay so much it’s a relief.”

Engagement rings are scaling up, with larger stones fast becoming the new normal

“People usually buy two carat plus, they don’t go under, so you’re seeing a lot more bigger rings out there,” she said.

In the past 18 months, Ms Reany said lab-grown diamonds have also surged in popularity beyond engagements, appealing to customers of all ages.

“I also now deal with a lot of milestone birthdays and anniversary presents and it’s not just the younger generation its the older generation as well,” she said.

“They’re looking to labs as a very affordable option in things like tennis bracelets and tennis necklaces, that sort of thing used to be quite rare, and we didn’t sell a lot of them, but now we’re selling a lot more.”

She said diamond stud earrings are also shining brighter than ever.

“People used to have to settle for a smaller stud than they wanted, and now they can afford something a bit bigger and bolder,” she said.

Among those embracing lab-grown diamonds are 21-year-olds Jack and Sarah Leenaars, high school sweethearts who have been together for six years.

Jack recently proposed with a lab-grown diamond ring at the bottom of Lesmurdie Falls in Serpentine.

“It was a complete surprise for me,” Ms Leenaars said.

“The ring is perfect. I have nothing to complain about. It’s beautiful and shimmers so much and the clarity is really good as well. I would never know the difference.”

Ms Leenaars said she had her engagement ring design in mind from a young age, with lab-grown diamonds making her dream ring achievable.

“I’ve had a Pinterest board since I was 15,” she said.

“My mum actually has like three diamonds in her ring and I’ve always just loved it because it was just so simple and I always knew I wanted something not too bulky.”

She described choosing a lab-grown diamond as a “no brainer”.

“I did voice that to Jack... I said, ‘save the money and get the lab grown diamond’, it makes so much sense and it’s still just as good,” she said.

“At first he wanted to get a real diamond because there’s the hype around it being real, but I said to him, it really doesn’t mean anything to me the fact if it’s real or not.

“I’m glad he took that on board because it would have saved a lot of money and it looks the exact same, there’s no difference.”

Jack said the price of the ring took him by surprise.

“I was pretty shocked by the relatively low price for the ring,” he said.

“To be honest, I was expecting to have to pay a lot more on a ring.”

Leading Perth stylist Bridget Hudson agreed that affordability is the key driver behind the growing popularity of lab-grown diamonds.

“Affordability would be primary reason for the surge in popularity of lab-grown diamonds right now,” she said.

“Lab-grown diamonds can be significantly cheaper than mined stones allowing buyers to get larger stones for less money.”

Ms Hudson said Millennials and Gen Z purchasers were leading the shift.

“Millennials and Gen Z purchasers tend to see lab-grown diamonds as just as beautiful and often preferable because they align with their values around sustainability and price,” she said.

“In a world where aesthetics are more important than ever, having access to larger, more affordable diamonds is a game changer for budget conscious customers.

“With the rise in cost of living, younger couples in the engagement ring sector can get the ‘luxury’ look within their budget.”

While mined diamonds will retain their place in the market, Ms Hudson said lab-grown stones are likely to dominate the future.

“There will always be a market for natural diamonds due to their exclusivity, status and rarity, but it’s great to have an alternative option for those who are open to it,” she said.

“It’s highly likely that in say 20 - 30 years that lab- gown diamonds will become the default diamond option, with natural mined diamonds repositioned to be marketed as premium, rare, collectible items.”

The trend is already visible on the world stage.

At the recent Grammy Awards, singer Tyla layered more than 100 lab-grown diamonds, wearing a custom 14K white gold collier set with 116 stones totalling 11.6 carats.

PinkPantheress also wore lab-grown diamond jewellery, including a 14K white gold necklace set with 68 carats of diamonds and a matching ring.

Other celebrities known for wearing lab-grown diamonds at major events include Emma Watson, Miley Cyrus, Lady Gaga and Millie Bobby Brown.