DiamondBuzz
NDC’s LGD Report highlights price declines, soaring retailer margins, concerns over sustainability claims
The Natural Diamond Council (NDC) has released a comprehensive report titled ‘Laboratory-Grown Diamond Facts’ shedding light on the current state of the laboratory-grown diamond (LGD) market, highlighting dramatic price declines, soaring retailer margins, and concerns over sustainability claims.
The report draws on data from leading industry analysts Edahn Golan and Paul Zimnisky and aims to equip consumers, retailers, and the media with transparent, fact-based insights to navigate a complex and fast-evolving category.
The report notes that the average price of a 1.5-carat LGD has plummeted 86%, from $10,750 in 2015 to $1,455 in 2025. Wholesale prices for 1ct VS1 F-G-H colour LGDs have fallen 95% since 2018, while retail prices have dropped 76%. Average retail margins have jumped from 85% in 2018 to over 500% today.

“Laboratory-grown diamonds are mass-produced in limitless quantities, but their sustainability claims often lack scrutiny,” said Natural Diamond Council’s CEO, David Kellie. “Our goal is to give consumers and other stakeholders a balanced picture that will inform more nuanced conversations and help consumers confidently make informed decisions.”
The report comes at a time when LGDs are increasingly positioned as eco-friendly alternatives to natural diamonds. However, the NDC cautions that such claims can be misleading, especially given the high energy and fossil-fuel dependence of many production facilities.
Adding to the growing distinction between natural and lab-grown diamonds, the Gemological Institute of America (GIA) recently announced it will no longer use the 4Cs grading system for LGDs. Instead, the GIA will categorise LGDs broadly as “premium” or “standard”—or omit grading if quality is subpar—further underlining the need for clearer differentiation between the two products.
Kellie noted, “All too often, laboratory-grown diamonds are unfairly pitted against natural diamonds in comparisons that only leave consumers in the dark. Consumers deserve more. They need clear, honest information that will help them understand their choices. Without this clarity, the two different product categories natural and laboratory-grown diamonds will become obscured. This isn’t simply about pricing – it’s a wake-up call for greater clarity and integrity across all facets of the market.”
The NDC report also offers context on LGDs’ industrial origins, legal labelling requirements, and the role of certification bodies like GIA, IGI and GSI in ensuring proper disclosure
DiamondBuzz
India LGD Sector Is Pushing Back Against Aggressive Discounting
Trade Body, Leadership Urged Traders and Brokers To Enforce Price Floors and Eliminate Undercutting.
India’s lab-grown diamond (LGD) sector is pushing back against aggressive discounting as shrinking margins squeeze manufacturers and erode industry profitability. At a September 7 meeting of the Surat Lab Grown Diamond Association, leadership urged traders and brokers to enforce price floors and eliminate undercutting.
Raw Price Shift: Polished LGD prices recently rebounded by 20% to 25%.
Discount Compression: In response to rising costs, traders scaled back buyer discounts from ~7% to a tighter 3%–4% range.
Margin Squeeze: Association President Babu Vaghani warned that uncontrolled discounting directly erodes manufacturer earnings, forcing wage cuts and destabilizing supply chain economics.
Industry Outlook
The sector faces a structural dilemma: lower consumer prices drive adoption, but severe price erosion starves manufacturers, polishers, and labor of viable margins.
Continued downward pressure is pushing skilled labor out of the market and forcing polishing units to explore alternative industries. Stabilization hinges on widespread compliance with pricing discipline across the Surat hub.
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