Lab Grown Diamond Prices in Australia 2026: What Has Changed and Where Things Stand
Between 2020 and 2025, lab grown diamond prices fell further and faster than almost anyone in the industry anticipated. Buyers who tracked that decline are now asking a reasonable question: has the drop stopped, and what does the current market look like? This guide covers the price history, what caused the decline, where wholesale and retail prices sit in 2026, and what determines the cost of an individual stone independent of market conditions.
This is a factual overview of publicly available market data. It does not offer financial advice or predictions about future price movements.
Lab-grown diamond tennis bracelet
Where Lab Grown Diamond Prices Started
To understand where prices are now, it helps to understand where they began.
In 2018 and 2019, lab grown diamonds traded at wholesale prices exceeding $4,000 USD per carat for quality stones. At that point, the technology to grow diamonds in a controlled environment was relatively new to the commercial market, supply was limited, and the cost difference between lab grown and mined diamonds was meaningful but not dramatic.
By 2020, a 1 carat lab grown diamond averaged approximately $3,410 USD per carat at wholesale, according to research from Edahn Golan Diamond Research. Retail prices in Australia reflected that wholesale rate, with finished pieces priced in ranges that positioned lab grown diamonds as a more accessible alternative to mined stones but still at a significant absolute cost.
That was the starting point. What happened next was an unusually rapid repricing of the entire category.
Why Prices Fell So Sharply From 2020 to 2025
The decline in lab grown diamond prices was driven by supply, not demand. Consumer interest in lab grown diamonds grew steadily through this period. What grew faster was the number of producers entering the market and the volume of stones being produced.
Manufacturing capacity expanded rapidly
Chemical Vapour Deposition (CVD) and High Pressure High Temperature (HPHT) are the two methods used to grow diamonds in a laboratory environment. Both became more efficient and more widely accessible during this period. Production facilities scaled up, particularly in India and China, and the volume of lab grown diamonds reaching the global market increased substantially.
According to market data, global production capacity for lab grown diamonds grew by over 300 percent between 2020 and 2023. Supply outpaced demand growth by a significant margin, and prices responded accordingly.
Inventory built up faster than it could be absorbed
By 2023 and 2024, wholesale inventory of lab grown diamonds reached an estimated 18 to 24 months of forward demand. Producers holding excess stock faced pressure to discount in order to move it. The effect was a self-reinforcing cycle: as prices fell, buyers anticipated further falls and held off, which extended the overhang.
Producers began exiting the market
By 2024, an estimated 40 percent of lab grown diamond producers had exited the market, and surviving manufacturers cut output by approximately 35 percent in the second half of that year. This reduction in supply was a significant factor in the slowing rate of price decline that followed.
The rate of decline by year
To illustrate the trajectory: Edahn Golan Diamond Research, which publishes wholesale price data for the industry, estimated that lab grown diamond wholesale prices fell approximately 74 percent from 2020 to 2025. De Beers, which also tracks the category, estimated the wholesale decline over the same period at approximately 90 percent for some segments.
By mid-2025, some wholesale categories of lab grown stones were trading as low as USD $80 to $105 per carat. The collapse in wholesale pricing was reflected, to varying degrees, in retail markets including Australia.
Where Prices Sit in 2026
The pace of decline slowed meaningfully in 2025 and into 2026. The change is in the rate, not a reversal.
Edahn Golan's 2025 full-year data showed wholesale prices down 26 percent year on year. That figure sounds large, but the quarterly rate of decline by the end of 2025 had slowed to 4.7 percent, described as the smallest quarterly decline since lab grown diamonds entered the commercial market. The dramatic falls of 2021, 2022, and 2023 were no longer being replicated.
Separately, Draco Diamond's 2026 price trend data showed year-on-year wholesale price movement of approximately 2.6 percent downward, a material change from the double-digit annual declines of prior years. Price movement across Q1 and Q2 2026 has been described as entering a phase of relative stability, with slight fluctuations in some categories and minimal movement in others.
It is worth noting that the picture varies by stone size and cut. Three carat round stones, for example, saw steeper declines in 2025 than smaller rounds. The wholesale market is not uniform across all specifications.
Australian retail context
In the Australian retail market, a 1 carat lab grown diamond loose stone from a reputable Australian retailer is currently priced in the range of approximately $600 to $1,200 AUD, depending on cut, colour, and clarity. Finished pieces set in solid 18K gold carry additional cost for the setting, design, and certification.
These are general market figures for context. Pricing varies significantly between retailers depending on stone specifications, setting quality, and the certifying laboratory used.
The Production Cost Floor
One structural reason the rate of decline has slowed is that prices have moved close to the actual cost of producing a stone.
Growing a lab grown diamond requires energy, equipment, specialised facilities, and time. A CVD reactor capable of producing gem-quality stones is not inexpensive to operate, and the electricity cost alone is a meaningful component of the final production cost per carat. Cutting and polishing adds further cost. IGI certification — which assesses and grades the finished stone independently — adds a further cost at the retail end.
Industry estimates in 2025 and 2026 place the production cost for a lab grown diamond, including rough growth and cutting, in the range of approximately USD $300 to $500 per carat. Wholesale rough stones, by the same period, were trading at or near this range in some categories.
When wholesale prices approach production costs, producers cannot continue selling below that level without operating at a loss. This creates a practical floor. Prices can fluctuate around this level, and different production facilities with different cost structures will have different floors, but the capacity for prices to continue falling at the rate of 30 to 40 percent annually is structurally limited once this point is reached.
This does not mean prices will increase. It means the conditions that drove rapid annual price compression have changed as prices have approached the cost of production.
What This Means for the Rate of Price Movement
The question many buyers are asking is whether prices will continue to fall significantly, stabilise, or increase. The honest answer is that no single source of data can predict this with certainty, and market conditions can shift.
What the available data suggests as of mid-2026:
The year-on-year rate of decline has slowed substantially from its 2021 to 2024 peak. Some categories are showing minimal quarter-on-quarter movement. Production cutbacks from 2024 are still working through the supply chain. Prices remain meaningfully lower than they were in 2020 by any measure. The structural conditions for the sharp decline — a large supply overhang and rapidly expanding production — have changed.
This is a different market than the one that existed in 2022 or 2023. Whether prices will decline further, and by how much, remains a matter of market conditions and individual stone specifications.
What Affects the Price of an Individual Lab Grown Diamond
Market-level pricing tells you something about the general direction of the category. What determines the price of a specific stone are the individual quality characteristics recorded on the grading certificate.
Cut
Cut quality determines how efficiently a stone handles light. A well-cut diamond returns more light through its table. Cut is arguably the most important factor in how a stone appears visually and it significantly affects price. An Excellent or Triple Excellent cut grade from IGI commands a premium over Good or Very Good grades at the same carat weight, colour, and clarity.
Colour
Diamond colour is graded from D (colourless) to Z (visibly tinted). The difference in price between a D colour stone and an H colour stone at the same carat weight and clarity can be substantial. For most buyers, stones in the D to G range face up white under normal conditions, though D to F are considered fully colourless.
Clarity
Clarity describes the presence of inclusions (internal characteristics) and blemishes (surface characteristics). FL (flawless) and IF (internally flawless) stones carry significant premiums. VS1 and VS2 clarity stones are clean to the naked eye and represent a practical middle point for most buyers. VVS1 and VVS2 are between the two.
Carat weight
Price does not scale linearly with carat weight. There are threshold points at round numbers (1.00ct, 1.50ct, 2.00ct) where prices increase more sharply because demand concentrates at those weights.
Shape
At the same carat weight and quality grade, different shapes trade at different prices. Round brilliant stones typically carry the highest price per carat because of their consistent demand and the efficiency of cutting required. Fancy shapes such as oval, pear, and emerald cut often present a lower price per carat while offering more face up surface area.
The Bellari lab grown diamond solitaire necklace collection includes round brilliant, oval, pear, and emerald cut options in 18K solid yellow gold and 18K solid white gold. Each stone is IGI certified.
Lab Grown Diamonds vs Natural Diamonds in 2026: The Price Gap
The price gap between lab grown diamonds and mined natural diamonds of comparable specifications remains substantial in 2026. Mined diamond prices have been more stable over the same period, and the discount to purchase a lab grown diamond at equivalent colour, clarity, and carat weight has widened.
Estimates of the current discount vary by stone specification. For a 1 carat round, D colour, VS2 clarity stone, the price difference between a lab grown and a natural equivalent is currently in the range of 70 to 85 percent in favour of the lab grown option in most markets.
This is relevant context for buyers comparing the two categories. The mined diamond market and the lab grown diamond market have moved in different directions over the past five years. Lab grown stones are graded to identical standards by IGI and GIA, and the chemical and physical properties of the materials are the same. The differences are in origin, market price, and the historical significance some buyers attach to a mined stone.
IGI Certification and Pricing Transparency
One factor that affects confidence in lab grown diamond pricing is certification. A stone without an independent grading certificate is priced on the retailer's description of its quality. A stone with an IGI or GIA certificate is priced against an independently assessed specification.
When comparing prices between retailers or across different stones, certification makes the comparison meaningful. A price per carat figure for an uncertified stone and a price per carat figure for an IGI certified stone are not directly comparable.
Every diamond in the Bellari lab grown diamond solitaire necklace range is IGI certified. The certificate number is laser inscribed on the girdle of the stone and verifiable at igi.org.
For buyers who want to understand what an IGI certificate covers and how to read one, the Bellari guide to IGI certified diamonds in Australia covers grading methodology, colour and clarity scales, and how to verify a certificate independently.
Summary
Lab grown diamond prices fell sharply between 2020 and 2025, driven by a significant expansion in production capacity that outpaced demand growth. Wholesale prices declined by approximately 74 to 90 percent over that period depending on the segment and the data source.
The rate of decline slowed substantially in 2025 and into 2026. Quarterly wholesale price movement in late 2025 was the smallest on record, and 2026 data shows year-on-year movement of less than 3 percent in some categories. Prices have approached the practical cost of production, which limits the structural capacity for the sharp annual declines of prior years to continue.
The price of any individual stone is determined by its certified quality: cut, colour, clarity, carat weight, and shape. These factors operate independently of the broader market movement.
The Bellari lab grown diamond solitaire necklace collection is available in four cuts across 18K yellow gold and 18K white gold. Each piece is made to order, designed in Sydney, and certified by IGI. Cut-specific guides are available for the oval diamond necklace and pear diamond necklace in the Bellari journal.
Frequently Asked Questions
Have lab grown diamond prices stopped dropping in Australia?
The rate of decline has slowed significantly compared to 2021 to 2024. Quarterly wholesale price data from late 2025 showed the smallest decline on record, and 2026 data shows year-on-year movement of approximately 2 to 3 percent in some wholesale categories. Prices have not reversed direction, but the sharp annual falls of prior years have moderated as wholesale prices have approached production cost levels. Whether further declines occur depends on market conditions.
Why did lab grown diamond prices fall so dramatically after 2020?
The primary driver was a rapid expansion in production capacity that outpaced demand. Global production capacity grew over 300 percent between 2020 and 2023, and wholesale inventory reached 18 to 24 months of estimated forward demand. When supply significantly exceeds demand, prices fall. The rate of decline slowed as producers exited the market, output was reduced, and inventory levels normalised.
What is the production cost floor for lab grown diamonds?
Industry estimates in 2025 and 2026 place the cost of producing a lab grown diamond, including growing the rough stone and cutting and polishing it, at approximately USD $300 to $500 per carat depending on the production method and facility. Wholesale prices in some categories approached this range by 2025. Prices cannot fall sustainably below production cost, which is one structural reason the rate of decline has slowed.
How does the price of a lab grown diamond compare to a natural diamond in 2026?
For comparable quality specifications (same colour, clarity, carat weight, and cut grade), lab grown diamonds currently trade at approximately 70 to 85 percent below natural diamond prices in most markets. This gap has widened as lab grown prices declined while mined diamond prices remained more stable. Both are graded to identical standards by IGI and GIA.
What determines the price of a specific lab grown diamond?
The price of a specific stone is determined by its certified quality characteristics: cut grade, colour grade, clarity grade, carat weight, and shape. A 1 carat lab grown diamond with Excellent cut, D colour, and VS1 clarity will price differently to a 1 carat stone with Good cut, H colour, and SI1 clarity, regardless of market conditions. An IGI certificate records these characteristics for each stone and allows buyers to compare like with like.
Does shape affect the price of a lab grown diamond?
Yes. Round brilliant stones typically carry the highest price per carat because of consistent demand and the precision of cutting required. Fancy shapes, including oval, pear, and emerald cut, often trade at a lower price per carat while presenting more face up surface area at the same carat weight. This means a 1 carat oval or pear cut lab grown diamond may cost less per carat than a 1 carat round brilliant of comparable quality.
Is the price of a lab grown diamond likely to increase?
There is no reliable way to predict short-term price movements in any commodity market. What the current data shows is that the sharp annual declines of 2021 to 2024 have moderated. The structural conditions that drove those declines — large supply overhangs and rapidly expanding production — have changed. Whether prices will remain flat, decline further at a slower rate, or increase depends on factors including production volume, demand, and broader market conditions.
What should I look for when comparing lab grown diamond prices?
Compare certified stones to certified stones. A price per carat figure means different things depending on the cut, colour, and clarity of the stone. Check whether the stone is IGI or GIA certified. Confirm the setting material: 18K solid gold and gold-plated settings are priced very differently. For complete pieces, ensure you understand what you are comparing: loose stones, stones in silver, stones in plated settings, and stones in solid gold are distinct categories at distinct price points.
Are lab grown diamonds in Australia priced the same as overseas?
Not always. Australian retail prices reflect the AUD exchange rate, import considerations, retailer margin, and the quality of setting and certification included. Prices quoted in USD from overseas retailers require currency conversion and may not include Australian delivery, duties, or after-purchase support. Comparison across different price points should account for these factors.
