Gen Z Drives Massive Surge in Lab Grown Diamond Demand in Dubai and the Rest of UAE

Dubai Jewellery News: Lab Grown Diamonds Redefine the Jewelry Market

Lab-grown diamonds (LGDs) are rapidly transforming the global jewelry landscape, becoming one of the most sought-after luxury commodities in markets such as the UAE, Europe, India, and China. Once viewed as a niche alternative, these man-made gems are now mainstream, capturing the attention of Gen Z consumers in Dubai who are drawn to their affordability, sustainability, and innovative design potential. According to experts at the DMCC Lab-Grown Diamond Symposium 2025 held in Dubai, the segment has seen double-digit annual growth, outpacing most other areas of the jewelry industry in the UAE.

Gen Z’s love for sustainability and affordable luxury is sparking explosive growth in the lab-grown diamond market worldwide.
Image Credit: Labrilliante

Peter Widmann, Senior Vice President and General Manager of Swarovski Created Diamonds, said lab-grown diamonds represent one of the most significant innovations in the jewelry world in decades. “We’re witnessing a major shift in perception. Gen Z now accounts for around 60 percent of luxury consumers globally, and their preferences are reshaping the diamond market,” he stated.

This Dubai Jewellery News report highlights that social media awareness has been instrumental in driving the popularity of lab-grown diamonds, particularly among younger demographics seeking ethical luxury choices.

Affordability and Awareness Fuel Market Growth

Industry analysts attribute much of the surge to the sharp decline in prices. Independent diamond analyst Paul Zimnisky explained that the attractive price point has been a key motivator. “At the end of the day, consumers are buying these diamonds because they are far more affordable,” he said during his presentation at the symposium. Prices of natural diamonds have plummeted as a result of this competition, dropping from about $6,800 per carat in 2022 to roughly $4,300 by the end of last year.

Neil Ventura, Special Advisor for Precious Stones at DMCC in Dubai, added that lab-grown diamonds are not just confined to fine jewelry but are also increasingly being integrated into lifestyle and fashion accessories. This diversification is accelerating global adoption, as consumers view LGDs as stylish and modern alternatives that align with evolving tastes and ethical values.

Jewelry with lab-grown diamonds are rising in popularity across the Middle-East
Image Credit: StockShots

DMCC’s Expanding Role in the Diamond Trade

Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC in Dubai, emphasized that the Middle East has become a growing hub for LGD trade. “Lab-grown diamonds already account for nearly half of engagement ring center stones in the United States, and we’re seeing similar trends here,” he noted. Dubai alone witnessed over $1 billion worth of LGD trade last year, with more than 30 companies operating in the sector.

Bin Sulayem further clarified that natural and lab-grown diamonds should not be seen as rivals. “They are distinct categories that can co-exist. If properly structured, they expand consumer choice, inspire creativity, and grow the overall jewelry market,” he explained.

Manufacturers such as Saivi Lab Diamonds and Evermore Diamonds are reporting brisk sales in Dubai, further proving the sector’s accelerating momentum.

A New Era of Accessible Luxury

The rise of lab-grown diamonds signifies a generational shift toward conscious consumerism and inclusive luxury. As technology advances, the quality and brilliance of these diamonds continue to rival their natural counterparts, making them appealing to both young buyers and established collectors. With the global LGD market expected to reach up to $100 billion by the 2030s, the industry is entering a transformative phase where affordability, sustainability, and design freedom intersect.

The ongoing evolution of this segment underscores how innovation and social awareness are redefining luxury standards for the future. For jewelers, designers, and consumers alike, lab-grown diamonds symbolize not just beauty and brilliance but also a more ethical and sustainable way forward in fine jewelry.

For the latest Dubai Jewellery News, keep on logging to Gems News.