Why Are Lab-Grown Diamonds Cheaper Than Natural Diamonds?

In the market for diamond jewelry? If so you might have come across something surprising, Lab grown diamonds an alternative to natural diamonds costing 30-50% less than natural diamonds even though they look identical. You must be asking yourself Why is this the case? Are they fake? Lower quality? Or is there a deeper reason behind the price difference?. In this blog well break down exactly why lab grown diamonds are cheaper and whether this affordability should affect your decision

What Are Lab-Grown Diamonds?

Lets start by understanding what are lab grown diamonds. Lab-grown diamonds (also called CVD or HPHT diamonds) are real diamonds created in advanced laboratories that mimic the natural diamond-growing process. They are chemically and optically identical to mined diamonds, they are certified by labs like IGI,SGL and are often now used in engagement rings, as well as bridal sets. So if they are real diamonds why are they cheaper?

5 Key Reasons Lab Grown Diamonds are cheaper

1. Controlled Production (No Mining Costs)

Natural diamonds are extracted through the tedious large-scale mining operations which involve land excavation, heavy labor, long supply chains, and environmental restoration for all the damage the mining causes. On the other had lab grown diamonds are grown in controlled lab environments using machines which severely reduces labor cost and supply chain markups. As there is less digging and more engineering the costs are lower.

2. Shorter Supply Chain 

Natural diamonds pass through multiple hands, these include

Mine → Sorting → Trader → Manufacturer → Retailer

Each layer adds markup.

As lab grown diamonds have fewer middlemen, they have a much simpler route which results in fewer costs and better pricing

Lab → Jeweler → You

3.  Efficient Technology

Machines used to product CVD and HPHT diamonds are growing faster and working more efficiently than ever before. Some labs are able to produce multiple diamonds in just a few weeks, as large scale production results in more diamonds the per unit cost drops further and further. Unlike diamonds there's no artificial scarcity or cartel pricing at play

4.  No “Rarity” Premium

Prices of natural diamonds are driven by scarcity and not just quality, which can be artificially created by withholding supply. Lab grown diamonds are more widely available, they are consistently produced and not driven by rarity based markups. That’s why a 1 carat lab diamond can be ₹60,000–₹80,000, while a similar natural diamond may cost ₹1.5 lakh or more.

5.  Changing Buyer Preferences & Modern Values

Nowadays Indian consumers especially millennials and Gen Z, are driving a major shift in buying behavior, As they want value for money not just inflated luxury. They care about ethics, transparency and sustainability. They prefer quality and meaning over blind brand prestige. As a result lab grown diamonds are priced to match these desires and not just on old school markup models.

 Should Indian Buyers Be Cautious?

There is no reason to be cautious as long as you buy certified LGDs from a trusted seller. In India there is a stigma of cheaper being associated with compromise but in this case lower pricing comes from efficient production and ethical sourcing, not lower quality. Not only are lab grown diamonds budget friendly their eco friendly too. Their production is fueled by renewable energy, they have a much lower environmental impact than mining and there's no land destruction.

 Price Comparison: Lab-Grown vs Natural Diamond in India

(Prices as per July 2025, certified diamonds only)

 Final Thoughts

Lab-grown diamonds aren’t cheaper because they’re lesser — they’re cheaper because they’re smarter, more efficient, and ethically produced. You’re not just saving money — you’re choosing bigger size, certified quality, transparency and sustainability