Lab grown diamonds have fundamentally changed the jewelry industry. For OEM jewelry brands, the choice between natural and lab grown diamonds is no longer just about ethics — it is a strategic business decision that affects your pricing, positioning, and target customer. Here is an honest breakdown from our perspective as a Bangkok OEM manufacturer.
Are Lab Grown Diamonds Real Diamonds?
Yes — completely. Lab grown diamonds are physically, chemically, and optically identical to natural diamonds. They are made of pure carbon in a crystal structure. The only difference is origin: one formed underground over billions of years, the other grown in a controlled environment over weeks.
The GIA (Gemological Institute of America), the world's most respected gem grading authority, grades and certifies both natural and lab grown diamonds using the same 4Cs criteria: Cut, Color, Clarity, and Carat.
Key Differences
| Natural Diamond | Lab Grown Diamond | |
|---|---|---|
| Origin | Mined from earth | Grown in laboratory |
| Chemical Composition | Pure carbon | Pure carbon (identical) |
| Hardness | 10 Mohs | 10 Mohs (identical) |
| Brilliance | Exceptional | Exceptional (identical) |
| GIA Certification | Available | Available |
| Price (per carat) | $$$$ | $$ (60–80% less) |
| Resale Value | Higher | Lower |
| Ethical Concerns | Mining impact | Minimal |
| Market Trend | Stable | Rapidly growing |
Price Difference in OEM Manufacturing
For OEM jewelry brands, the price difference is significant. A 0.10ct natural diamond (common for pavé settings) costs roughly 3–5x more than an equivalent lab grown diamond of the same cut, color, and clarity grade. This difference compounds quickly when you are setting dozens or hundreds of stones per piece.
For a pavé ring with 30 small diamonds, the difference between natural and lab grown can be $200–$500 per piece at the manufacturing stage alone.
Which is Growing Faster?
Lab grown diamonds. Market research consistently shows that younger buyers (Millennials and Gen Z) in the USA, Canada, and Australia are increasingly choosing lab grown diamonds for engagement rings and fine jewelry. The primary reasons are price and ethical considerations.
However, natural diamonds retain stronger resale value and continue to dominate the luxury segment and certain Asian markets including Japan and China, where natural origin carries significant cultural weight.
Market by Region
- USA & Canada — Lab grown demand growing rapidly, especially engagement rings under $5,000
- Australia — Strong lab grown adoption, particularly among eco-conscious brands
- Germany & Europe — Mixed; natural preferred in luxury, lab grown in contemporary brands
- Japan — Natural diamond preference remains strong, lab grown emerging slowly
What About Moissanite and CZ?
Moissanite is a diamond simulant (not a diamond) with exceptional brilliance — some argue more fire and sparkle than diamond. It is priced significantly lower than lab grown diamonds and has built a strong following among value-conscious brands. CZ (cubic zirconia) is the most affordable option, widely used in fashion jewelry and bridge price-point brands.
| Natural Diamond | Lab Grown | Moissanite | CZ | |
|---|---|---|---|---|
| Hardness | 10 | 10 | 9.25 | 8.5 |
| Is it a Diamond? | Yes | Yes | No | No |
| Price (relative) | $$$$ | $$ | $ | ¢ |
| GIA Certified | Yes | Yes | No | No |
| Best for | Luxury brands | Premium brands | Value premium | Fashion brands |
Can I Mix Stone Types in One Collection?
Yes, and many brands do. A common strategy is to use natural diamonds in hero pieces (hero rings, signature pendants) for brand credibility, and lab grown or moissanite in lower price-point staples. This gives the brand a luxury anchor while making the collection accessible.
Our Recommendation
For new OEM jewelry brands entering the market with a retail price point between $80–$400: start with lab grown diamonds or moissanite. The quality is indistinguishable to most consumers, the price allows better margin or lower retail price, and the ethical story resonates with today's buyers. As your brand grows and you move upmarket, introduce natural diamond pieces selectively.