U.S. Diamond Market Size, Share & Industry Analysis, By Type (Synthetic and Natural), By Product (Rough and Polished), By Application (Jewelry and Industrial), and Country Forecast, 2025-2032

The U.S. diamond market size was valued at USD 58.97 million in 2024. The market is projected to grow from USD 61.97 million in 2025 to USD 96.93 million by 2032, exhibiting a CAGR of 6.6% during the forecast period.

Diamond is a naturally occurring mineral composed entirely of carbon atoms arranged in a unique crystal lattice called the diamond cubic structure, making it the hardest known natural material. It forms deep in the Earth’s mantle under extreme pressure and temperature and is valued for its brilliance, transparency, and high refractive index, which give it exceptional sparkle. Diamonds are used both as gemstones in jewelry and for industrial purposes, such as cutting, drilling, and heat conduction. Additionally, synthetic diamonds can be created in laboratories using advanced methods.

The market is driven by the rapid adoption of lab-grown diamonds in the bridal and fashion segments, primarily due to their affordability and increasing awareness of sustainability. The rise of digital retail and personalization, with AR/VR try-on tools and omnichannel jewelry shopping is driving increasing traction.

Furthermore, the market is dominated by several major players, including Brilliant Earth, LLC, ALTR Created Diamonds, CVD Diamond Inc., Labrilliante, WD Advanced Materials, LLC, and Diamond Foundry, which are at the forefront. A broad portfolio, innovative product launches, and strong initiatives aimed at the expansion of geographical presence have supported the dominance of these companies in the U.S. market.

MARKET DYNAMICS

MARKET DRIVERS

Exceptional Physical and Optical Properties of Diamonds to Drive Growing Utilization in the Jewelry Industry

The growing demand from the jewelry industry is significantly driving the expansion of the diamond market, largely due to the gemstone’s unique physical and aesthetic properties. Diamonds’ exceptional hardness, brilliance, and durability make them ideal for fine and daily-wear jewelry, ensuring long-term value and emotional appeal. Their unmatched sparkle, high refractive index, and ability to be cut into diverse shapes provide designers with creative flexibility. This enables innovative and personalized designs that resonate with modern consumers seeking individuality and self-expression.

Moreover, the symbolic association of diamonds with luxury, love, and prestige continues to drive the global demand for bridal and gifting purposes. The increasing adoption of lab-grown diamonds, which share the same optical and chemical properties as natural ones, has broadened access to sustainable, affordable, and ethically sourced jewelry.

Additionally, advancements in CAD and 3D printing technologies are also enhancing precision in diamond cutting and jewelry design, supporting mass customization. As disposable incomes rise and sustainability awareness grows, these intrinsic properties, combined with evolving fashion trends and technological advancements, are expected to drive the market growth across both natural and lab-grown diamond segments in the coming years.

MARKET RESTRAINTS

Premium Pricing of Natural Diamonds to Hamper Wider Market Penetration and Application Scope

The high price of natural diamonds remains a key factor that may restrain product adoption across several industrial and commercial applications. Natural diamonds are costly due to their limited availability, complex extraction processes, and labor-intensive grading and certification systems.

In industrial contexts, such as cutting tools, electronics, optics, and thermal management, this high cost often discourages large-scale use, especially when more affordable alternatives, such as lab-grown or synthetic diamonds, offer comparable performance at a fraction of the price.

In the jewelry industry, rising consumer sensitivity to pricing, coupled with growing awareness of sustainable and ethical alternatives, has accelerated the shift toward lab-grown diamonds (LGDs), which replicate the same physical, chemical, and optical properties as mined stones but are 60–80% less expensive. For manufacturers, the volatility in natural diamond prices also creates uncertainty in procurement and inventory management, reducing their appeal for cost-sensitive production.

Furthermore, as technological advancements improve the quality and consistency of synthetic diamonds, businesses are increasingly substituting natural diamonds with engineered variants to optimize performance without compromising quality. Consequently, while natural diamonds continue to dominate the luxury and heritage segments, their high price is expected to limit their penetration into broader industrial and mid-tier markets, hampering the overall growth potential in certain applications.

MARKET OPPORTUNITIES

Shift toward Personalized and Fashion-Forward Jewelry Designs to Create New Market Opportunities

The rising demand for innovative jewelry designs is being fueled by rapidly changing consumer preferences, where individuality, sustainability, and technology play central roles in shaping purchasing behavior. Today’s consumers especially Millennials and Gen Z seek jewelry that reflects personal expression, ethical values, and modern aesthetics rather than traditional, standardized designs.

In the diamond market, this shift is driving the demand for creative cuts, modular or convertible pieces, lab-grown alternatives, and gender-neutral designs that blend fashion with function. The proliferation of CAD, 3D printing, and digital customization tools has made it easier for brands to experiment with new forms, materials, and personalization options, while growing awareness of sustainability encourages the use of recycled metals and traceable, conflict-free diamonds.

Together, these trends are expanding the global diamond jewelry market by attracting new customer segments, enhancing design differentiation, and creating fresh opportunities for premium pricing and brand storytelling.

U.S. DIAMOND MARKET TRENDS

Increasing Utilization of Diamonds in Cutting Tools for Industrial Applications to be the Latest Market Trend

The utilization of diamonds in cutting tools for industrial applications is a major factor propelling the U.S. diamond market growth, owing to the material’s exceptional mechanical and thermal properties. Diamonds possess the highest known hardness and outstanding wear resistance, which make them ideal for cutting, grinding, drilling, and polishing extremely hard materials such as ceramics, composites, and metals.

Furthermore, their superior thermal conductivity enables efficient heat dissipation during machining, preventing tool wear and maintaining precision in high-speed operations. Industries such as automotive, aerospace, construction, and electronics increasingly rely on polycrystalline diamond (PCD) and polycrystalline diamond compact (PDC) tools for enhanced productivity and surface finish.

Moreover, the growing adoption of lab-grown industrial diamonds, which offer uniformity and cost efficiency, has further expanded their applications in advanced manufacturing and micro-machining. As global manufacturing shifts toward automation and precision engineering, the demand for high-performance diamond-tipped cutting tools is increasing rapidly. Continuous innovations in diamond coating technologies and hybrid composites are also creating new opportunities for toolmakers, ensuring higher tool life, reduced maintenance, and lower production costs, ultimately driving robust growth in the industrial diamond segment.

MARKET CHALLENGES

Volatility in Global Supply Chains and Rough Diamond Availability to Hamper Market Growth

Geopolitical tensions, trade restrictions, and sanctions, which affect key producing regions, have introduced uncertainties in sourcing and logistics. These disruptions limit the availability of rough diamonds, influence price fluctuations, and complicate procurement strategies for cutters, wholesalers, and U.S. retailers. The market volatility also stems from uneven production across major mining companies, where operational shutdowns, cost inflation, or environmental compliance requirements can lead to reduced output. Any decline in rough diamond supply affects midstream manufacturers, who already operate on thin margins and must navigate shifting inventories and unpredictable delivery timelines. The transportation and insurance costs have climbed due to macroeconomic pressures, further increasing the landed cost of polished stones entering the U.S. market. Retailers, in turn, struggle to maintain competitive pricing without eroding profitability.

Segmentation Analysis

By Type

Natural Type Segment to Hold Dominant Share Owing to High Consumer Spending Power

Based on type, the market is divided into natural and synthetic.

The natural segment is anticipated to dominate the U.S. diamond market share. The U.S. natural diamond segment remains strong, supported by the country’s long-established luxury jewelry culture and high consumer spending power. Growth is largely driven by the bridal jewelry segment, where mined diamonds continue to symbolize authenticity and emotional connection. However, the market is evolving with rising awareness of ethical sourcing and environmental responsibility, prompting brands to adopt transparent supply chains and “responsibly mined” certifications. The market also benefits from the resurgence of the resale and heirloom jewelry trend, as consumers increasingly value heritage pieces over new purchases. While competition from lab-grown diamonds is growing, premium branding and heritage appeal are helping natural diamonds retain their dominance in the U.S. luxury space.

The synthetic segment is expanding at the fastest CAGR of 9.6% during the forecast period with the rapid expansion of consumers embracing sustainable luxury and cost-effective alternatives. Younger buyers, especially millennials and Gen Z, are driving the shift toward lab-grown diamonds for engagement rings and fashion jewelry due to their affordability and minimal environmental impact. In addition, retailers and brands have responded by broadening lab-grown collections, supported by advancements in HPHT and CVD technology that enhance quality and reduce production costs. Beyond jewelry, the industrial demand in applications such as electronics, optics, and medical tools is also rising. These factors, along with strong online retail penetration, position the synthetic diamond segment as the fastest-growing segment in the U.S. jewelry industry.

By Product

Polished Segment Depicted Dominant Share Due to Robust Retail Demand

Based on type, the market is divided into rough and polished.

The polished segment accounted for the largest diamond market share in 2024. The growth is driven by strong retail demand, particularly in the bridal and luxury jewelry sectors, and by the increasing integration of lab-grown polished stones into the product mix. Trends such as online diamond trading platforms, AI-assisted grading, and customized jewelry design are transforming the retail landscape. Additionally, consumer preferences are shifting toward sustainably sourced and certified polished diamonds, pushing retailers to emphasize transparency and origin tracking. Despite competition from global polishing centers such as India and Belgium, the U.S. continues to set global benchmarks for polished diamond retail demand and branding innovation.

The rough segment is poised to expand at a CAGR of 3.3% over the analysis period. The U.S. rough diamond market shows relatively limited production but plays a significant role as a key importer and processing hub due to its ties with international suppliers. Demand is primarily driven by the needs of domestic cutting, polishing, and jewelry manufacturing industries, which rely on rough diamond imports from major mining regions, including Africa, Russia, and Canada. The segment growth is influenced by stable consumer demand for finished jewelry, as well as shifts in global supply availability.

By Application

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Jewelry Segment to Exhibit the Fastest CAGR Due to Consistent Consumer Expenditure

Based on application, the market is divided into jewelry and industrial.

The jewelry segment is anticipated to grow at the fastest CAGR during the forecast period, driven by steady consumer spending, especially in the bridal and luxury fashion segments. Continued interest in personalized jewelry, online retail channels, and sustainable purchasing choices sustains market activity. A key trend is the growing inclusion of lab-grown diamonds, appealing to younger and cost-conscious consumers while supporting ethical sourcing preferences.

The industrial diamond segment is experiencing moderate growth, primarily due to market saturation and a reliance on imports for industrial-grade diamonds. The segment is anticipated to grow at a CAGR of 2.9% over the forecast period. While applications in construction, precision cutting, and electronics remain steady, the market faces challenges from cheaper overseas production and limited domestic manufacturing scale. Synthetic diamonds dominate the sector, but the demand growth is restrained as industrial users adopt efficiency-driven rather than volume-driven procurement strategies.                                

COMPETITIVE LANDSCAPE

Key Industry Players

Key Players to Strengthen Their Position by Expanding Their Regional Presence

The U.S. diamond market is moderately consolidated, with a substantial number of regional and global players operating worldwide. Some of these companies include Brilliant Earth, LLC, ALTR Created Diamonds, CVD Diamond Inc., Labrilliante, WD Advanced Materials, LLC, and Diamond Foundry. Key industry players have established robust distribution channels, a strong regional presence, and offer a diverse range of products.

LIST OF KEY DIAMOND COMPANIES PROFILED

• Brilliant Earth, LLC (U.S.)
• ALTR Created Diamonds (U.S.)
• CVD Diamond Inc. (U.S.)
• Labrilliante (U.S.)
• WD Advanced Materials, LLC. (U.S.)
• Diamond Foundry (U.S.)
• Clean Origin (U.S.)

KEY INDUSTRY DEVELOPMENTS

• September 2024: Brilliant Earth expanded its retail reach with new showroom openings in Boston’s Chestnut Hill and Seaport districts, strengthening its U.S. footprint and local customer engagement.
• July 2023: Brilliant Earth broadened its ground-floor showroom portfolio, opening four new locations across the U.S. to support omnichannel growth.
• March 2023: Diamond Foundry initiated the construction of Foundry II in Trujillo, Spain, a USD 850 million facility backed by the EU and Spanish government. The site is designed to produce 10 million carats annually, with operations scheduled to commence in 2025. The facility will be powered entirely by solar energy, including a 120 MW solar installation plus battery storage.
• January 2021: WD Lab Grown Diamonds acquired J2 Materials, a materials-science company specializing in single-crystal CVD diamond substrates for advanced optical, semiconductor, and quantum applications. The acquisition strengthened WD’s technological capabilities and expanded its intellectual-property portfolio in high-performance diamond materials.

REPORT COVERAGE

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Report Scope & Segmentation

Strong bridal jewelry demand, the rapid rise of affordable lab-grown diamonds, and expanding online retail channels are key factors driving the market growth.

• Who are the top players in the market?

Brilliant Earth, LLC, ALTR Created Diamonds, CVD Diamond Inc., Labrilliante, WD Advanced Materials, LLC, and Diamond Foundry are some of the prominent players in the market.

• What are the major factors that are expected to favor product adoption?

The growing acceptance of lab-grown diamonds for their lower cost and sustainability appeal is expected to surge the product demand.

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