Half of millennial and Gen Z couples pick engagement rings with lab-grown diamonds— ‘well beyond what the mining industry had expected

More than half of couples have reported buying a lab-grown diamond for their engagement rings for the first time in history, according to a study by The Knot.

More carats at a lower price sounds like a great deal. That’s why many couples are choosing lab-grown diamonds over natural mined diamonds for their engagement rings. Plus, there’s a perception lab-grown diamonds are better for the environment.

For the first time ever, more than half of couples reported their engagement ring features a lab-grown stone, according to The Knot’s 2025 Real Weddings Study. Lab-grown diamonds have grown increasingly popular in the past several years, with 6% more couples buying them than last year and 40% more since 2019.

“The increasing popularity of lab-grown diamonds can be attributed to being conscious of budget, perceived value and ethical production practices,” Lauren Kay, executive editor at The Knot, told Fortune. They’re “a great and viable option for those unwilling to sacrifice stone size due to budget constraints.”

Since lab-grown stones are typically cheaper than natural diamonds and there’s been such a massive increase in the number of lab-grown diamonds purchased, engagement ring prices are down, according to The Knot, which found the current average price is $5,200, a 5.7% drop from 2023 and a more than 15% decline from 2021. 

“Design is absolutely the most important aspect of your purchase decision on a product—and the second criterion is price,” Alexander Lacik, CEO of jewelry giant Pandora previously told Fortune’s Orianna Rosa Royle. 

Younger generations, specifically, find it less important for the stone to be natural (22% for Gen Z, 28% for millennials), Kay said. 

Natural diamond producers have tried to keep up with the lab-grown diamond craze. In late 2024, De Beers, the world’s biggest producer of natural diamonds, slashed its prices by 10% to 15%. 

“The massive success of lab-grown diamonds has reduced prices for natural stones well beyond what the mining industry had expected, driven largely by consumers who want more affordable options,” according to a report by McKinsey & Co., which also called lab-grown diamonds “likely the biggest challenge facing diamond producers today.”

“Customers—when it comes to the bridal engagement space—are opting for spending the same or similar amount of money, but for a significantly larger stone,” Lacik said.  “Women like bigger stones. That’s the way the world works, whether we like it or not.”

By Sydney Lake

Associate Editor