Lab-Grown Diamonds Win Over Australians Under 35 Seeking Transparency

For consumers under 35, the meaning of luxury is changing. Beauty and craftsmanship still matter, but younger buyers increasingly expect transparency, responsible practices and genuine value as part of the purchase. Iris Arnold, founder and Global CEO of Novita Diamonds, believes this generational shift is helping move lab grown diamonds firmly into the jewellery mainstream.

A diamond purchase has traditionally been shaped by convention. Buyers were guided by established expectations about rarity, size and what an engagement ring was supposed to represent. Today, Australians under 35 are approaching the decision differently.

They are researching more, questioning traditional assumptions and deciding for themselves which qualities matter most. For many younger buyers, the ideal diamond must not only be beautiful. It must also align with their financial priorities, personal values and expectations of responsible business.

According to Arnold, younger consumers are not moving away from the meaning of diamonds. She adds: They are becoming much more deliberate about what gives a diamond meaning to them. They want beauty and quality, but they also want transparency, responsible choices and confidence that they are paying for the things they genuinely value.

A rapidly growing global category

Lab grown diamonds have developed from a specialist product into a significant global jewellery category. Current market estimates differ because research firms use different definitions, but the overall direction is clear. Recent estimates place the worldwide market at roughly US$28 billion to US$34 billion in 2025-26, with continued annual growth expected across the remainder of the decade.

The Gemological Institute of America has reported substantial increases in the quantity, size and quality of laboratory-grown diamonds entering the market. GIA notes that laboratory-grown diamonds have essentially the same chemical composition and crystal structure as diamonds created in nature, and appear the same to the unaided eye.

According to Arnold, the technology has matured, quality has improved and consumers have become much more informed. She adds: But the strongest change has been cultural. Younger customers are comfortable questioning an established industry and choosing the product that makes the most sense for their own life.

Younger Australians want luxury to reflect their values

Environmental and ethical considerations have become particularly influential among Generation Z and younger millennials. Deloitte's recent global research shows sustainability continues to shape how these generations think about consumption and everyday decisions. In its 2024 survey, 64 per cent of Generation Z respondents and 63 per cent of millennials said they were willing to pay more for environmentally sustainable products or services.

Broader international consumer research reinforces the point. PwC found consumers were willing, on average, to pay a premium of about 9.7 per cent for sustainably produced or sourced goods, with waste reduction, recycling and environmentally considerate packaging among the most influential attributes.

None of this means every buyer decides purely on environmental grounds, price, design and personal circumstances remain decisive. But ethical and environmental questions are now part of the mainstream purchasing conversation.

According to Arnold, for younger customers, ethics are not a separate discussion that takes place after the product has been selected. She adds: They are increasingly part of how the customer evaluates the product itself.

Value matters to a cautious generation

Australians under 35 are balancing environmental ideals with real financial pressure. Housing costs, inflation and economic uncertainty have made younger buyers more careful about discretionary spending, while maintaining strong expectations around quality and transparency.

This helps explain the appeal of the category. Younger buyers are not necessarily seeking the cheapest possible product; they are looking for a better relationship between price, quality, design and personal significance. A lab grown diamond allows a customer to consider a larger stone or a more elaborate piece without accepting the traditional price structure associated with mined rarity.

According to Arnold, this generation is not less romantic. She adds: It is more conscious of how a major purchase fits into the rest of life. A couple may want an exceptional ring while also protecting their savings or directing money towards a home. They do not see those priorities as contradictory.

Environmental responsibility requires evidence

Lab grown diamonds appeal to many younger consumers because they do not require a diamond to be extracted from the earth, which can reduce direct land disturbance. But responsible discussion of the category requires an important qualification: producing a diamond in a laboratory requires energy, and its footprint depends on the production method, the efficiency of the facility and, critically, the source of the electricity used.

According to Arnold, it is not enough to apply a label such as sustainable and expect the customer to stop asking questions. She adds: The correct approach is to understand the supply chain, improve it wherever possible and communicate honestly about both the benefits and the impacts.

Younger consumers are particularly alert to unsupported environmental marketing. Credibility increasingly depends on specificity, a business should be able to explain what it means by responsible production and which elements of its impact are still being improved.

Standards are maturing

Ethics for consumers under 35 extend beyond carbon emissions to human rights, working conditions and accurate disclosure. The Responsible Jewellery Council's Laboratory Grown Material Standard became effective on 1 May 2025, establishing an industry framework for businesses handling laboratory-grown materials.

GIA has also updated its approach to laboratory-grown diamond assessment. Since October 2025, qualifying colourless to near-colourless stones assessed under its updated service are described using Premium or Standard quality classifications, with each assessed stone laser-inscribed to support clear identification.

According to Arnold, the customer should always understand exactly what they are purchasing. She adds: Trust comes from accurate descriptions, reliable certification and a willingness to make information available.

A generation shaped by research

The modern diamond buyer often begins the journey long before entering a showroom, comparing specifications, researching production methods and examining brand claims. This access to information has shifted power towards the customer, who now asks whether a diamond is independently certified, whether its origin is clearly disclosed and whether the price is transparent.

According to Arnold, younger customers are highly informed by the time they speak with us. She adds: That is a positive development. An informed customer is able to make a decision with greater confidence, and confidence is fundamental when purchasing something intended to carry lifelong meaning.

Individuality over convention

Younger Australians are also less willing to accept a standardised definition of an engagement ring, choosing distinctive shapes, personalised settings and designs that depart from tradition. The same shift is expanding diamond purchases beyond engagements to promotions, anniversaries and personal milestones.

According to Arnold, the meaning of jewellery is becoming more individual. She adds: A diamond can celebrate a relationship, but it can also represent independence or achievement. Younger consumers are comfortable creating their own traditions rather than waiting for the industry to define them.

The future will be built on trust

The growth of laboratory-grown diamonds reflects a wider change in the relationship between luxury businesses and their customers. Consumers under 35 are less likely to accept tradition as sufficient justification for price or sourcing. They want evidence, choice and control over the decision, and they expect companies to speak credibly about environmental responsibility without exaggeration.

According to Arnold, the strongest businesses will be those that respect the intelligence of the customer. She adds: Younger consumers do not want to be instructed about what they should value. They want clear information, beautiful products and the freedom to make a choice that feels right for them.

They still value beauty. They still value meaning. But they increasingly expect both to be accompanied by transparency, responsibility and a clear sense of value. For the jewellery industry, that is not simply a shift in product preference. It is a new standard for earning trust.