Report

Saudi Arabia luxury lab grown diamond jewelry market is projected to witness a CAGR of 6.98% during the forecast period 2025-2032, growing from USD 735.41 million in 2024 to USD 1261.68 million in 2032F owing to sustainability, ethical sourcing, and technological innovation. The lab-grown diamond jewelry market in Saudi Arabia is seeing remarkable growth, fueled by factors such as shifting consumer preferences towards lab grown from mined diamonds, sustainability concerns, and the growing popularity of lab-grown diamonds.
The Saudi Arabia luxury lab-grown diamond jewelry market is experiencing significant growth, driven by the increasing emphasis placed on sustainability and ethics in sourcing by consumers. Lab-grown diamonds are considered more environmental-friendly and conflict-free; hence they appeal to eco-conscious buyers-particularly the emerging generations such as Millennials and Generation Z. Affordability is affected as lab-grown diamonds are usually 30-40% lower-priced compared to natural diamonds, making it easier for a wider audience-as middle-income consumers-to indulge in luxury jewelry. With such a price reduction, buyers can purchase larger or better-quality stones. Changing consumer preferences also shape the demand and market, as modern, customizable, and unique designs become more popular among buyers than those with non-lab-grown diamonds.
The Vision 2030 of Saudi Arabia stresses economic diversification from sources like tourism and entertainment to diversify luxury retail. The investment brings high-end malls, luxury boutiques, and tourism projects such as NEOM and the Red Sea Project, creating a highly favorable environment for luxury brands, including those selling lab-grown diamonds. For instance, in 2023, According to the Observatory of Economic Complexity, Saudi Arabia exported USD 23.9 million in diamonds, placing it as the 36th largest diamond exporter globally. Advances in technology would also have to be an influential factor since changes in production techniques have now made lab-grown diamonds almost indistinguishable from those sourced naturally in terms of quality and brilliance. Consumers have the added advantage of availing customized innovative designs, which are becoming popular due to global trends and celebrity endorsements, this works wonders for the Saudi Arabia consumer in normalizing the acceptance of lab-grown diamonds and, eventually, their demand rise.
Increasing Awareness Driving the Saudi Arabia Luxury Lab Grown Diamond Jewelry Market
Growing awareness is one of the key drivers of the growth of the Saudi Arabia luxury lab-grown diamond jewelry market. Consumer understanding of the environmental and ethical advantages of lab-grown diamonds is improving, and they are increasingly being accepted and demanded by consumers. Lab-grown diamonds are being sold as a sustainable and conflict-free option compared to mined diamonds, which resonate with environmentally focused consumers. This consumer attitude is driven by international trends and campaigns that prioritize sustainability and transparency in jewelry space. Educational campaigns by brands and retailers are driving this change. Firms are robustly promoting the benefits of lab-grown diamonds, including their environmental sustainability, ethical manufacturing, and reduced costs relative to natural diamonds. Social media, celebrity endorsements, and online advertising campaigns are increasingly promulgating this message, reaching across broad audiences and mainstreaming the idea of lab-grown diamonds as an upscale option. Also, the increased visibility of overseas brands such as Lightbox Jewelry Inc, Damas Jewellery and Pandora A/S in the Saudi market is contributing towards establishing credibility and trust for man-made diamonds. For instance, in September 2022, Damas Jewellery increased its footprint in Jeddah and Riyadh (Damas), and lab-grown diamonds are part of the future of the diamond business.
Government Initiatives Driving the Saudi Arabia Luxury Lab Grown Diamond Jewelry Market
Government policies are a key driver of the growth of the Saudi Arabia luxury lab-grown diamond jewelry market as part of the overall economic and social reformation efforts of the country under Vision 2030. The vision is an ambitious plan that seeks to diversify the economy, decrease reliance on petroleum, and encourage industries like tourism, entertainment, and luxury retail. In this context, various government-initiated projects are establishing a suitable setting for the luxury lab-grown diamond jewelry sector to grow. One such major project is the establishment of top-of-the-line luxury retail facilities, including luxury malls, luxury boutiques, and tourist destinations such as NEOM, the Red Sea Project, and Qiddiya. Such projects aim to lure high-end visitors and locals alike and serve as a platform for luxury players such as those dealing in lab-grown diamonds to retail their products. The government's emphasis on Saudi Arabia as an international luxury hub is increasing the demand for luxury jewelry, including sustainable, new-age offerings like lab-grown diamonds.
For instance, in May 2023, Riyadh International Luxury Week launched, bringing together an impressive array of limited-edition pieces, luxury collections of lab grown diamonds from over 120 jewelry houses hailing from 17 different countries around the world.
Fashion Segment is Anticipated to Propel the Growth of the Market
The fashion segment is expected to play a significant role in driving the growth of the Saudi Arabia luxury lab-grown diamond jewelry market. Contributing to growing demand among consumers, rising incomes, and the increasing popularity of lab-grown diamonds as an eco-friendly and affordable luxury option have changed consumer needs. Young consumers, primarily Millennials and Gen Z, are modifying their fashion-forward lifestyles by increasingly desiring trendy, versatile, and customizable jewelry. Lab-grown diamonds fall in a 30-40% lower price range compared to natural diamonds, bringing the luxuries of fashion to even the middle-income earner. Eco-friendly and ethical in appeal, they further provide a pitch to environmentally conscious buyers who want to see sustainability and transparency as the basis of their purchase. Another trend that is currently common is everyday luxury. Consumers are going towards better quality, more versatile earrings, necklaces, and bracelets for everyday wear. Lab-grown diamonds were going into minimalist and stackable designs hybridization between luxury and practicality. Celebrity and influencer endorsements will have a huge impact as well, touting lab-created diamond jewelry as simply stylish and modern, influencing consumer choice.
For instance, in January 2024, Saudi designer Danah Alsahel discussed her debut collection, Brilliance LLC, and stated that another trend is lab-grown diamonds, which are a more sustainable, ethical, and affordable option than mined diamonds.
Future Market Scenario (2025 - 2032F)
- As consumer awareness about the environmental and ethical benefits of lab-grown diamonds increases, the market will continue to expand, particularly among younger demographics including Millennials and Gen Z.
- Saudi Arabia's Vision 2030 and initiatives like the Saudi Green Initiative will further promote sustainability, creating a favorable environment for lab-grown diamonds.
- Innovations in diamond-growing technologies, particularly Chemical Vapor Deposition (CVD) and High Pressure High Temperature (HPHT) will continue to improve the quality, size, and variety of lab-grown diamonds.
- The growth of online retail platforms will make lab-grown diamond jewelry more accessible to consumers across Saudi Arabia. E-commerce will provide a convenient and transparent shopping experience, with detailed product information and virtual try-on features.
Key Players Landscape and Outlook
The Saudi Arabia luxury lab-grown diamond jewelry market is one emerging industry that has a high promise of growth because of changing consumer tastes, sustainability movements, and the initiatives of major governments, including their own. The forecast for this market is that it is going to grow gradually due to the people's increasing awareness of sustainability, affordability, and ability to scheme personalized, unique designs. The Vision 2030 initiative presented by Saudi Arabia, promoting luxury retail and tourism, paves the way for the facilitation of this emerging opportunity for luxury brands; therefore, any company going for this market should focus on their education campaigns pointing to the ethical and environmental advantages of lab diamonds, by way of example, localizing strategies that align with the touch of Saudi hearts. In the future, lab-grown diamonds are expected to be commonplace in mainstream choices in luxury jewelry in Saudi Arabia by 2030, reflecting the ongoing global changing trend toward sustainable and innovative luxury products. Brands that embrace digitization are well-positioned to thrive by emphasizing personalization and building robust partnership behaviors in such a dynamic business environment.
For instance, in October 2023, Dana Alalami's Saudi Arabia's Glow teamed up with Greenlab Diamonds, a renowned Indian manufacturer of precious stones, in an impressive USD 120 million deal aimed at diving into the lab-grown diamond market in the kingdom.