Was the Bottom Reached? Lab-Grown Wholesale Prices Rise in Q3 2026

By Edahn Golan
Signs of stabilization that emerged in the second quarter became more pronounced in Q3. Lab-grown diamond wholesale prices increased across several key categories, suggesting that the market may be approaching a floor after years of steep price declines.
The recovery is not broad-based, and year-over-year pricing remains significantly below prior levels. But if the recent gains are sustained, they could mark an inflection point in the lab-grown diamond wholesale price cycle.
Round Lab-Grown Diamond Wholesale Prices Rise 2%
Wholesale prices for 1- to 3-carat round lab-grown diamonds increased by approximately 2% overall during the third quarter compared with Q2 2026.
In the Q3 2026 LGD Wholesale Price List, round IGI-certified lab-grown diamonds traded at wholesale between $73 and $142 per carat. The highest price was for 3-carat D-color VVS stones ($142/ct); G–H colors traded at $73–79 per carat across all sizes. A 1-carat D VVS lab-grown diamond traded at $87 per carat.
One-carat rounds increased 1.3% quarter over quarter. The strongest gain was recorded among 3-carat rounds, where lab-grown diamond wholesale prices rose 7.5%. The 2-carat category, one of the most important segments of the market, increased 2.3%.
The 1.50-carat category has yet to participate in the broader recovery, with prices declining 3% from Q2.
The year-over-year picture remains considerably weaker. Round prices are down 9%, while 2-carat rounds remain 20% below their Q3 2025 level.
This distinction is critical: the recent quarterly gains represent an early indication of price stabilization, rather than evidence of a fully established upcycle.
Fancy and Square Shapes Show Stronger Gains
Fancy and square-shaped lab-grown diamonds have shown a more pronounced move. Prices for these categories increased by more than 7.5% during the three-month period.
On a year-over-year basis, fancy shapes remain 9.5% below their level a year earlier, while square shapes are modestly higher.
Despite these recent gains, the broader LGD wholesale market remains well below historical levels. The LGD Wholesale Price Index declined 10% year over year and is down 92% since tracking began in July 2018.
The magnitude of the long-term decline puts the latest quarterly gains in perspective. Even with recent stabilization, lab-grown diamond wholesale prices remain a fraction of their 2018 levels.
Consumer Demand and Supply-Side Discipline
The recent price movement appears to reflect a combination of demand and supply-side factors rather than a conventional short-term pricing cycle.
Consumer demand for lab-grown diamonds continues to expand. In the US, LGD-set jewelry unit sales increased 25% in September. Year to date, demand has increased by nearly 23%.
At the same time, the supply side is showing signs of greater price discipline.
After years of declining rough lab-grown diamond prices, growers are increasingly holding prices steady and, in some cases, achieving price increases. This represents a meaningful change from the persistent supply-driven price erosion that characterized much of the market’s earlier development.
Industry consolidation is another factor. With the vast majority of lab-grown diamonds polished in India, greater vertical integration among large manufacturers is creating a more consolidated supply chain.
Large Indian manufacturers increasingly operate across multiple stages of the value chain, from growing and polishing diamonds to setting them in jewelry and selling directly to retailers. Their exposure to US retail remains limited, although some also operate jewelry stores in India.
This degree of vertical integration gives manufacturers greater visibility into downstream demand and greater control over production economics. It may also be contributing to a closer alignment between production levels and actual consumer demand.
The Bottom Line
For years, the lab-grown diamond market was characterized by a race to the bottom in wholesale pricing. The latest data suggests that this dynamic may be changing.
It is too early to declare that the market has definitively reached its bottom. Year-over-year prices remain substantially lower, and the recovery is uneven across sizes and shapes. But the combination of stronger consumer demand, greater supply-chain consolidation and increasing price discipline among growers and manufacturers is creating conditions for a potential wholesale price floor.
If these trends persist, the next phase of the lab-grown diamond market may be defined less by rapid price deflation and more by gradual price stabilization and, potentially, a sustained recovery in wholesale values.
Our diamond market analytics indicate that the balance between supply and demand is shifting. The key question is no longer simply how far lab-grown diamond prices can fall, but whether the market has entered the early stages of a new pricing direction.