The diamond industry has undergone an unprecedented shake-up in recent years due to the exploding popularity of lab-grown gems. It reflects a generational change in consumer sentiment — one that is fast becoming an identity crisis for the natural diamond industry. Bowden says the lab-grown diamond market is increasingly appealing to younger consumers, who are often more financially constrained and ethically motivated than older generations. A three-carat natural diamond (left) and a three-carat lab-grown diamond (right) side by side. The natural diamond industry is now facing headwinds from multiple directions.