De Beers, the diamond giant long associated with natural gemstones, is officially exiting the lab-grown diamond market, as prices have crashed by 90%, driven largely by a surge in low-cost supply from China.
On Thursday, the company announced it would begin winding down its Lightbox Jewelry brand, which since 2018 had offered lab-grown diamonds at discounted prices.
De Beers is currently in discussions with potential buyers regarding Lightbox’s remaining assets, offloading certain Lightbox assets, including inventory, as it exits the business.
Lightbox was introduced with a bold goal: to clearly distinguish synthetic diamonds from natural ones in the minds of consumers.
The brand offered transparent linear pricing of $800 per carat regardless of cut or clarity, framing LGDs as fashion-forward, affordable alternatives rather than heirloom-quality gems. By pricing significantly below natural diamonds, De Beers hoped to steer buyers toward viewing LGDs as a distinct category.
De Beers said in a statement. “Since then, LGD prices in the jewelry sector have fallen 90% at wholesale, tracking closer to a cost-plus model as they diverge from natural diamond prices.”
This sharp decline in lab-grown prices has eroded the business case for Lightbox. While De Beers initially sought to create a stable pricing framework for LGDs, the flood of lower-cost supply, particularly from China, has driven prices down and shifted the market dynamics. Today, LGD wholesale prices sit well below Lightbox’s fixed rates, undermining the brand’s value proposition.
What they said
The Chief Executive Officer of De Beers Group said: “As we move towards becoming a standalone company, we continue to optimise our business, reduce costs and build a focused De Beers that is positioned for profitable growth.
“The persistently declining value of lab-grown diamonds in jewellery underscores the growing differentiation between these factory-made products and natural diamonds. Lightbox has helped to highlight the fundamental differences in value between these two categories.”
Global competition continues to intensify with more low-cost lab-grown diamond production from China. In the US, supermarkets are driving down lab-grown diamond jewellery prices. Overall, we expect both the cost and price of lab-grown diamonds to fall further in the jewellery sector.
“The planned closure of Lightbox reflects our commitment to natural diamonds. We are also excited at the growing commercial potential for synthetic diamonds in the technology and industrial space.”
What to know
The timing of De Beers’ decision comes as it braces for a transformative period. Its parent company, Anglo American, is reportedly exploring a sale of De Beers amid its own restructuring efforts. At the same time, the global diamond industry is facing challenges, including weak demand, excess supply, and growing consumer preference for sustainability and transparency.
Shuttering Lightbox is part of a broader cost-cutting initiative within De Beers, as it works to streamline operations and reinforce its traditional market stronghold. While the move may signal retreat from an increasingly competitive synthetic space, it also signals De Beers’ intent to draw a sharp line between mined and man-made gems, a distinction it has long argued holds enduring value.
For now, the future of Lightbox and its remaining assets will depend on whether buyers see continued potential in a market De Beers has chosen to leave behind.
