(NewsNation) — Although lab-grown diamonds have become popular in recent years, World Diamond Council President Feriel Zerouki recently told Reuters that the synthetic alternatives are starting to lose their appeal.

The cost of natural diamonds has been in decline since mid-2022, following a peak earlier that year. This has been in part due to the growing popularity of lab-grown diamonds, especially among younger consumers.

However, Zerouki explains that the falling prices of lab-grown diamonds stemming from increased production are starting to reduce consumer interest in them.

‘Lab-grown diamond bubble has burst’: Industry official

Lab-grown diamonds can cost up to 85% less than natural diamonds, according to Quartz. Additionally, the average wholesale price of one and two-carat lab-grown diamonds has fallen by as much as 96% since 2018, according to diamond industry analyst Edahn Golan.

Zerouki explained that the falling prices are causing consumers to become wary of lab-grown diamonds.

“If you look at the latest trends, lab-grown diamond prices are crashing. This is impacting consumer confidence in lab-growns,” Zerouki told Reuters.

Experts warn that if the prices of lab-grown diamonds continue to decline, they may become mere fashion accessories, unable to compete with natural diamonds in the bridal market.

Reuters contributed to this report.