Abstract: Under the dual impacts of the Covid-19 pandemic and the Russia-Ukraine conflict, the global natural diamond market has experienced simultaneous declines in both transaction volumes and prices, accompanied by significant shifts in the supply-demand dynamics between natural and lab-grown diamonds. By 2023, the continued contraction of the global economy has restructured consumer markets, compelling the majority of consumers to prioritize cash reserve preservation and reduce non-essential expenditures. While the expanding lab-grown diamond market is eroding natural diamonds' market share, oversupply has triggered a progressive decline in lab-grown diamond prices. The natural diamond sector maintains value and market stability through controlled extraction volumes and enhanced certification systems. Conversely, the lab-grown diamond segment improves competitiveness via technological innovation and cost optimization while demonstrating substantial potential in industrial applications. Both markets are actively seeking new growth strategies to align with the constantly changing market demands and consumer preferences.In this paper, to advance sustainable development in the diamond industry, it is recommended to: (1)Accelerate technological innovation in lab-grown diamond production to enhance efficiency and reduce costs; (2)Diversify application scenarios by exploring novel industrial uses in electronics and the semiconductor fields; (3)Implement sustainable mining and manufacturing practices to minimize environmental impacts and strengthen consumer confidence in diamond provenance systems.