As lab-grown diamonds are set to have 16 per cent share of the $132 billion global diamond market by 2029, India is at the forefront of this new segment as the largest exporter and second-largest producer.

Lab-grown diamonds have been rapidly gaining ground over their natural counterparts, and are expected to make up for 16 per cent of the global diamond market by 2029, up from 12 per cent in 2024 and 9 per cent in 2019. The $108 billion global diamond market is expected to grow to $132 billion by 2029, finds RedSeer Consultants.

While natural diamonds have long been associated with luxury and status, shifting consumer priorities are challenging their dominance. High costs, ethical concerns over mining practices, and increasing awareness of sustainable alternatives are prompting buyers to explore LGDs as a viable and desirable option.

India is not just participating in the LGD revolution but leading it. India is the largest LGD exporter in the world, accounting for 28.6 per cent of global lab-grown diamond exports in 2023, as per the Gem & Jewellery Export Promotion Council (GJPEC).

Surat, the heart of India’s diamond processing industry, has emerged as a global leader in LGD manufacturing. The city is already home to thousands of traditional diamond-cutting and polishing units and processes 90-95 per cent of the world’s gem-quality LGDs for cutting and polishing. It has now embraced lab-grown diamonds with significant investment in cutting-edge chemical vapor deposition (CVD) technology, making it cheaper, more sustainable, and ideal for cost-effective mass production. Production facilities are rapidly expanding to meet growing global demand.

India is also the second largest in terms of rough LGD manufacturing in the world, after China. India produced 35 per cent of the world’s LGDs in 2023.

However, India’s lab-grown diamond jewellery market is still small at $300-350 million as of 2024, but growing at 15 per cent CAGR over the next decade. As the market evolves, large-scale retailers and luxury houses are actively shaping the trajectory of LGDs as they drive sales volumes and act as an affordable entry point for consumers. Jewellery brands are gradually pivoting from exclusively natural/mined diamonds in favour of lab-grown alternatives, while high-end jewellers are incorporating LGDs into select collections.

Courtesy: Deccan Chronicle