Why Lab-Grown Diamonds Are Reshaping the Global Jewellery Market as India Leads the Value Chain
About IGI and India’s Dominance in Diamond Polishing
India sits at the very core of the global diamond ecosystem. According to IGI’s MD & CEO in an interaction with NDTV Profit, India has the largest pool of diamond polishers in the world, accounting for nearly 95% of global diamond polishing activity.
This dominance is not accidental. Decades of skill development, cost efficiency, and specialised clusters—particularly in Surat—have made India indispensable to the global diamond supply chain, spanning both natural and lab-grown diamonds.
As consumer preferences evolve, India’s role is expanding beyond processing into higher value-added segments such as grading, certification, and advanced manufacturing.
Lab-Grown Diamonds: Scale Is Rapidly Overtaking Natural Diamonds
Lab-grown diamonds are now being produced in significantly larger numbers compared to natural diamonds, fundamentally altering supply dynamics.
Unlike natural diamonds, which are constrained by geological rarity and mining cycles, lab-grown diamonds benefit from scalable production, predictable output, and faster turnaround times.
This shift has lowered entry barriers, improved affordability, and enabled faster innovation in design and customization—key factors driving widespread consumer adoption.
Why the Market for Lab-Grown Diamonds Is Expanding Rapidly
The market opportunity for lab-grown diamonds is large and expanding across geographies, especially in developed consumer markets.
Lab-grown diamonds appeal strongly to younger consumers due to their lower cost, ethical sourcing narrative, and environmental considerations. These factors are increasingly influencing purchasing decisions, particularly in bridal and fashion jewellery.
Retailers also prefer lab-grown diamonds as they offer better inventory flexibility, price transparency, and margin predictability.
US Bridal Market: A Structural Shift Underway
More than 50% of bridal jewellery purchases in the US now involve lab-grown diamonds.
This is a powerful indicator of changing consumer behaviour. The bridal segment has traditionally been dominated by natural diamonds, but value-conscious millennials and Gen Z buyers are increasingly opting for lab-grown alternatives.
Higher carat sizes at lower prices, combined with similar optical and physical properties, make lab-grown diamonds an attractive choice for modern weddings.
Consumption Expected to Double in the Next Few Years
IGI expects consumption of lab-grown diamonds to double over the next few years.
This growth is expected to be driven by rising acceptance, improved retail penetration, and expansion beyond bridal jewellery into everyday wear and fashion accessories.
As volumes scale, ecosystem players involved in certification, grading, and quality assurance stand to benefit from recurring demand rather than one-time sales.
India’s Strategic Advantage in the Lab-Grown Diamond Ecosystem
India’s unmatched polishing expertise gives it a decisive edge as lab-grown diamonds scale globally.
As production of lab-grown diamonds increases, the need for precision polishing, grading, and certification grows in parallel. India’s established infrastructure and skilled workforce make it the natural hub for these activities.
This positions India not just as a low-cost processor, but as a long-term value creator in the global jewellery supply chain.
Investor Takeaway
The rapid rise of lab-grown diamonds marks a structural shift rather than a passing trend. With India polishing nearly all of the world’s diamonds and global consumption set to double, the ecosystem offers long-term visibility.
Companies involved in grading, certification, polishing, and organised retail stand to benefit as scale, standardisation, and consumer trust increase.
As affordability and ethical considerations reshape jewellery buying behaviour, lab-grown diamonds are emerging as a powerful growth theme within the broader luxury and consumer discretionary space.
Read more long-term thematic insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
