Demand for Lab-grown Diamonds to Double by 2030. Here's Why

Exploring the different facets of this emerging segment that is increasingly attracting retailers, investors and consumers to it

- Shiv Joshi

Lab-grown diamonds (LGDS) came into the limelight in India when Prime Minister Narendra Modi gifted a 7.5-carat lab-grown diamond to Jill Biden, the First Lady of the United States of America, during his visit to the country last year. Although invented in 1954 by American multinational conglomerate GE, man-made diamonds (also known as grown diamonds) have surged in popularity only in recent years.

"Just a few years ago, only one or two out of every five engagement rings sold were crafted from grown diamonds. Today, however, every third engagement ring sold in the United States is made from Grown Diamonds, marking a seismic shift in consumer preferences," Lisa Mukhedkar, founder and chief executive officer, Aukera Jewellery, which is into lab-grown diamonds, told IMAGES Retail.

"India will follow the same trend and trajectory," she added. At Aukera, which started operations in March 2023, and which has two stores launched under the brand name 'Aukera Grown Diamond Jewellery' in August 2023 and February 2024, 1-carat to 1.5-carat grown diamonds are the most popular.

Market Overview

Globally, LGD sales have skyrocketed from under $1 billion in 2016 to nearly $12 Billion in 2023, as per financial and diamond industry analyst Paul Zimnisky. These diamonds now account for over 17% of total sales, as per diamond research firm Edahn Golan.

The entry of international giants like Pandora, Swarovski, De Beers, and Cartier into the Grown Diamond arena over the years has added credibility to the category.

Legacy brands incorporating grown diamonds into their offerings further validate the growing demand for these ethically sourced gems.

The India Picture