How have natural & lab-grown diamonds evolved over the last five years?
100/94 days Challenge
📊 A 5-Year Growth Analysis (India & Global)
hello dear friends Todays Topic of discussion is based The diamond industry of evolution. Over the last five years, so lets it can break into the part by part for better understanding. The lab-grown diamonds (LGDs) have emerged from niche status to a major force disrupting the traditional dominance of natural diamonds. This change is not just technological—it’s being driven by shifting consumer behavior, environmental concerns, global economic pressures, and new business models.
In this article, we break down the growth patterns, key drivers, and investment opportunities in both segments, with a focus on India and global markets.
🪙 1. Objective of the Research
This analysis aims to answer three key questions:-
How have natural and lab-grown diamonds evolved over the last five years?
What are the forces driving or restraining growth in each segment?
Where do future investment opportunities lie in this changing market?
🔍 2. Natural vs Lab-Grown Diamonds: A Quick Overview
Natural diamonds :- the natural diamond is come from under earth that is the real diamonds if you see the price of natural its too higher as compare to lab growm diamonds also the currently demand of natural diamonds is stable our increasing becouse of lab grown dimonds .and for mining of natural dimonds is too costly and not envirments friendly.
Lab grown diamond :- this diamonds can making it low costly ,envirment freindly and having dimonds of lab grown diamonds
Conclusion:
While natural diamonds are still seen as luxury and traditional, lab-grown diamonds are increasingly seen as affordable, sustainable, and equally real—especially among younger consumers.
🇮🇳 3. India: From Cutting Hub to Lab-Grown Leader
India has traditionally been the global powerhouse for cutting and polishing natural diamonds, especially in Surat and Mumbai. However, the landscape is changing:
✳️ A) Natural Diamonds in India
2019 Export Value: ~$24 billion
2023–24 Export Value: ~$18 billion
📉 Decline of ~25% over 5 years
📉 Why the Decline?
Falling global demand—especially in key markets like the US and Europe.
Rising LGD competition—offering similar sparkle at a much lower price.
ESG backlash—growing discomfort with the environmental and ethical implications of mining.
✅ Real Example:
A traditional Surat-based exporter saw its US orders drop by over 30% in 2023 due to a shift in demand toward lab-grown alternatives, especially for engagement rings.
✳️ B) Lab-Grown Diamonds in India
2018–19 Exports: ₹1,300 crore (~$160 million)
2023–24 Exports: ₹12,000+ crore (~$1.45 billion)
📈 CAGR: ~50–60%
🔼 Key Growth Drivers:
Government Push
2023 Budget announced R&D support for LGD production.
India is considering a PLI (Production-Linked Incentive) scheme for LGDs.
Low-cost manufacturing edge
India, especially Surat, produces LGDs at significantly lower costs than China or the US.
Global Retailer Acceptance
Buyers in the US, UK, and UAE are increasingly sourcing LGDs from India.
✅ Real Example:
Greenlab Diamonds and Sanghvi Exports, among India's top exporters, have shifted nearly 50% of their production lines to lab-grown diamonds to meet surging overseas demand—especially from US bridal jewellery chains.
🌍 4. Global Market Growth: A Tale of Two Trends
🌟 A) Natural Diamonds Globally
2018 Sales: ~$80 billion
2024 Sales: ~$64 billion
📉 Value drop of ~20% in 6 years
⚠️ Global Headwinds:
China’s slowdown: luxury demand has weakened amid economic uncertainty.
EU inflation: reduced discretionary spending.
Gen Z preferences: strong tilt toward sustainability and ethical sourcing.
✅ Case in Point:
De Beers, the world's biggest natural diamond producer, saw rough diamond sales fall from $5.4 billion in 2018 to $3.6 billion in 2023. In response, they launched Lightbox, a lab-grown diamond brand—signaling the strategic shift.
🌟 B) Lab-Grown Diamonds Globally
2018 Market: ~$1.5 billion
2024 Market: ~$14 billion
📈 CAGR: ~45–50%
💡 Markets Leading the Boom:
United States: World's largest LGD consumer.
Over 30% of engagement rings sold in 2023 were lab-grown (up from just 5% in 2018).
China: Especially strong in bridal segment.
Europe: Ethical fashion and minimalist jewellery fueling LGD sales.
✅ Example:
Signet Jewelers, the largest US jewellery retailer, has rapidly expanded its LGD offerings and reported a 700% increase in LGD-based bridal jewellery sales since 2019.
📌 5. Summary Table: 5-Year Market Performance
Segment2018 Market Size2024 Market SizeGrowth TrendNatural Diamonds 🇮🇳$24B$18B🔻 DecliningLab-Grown 🇮🇳$160M$1.45B🔺 Explosive GrowthNatural Diamonds 🌍$80B$64B🔻 DecliningLab-Grown 🌍$1.5B$14B🔺 Strong Growth
💼 6. Analyst Insight:-
“The diamond industry’s next big phase is being shaped by innovation and values. Lab-grown diamonds are no longer viewed as inferior—they are the future of accessible, ethical luxury.”
🔎 Key Investment Pointers:
Watch Indian LGD Manufacturers: Companies with advanced CVD/HPHT tech and export networks are poised for exponential growth.
Monitor Retail Partnerships: Indian suppliers tied up with global retail chains (e.g., Signet, Pandora, Zales) could see stable demand pipelines.
ESG-Themed Portfolios: Lab-grown firms fit into green investing narratives, making them attractive for ESG-conscious funds.
📝 Final Thought:
What was once a niche innovation is now reshaping the global gem industry. India is not only catching the wave—it’s helping to build it. The growth of lab-grown diamonds represents a rare opportunity where sustainability, affordability, and profitability intersect.
For investors, industry professionals, and policymakers, this space demands close attention—not just for its sparkle, but for its strategic shine in India's export and innovation story.
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