A growing phenomenon in the diamond industry has taken the world by storm. Known for being more environmentally friendly, sustainable and considerably more affordable, lab-grown diamonds are becoming increasingly popular worldwide.
Despite their identical physical and chemical properties, lab grown diamonds are nearly 40% cheaper than natural diamonds. It’s no wonder people are loving and raving about lab-grown diamonds!
In India, the popularity of lab-grown diamonds has grown steadfastly. Since its inception in the country, people are turning towards the more ethical and cost-effective option.
In 2021, India’s LGD market accounted for Rs 2,200 crore, and its contribution to the global lab-grown diamond production stands at 15%. The growing market dominance of lab-grown diamonds can be attributed to technological breakthroughs and a sound shopping approach that buyers have taken amid Covid-19 (Source: TOI).
This speaks volumes about the widespread popularity of lab-grown diamonds in India. Considering India is one of the biggest industries for jewellery, it is predicted to become a global hub for lab-grown diamonds.
A recent industry update is that India’s polished lab-grown diamond exports amounted to $1.05 billion from April 2021 to January 2022. It recorded stellar growth of nearly 113 per cent and is projected to grow in numbers in the coming quarter (Source: Gem & Jewellery Export Promotion Council).
The Shift in The Consumer Mindset
Lab-grown diamonds have steadily gained popularity among Indian consumers. Increasing awareness of sustainable diamonds is leading more and more people to choose them. Jewellery industry professionals are also taking the initiative to bust some of the most common myths surrounding lab-grown diamonds indicating a major shift in the jewellery market of India.
Millennials and young adults, a significant portion of the Indian population, are attracted to lab-grown diamonds because of the environmental benefits and less pocket pinch in comparison to natural diamonds.
In addition, the way adults of today wear jewellery has changed compared to the way their mothers and grandmothers wore it. In the past, precious items used to be safely stowed away in bank lockers and brought out only on special occasions. However, this behaviour is changing today.
In today’s society, young adults prefer authentic, everyday wearable and easygoing diamond jewellery. As a result, they want to purchase jewellery items that are hassle-free and affordable. Lab-grown diamond jewellery hits all the boxes and can be worn from weddings to vacations with no worries!
In addition to educating the younger population about the reliability of lab-grown diamonds, older generations are also gradually embracing this new technology. For a country quite cautious and conservative in purchasing diamond jewellery, India is finally beginning to embrace the lab-grown diamond revolution and we at Jewelbox are here for it!
Policy Updates
Significant moves are being made by the Indian government and banking institutions to instil further trust and make it clear that lab-grown diamonds are perfectly genuine, just like natural diamonds.
In August 2022, Shri Piyush Goyal The Commerce and Industry Manager held a meeting with stakeholders to discuss ways in which the lab-grown diamond industry could be promoted.
The sector holds immense potential to further bolster our diamond industry, enabling India to consolidate its stature as the diamond manufacturing hub of the world Mr Goyal said in a tweet (Source: The Hindu).
The government also intends to invest in high-tech and updated machinery to manufacture lab-grown diamonds in the country. As a result, India will be able to produce more lab-grown diamonds than it currently does.
Currently, India contributes around 15% to the global production of lab-grown diamonds for which it is presently self-sufficient. However, keeping in mind the future potential, there is a need to maintain technological self-reliance in producing machinery and a leadership position in producing lab-grown diamonds (Source: GJPEC India).
SBI, the largest bank in India has also recently announced funding for lab-grown diamond jewellery manufacturers (Source: Economic Times). It is a significant step towards promoting and encouraging more people to buy lab-grown diamonds.
Exports of Lab-grown Diamonds
In response to a growing demand for lab-grown diamonds, India, which has always played a large role in worldwide diamond production has now also ramped up production of lab-grown diamonds.
According to a study by Gem and Jewel Promotion Export Promotion Council, Vice Chairman, Vipul Shah was quoted as saying
Exports of polished lab-grown diamonds may double in the current financial year started April 1 from $1.3 billion in the prior year. We have a huge potential to grow exports to $7 billion-$8 billion in the next few years on the back of US demand and acceptability in the UK and Australia (Source: Business Standard).
Conclusion
The potential for lab-grown diamonds in the near future is enormous. As more people become aware of the advantages lab-grown diamonds offer, they are predicted to chart new levels of success.
A rapidly growing industry, lab-grown diamonds are perfect for making every moment special. At Jewelbox, we are eager to witness the revolution as lab-grown diamonds spread happiness to you and your loved ones. After all, diamonds are for everyone.
