The India lab grown diamond jewelry market was valued at USD 264.5 million in 2022. Over the next ten years, lab grown diamond jewelry sales will rise at 14.8% CAGR. Total market size is set to increase from USD 299.9 million in 2023 to 1,192.3 million by 2033.
Key Market Shaping Factors:
Lab grown diamonds are mostly high in terms of quality than mined diamonds. This is because they are created in controlled circumstances with continual monitoring and quality control. They are sustainable and environmentally friendly as they are not extracted from the ground.
Lab grown diamonds are made by using techniques such as chemical vapor deposition (CVD) and high pressure and high temperature (HPHT). They are identical to natural diamonds in their appearance and composition. These diamonds are also called as cultured diamonds and synthetic diamonds.
Increased acceptance of lab grown diamonds in fashion and jewelry sectors will boost the market. Growing usage of these diamonds in the industrial sector will propel demand for lab grown diamond jewelry.
Apart from being incredibly affordable, sustainable, and environmentally friendly, lab grown diamonds can be tailored and customized to meet specific needs. Their high purity also makes them better alternatives to conventional diamonds.
India holds a prominent value share in the South Asia lab grown diamond jewelry market. This is due to the fast-moving lifestyle of the resident population. Lifestyle changes and growing spending on premium & high-cost ornamental products are spurring growth in India market.
Development of new jewelry with different diamond introductions and launches on the back of growing consumer demand will boost India lab grown diamond jewelry industry.
Growing export of jewelry is another key factor boosting India lab grown diamond jewelry industry. As per the India Brand Equity Foundation (IBEF), gold and diamond trade contributed around 7.5% to India’s GDP in 2021.
Various initiatives are being taken by the Indian government for export promotion. For instance, it recently permitted 100% FDI, wherein foreign investors or Indian companies do not require any approval from the Government of India or RBI. This is making India a lucrative market for lab grown diamond jewelry companies.
The brand expansion strategy for the market is flexible and can change according to market parameters. Significant brand acquisition and collaborations for attracting a wider audience are help lab grown diamond manufacturers to increase their revenues.
| Attribute | Key Insights |
|---|---|
| India Lab Grown Diamond Jewelry Market Estimated Size (2023E) | USD 299.9 million |
| Projected Market Size (2033F) | USD 1,192.3 million |
| Value-based CAGR (2023 to 2033) | 14.8% |
| Collective Value Share: Top 5 Countries (2022A) | ~25% to 30% |
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India lab grown diamond jewelry sales grew at 10.6% CAGR from 2018 to 2021. For the next ten years (2023 to 2033), demand for lab grown diamonds in India is set to surge at 14.8% CAGR.
Changing preference towards lab grown diamonds across India will drive the market forward. Besides this, rise in trade of lab grown diamond jewelry is likely to boost sales across India.
Since there is a moderately fragmented market, players across the nation are focusing on strengthening their partnerships with local players. They are strategically deploying prime distributors in local regions.
Rising integration of smart and high-end technology to manufacture complex and luxurious jewelry items is likely to remain a prevailing trait during the forecast period. Diamond jewelry in India is considered a prominent sales category with increasing demand from the women population. This is attributed to the increase in occasional activities, events, and festivities in the country.
Further, increase in disposable income and rising millennial population will propel lab grown diamond jewelry sales. In addition, growing popularity of polished lab grown diamonds will fuel sales across India.
Growing Focus on Limiting Environmental Exploitation and Increasing Sustainability Boosting Market
People are becoming more aware of environmentally friendly methods in jewelry making. They are realizing the importance of lab grown diamond jewelry when it comes to sustainability.
Lab grown diamond jewelry causes very less harm to the environment as compared to mined ones. This is attracting environmentally friendly consumers towards lab grown diamonds and jewelry.
Thanks to sustainability and cost-effective advantages, lab grown diamond jewelry market is giving tough competition to the natural diamond market. Purchasers are gradually seeking eco-friendly items. Hence, they favor lab grown diamonds due to the negligible environmental effect.
Nowadays, buyers in the target market are highly curated for sustainable and environment-friendly products. As a result, there is an increase in the demand and growing potential for lab grown diamond in the country.
Further, such products also boost the welfare and cater to a brand’s responsibility for the sustainable manufacturing approach which is aiding in the expansion of the brand.
Changing Lifestyles of Working Women Fueling Demand for Lab Grown Diamond Jewelry
Women are increasingly venturing into starting companies and becoming independent, in addition to those entering the workforce. Working women are a vital consumer segment contributing significantly towards the growth India lab grown diamond jewelry market.
Lab grown diamond jewelry is becoming a more affordable and preferred choice for women. The women are getting attracted to new and creative designs and are inclined towards purchasing jewelry matching their outfits.
High-profile and high-paying jobs translate into higher levels of disposable income. Another factor driving the demand for lab grown diamond jewelry is the growing importance of appearance at work and the desire to look and feel good.
Apart from that, the trend of wearing expensive jewelry at marriages, functions, and other festivals has been popular for ages and with the new generation it is growing significantly. This will positively influence lab grown diamond jewelry sales.
Lab Grown Diamond Promising to Become an Important Value Added Product
Processing is the most significant stage in the diamond distribution network. This is because it is here that the most value is added. Processing facilities in Belgium, Israel, India, China, South Africa, New York, and Thailand compete for supplies of high-quality diamonds.
Today, diamond producers process their high-quality rough diamonds across worldwide markets. But India can simply position itself as a developed diamond processing base, serving consumer and commercial markets. It can move its cutting and polishing industry up the value chain, therefore increasing revenues.
Principal Consultant
Surge in Export of Polished Lab grown Diamonds from India Boosting Sales:
There is a huge surge in lab grown diamond exports where India alone has witnessed exports worth USD 443 million. As per Future Market Insights’ analysis, lab grown diamond exports increased by 60% y-o-y growth while there was a sharp decrease in natural diamond exports by 40% y-o-y.
Lab grown diamonds, however, hold a very lesser share in the market. But the Finance Department in India is focusing on promoting exports and simultaneously reducing custom duty on the diamond seeds used for manufacturing. This will bode well for India lab grown diamond jewelry industry.
Cost-effective Feature of Lab Grown Diamond Jewelry Making it More Affordable
Lab grown diamonds are more affordable when it comes to jewelry. There have been multiple research setups for encouraging the production of seeds and machines which will reduce dependency on imports.
There have also been technological advancements in lab grown diamonds which are encouraging new people to join the LGD business. These advancements are making the process easier and cost-effective.
As per the recent observation, it is established that there is a growing awareness about lab grown diamonds having similar characteristics to natural diamonds. Due to their cheaper cost, lab grown diamonds are not only restricted to high-end consumers.
Necklaces and Rings Generating Most Revenues in India Lab Grown Diamond Jewelry Industry
In recent years, there has been an increase in demand for lab grown diamonds grown across India. There are several jewelry merchants providing varieties of designs and settings in lab grown diamond jewelry.
Lab grown diamond jewelry can be a preference as these are morally superior and has a distinctive range in terms of product offerings. This type of jewelry doesn’t cause issues as they are produced in the laboratory.
By application, necklaces and rings are the most preferred jewelry type each with a share of 26% out of all its application types. Compared to regular diamonds they require less maintenance as they are environmentally friendly. Thus, necklaces and rings obtained from lab grown diamonds are preferred as these come under the category of favorite jewelry as well.
Manufacturers Prefer Chemical Vapor Deposition Technique
There are two main techniques used for making lab grown diamond jewelry. This includes high pressure and high temperature (HPHT) and chemical vapor deposition (CVD).
Nowadays, diamonds are made by CVD as a part of newer development. The process imitates diamond formation through interstellar gas clouds. The reason why CVD is preferred is that because low temperature is required for its processing thus, the manufacturing process is simplified. Nearly 56% of the time, CVD technique is preferred for lab grown diamond formation.
Chemical vapor deposition technique allows companies to create high-quality and high-performance diamond jewelry. Hence, it is becoming quite popular across India.
Faceted Style Diamond is Mostly Used for Making Diamond Jewelry
Diamond jewelry these days is becoming more of a trend and style statement as it looks glamorous and symbolizes a person’s unique taste and style. Faceted diamond is more preferred by customers as it gives a sophisticated look to the jewelry and has proper finishing.
Although both cut types hold special significance, faceted diamond jewelry is preferred more, and nearly 56% of preference is for faceted type. This is because they are encrusted with gems, precious stones, crystals, and gemstones and have a proper finish.
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The entrance of new rivals in the lab grown diamond jewelry market has caused an abundance of retailers for the suppliers. The market is a highly competitive retailing industry. This rivalry has an impact on the overall long-term profitability of companies in the market. Collaborating with rivals to enhance market size rather than competing for a smaller market can help address this issue. Existing competitors compete fiercely in the market.
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| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 299.9 million |
| Projected Market Size (2033) | USD 1,192.3 million |
| Anticipated Growth Rate (2023 to 2033) | 14.8% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million/Billion for Value and (‘000 Carat) for Volume |
| Key Regions Covered | South Asia |
| Key Countries Covered | India |
| Key Segments Covered | Application, Technique, Cut Type, Size, Region |
| Key Companies Profiled | Avtaara; Jewelbox; Limelight Lab Grown Diamonds Ltd.; SYNDIORA; Fiona Diamonds; Ananta; DiAi Designs; Maiora Diamond; Wondr Diamonds; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market was valued at USD 264.5 million in 2022.
Increasing acceptance of lab-grown diamond jewelry in India to boost sales.
Necklaces and rings generate the most revenue in India with a 26% market share.
Faceted style diamond is mostly used with 56% share.
The surge in the export of polished lab-grown diamonds from India boosted sales.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Market - Pricing Analysis 6. Market Demand (in Value or Size in USD Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 7. Market Background 8. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Application 8.1. Bangles 8.2. Necklaces 8.3. Pendant 8.4. Earrings 8.5. Rings 8.6. Anklet 8.7. Broaches 9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Technique 9.1. Chemical Vapor Deposition 9.2. High - Pressure High Temperature 10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Cut Type 10.1. Faceted Style 10.2. Non-Faceted 11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Size 11.1. 0.3 11.2. 0.5 11.3. 1.00 11.4. 1.5 11.5. 2.00 12. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 12.1. East 12.2. West 12.3. North 12.4. South 13. Market Structure Analysis 14. Competition Analysis 14.1. Avtaara 14.2. Jewelbox 14.3. Limelight Lab Grown Diamonds Ltd. 14.4. SYNDIORA 14.5. Fiona Diamonds 14.6. Ananta 14.7. DiAi Designs 14.8. Maiora Diamond 14.9. Wondr Diamonds 14.10. Others 15. Assumptions and Acronyms Used 16. Research Methodology
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India Lab Grown Diamond Jewelry Market
