By Ramit Kapur, MD, GSI

The lab-grown diamond jewellery market in India is steadily growing. Estimates say it is valued at approximately $299.8 million in 2023, and is projected to reach just over $1 billion by 2032, growing at a CAGR of 14.1%, (Source: Statista and DGCIS)

But numbers only tell part of the story. The real question is: where is this growth coming from, and what does it mean for the future of diamonds in India?

Industry reports offer predictions, but what I bring to the table is first-hand insight; drawn from working in the lab, studying market shifts, and closely observing how both natural and lab-grown diamonds are shaping consumer behavior. This isn’t just about statistics; it’s about the fundamental shifts that will define the next five years.

The diamond industry has always been a fascinating reflection of evolving consumer preferences, technological advancements, and cultural values. Over the next five years, the industry will undergo significant shifts, not just in terms of volume and valuation, but in the way diamonds (both Natural and LGD’s) are perceived, consumed, and positioned within the jewelry and industrial sectors.

Lab-Grown Diamonds: Beyond Just an Affordable Alternative

Yes, lab-grown diamonds are witnessing a surge, and that’s not merely because they are a cost-effective alternative to natural diamonds. Their application extends far beyond jewelry. LGDs have carved out a crucial role in industrial applications: cutting tools, electronics, semiconductors, medical technology, and even quantum computing. Their superior hardness, high thermal conductivity, and versatility make them indispensable in sectors ranging from automotive to aerospace.

From a jewelry perspective, LGDs have found favor with a demographic that values accessibility, sustainability, and innovation. The affordability factor certainly helps, but what truly fuels demand is the evolving perception of jewelry as something dynamic and adaptable, rather than a once-in-a-lifetime, heirloom investment.

The Natural Diamond Market: Legacy, Heritage, and Value

While the LGD market is expanding, Natural diamonds remain unmatched in their legacy and emotional significance. A natural diamond isn’t just a gem; it’s a symbol of heritage, rarity, and an investment that carries both tangible and sentimental value.

What’s critical to understand is that natural and lab-grown diamonds do not have to compete against each other. This isn’t a simple case of one replacing the other. It’s not about choosing between two identical apples; it’s more like comparing a red apple to a green one; both have their unique appeal, audience, and purpose.

Consumers buying a natural diamond for a wedding, a significant milestone, or as an investment piece are not considering LGDs as an alternative. Their decision is deeply rooted in tradition and the perceived intrinsic value of a rare, earth-formed gemstone. The rarity of natural diamonds, their emotional weight, and their generational legacy ensure they remain the preferred choice for high-ticket, commemorative jewelry.

The Future of LGDs in Jewelry: A Parallel Market, Not a Replacement

Looking ahead, the growth of LGDs in jewelry will follow a clear trajectory; filling a distinct space in the fashion and contemporary jewelry market. Everyday jewelry, statement pieces, and experimental designs will see increased use of LGDs, especially when paired with alternative metals like silver or modern materials that blend style and affordability.

Fashion-forward consumers, particularly the younger generation, see LGDs as a practical and stylish choice for everyday wear and trendy accessories like watches, belts, brooches, charms and more. This trend suggests that LGDs will become even more integrated into modern fashion, allowing for creativity and accessibility in a way that natural diamonds traditionally have not.

Interestingly, LGDs also play a role in aspirational buying. For many first-time diamond buyers, LGDs serve as an entry point; an accessible way to experience the allure of diamonds before moving on to invest in natural diamonds. In that sense, LGDs are not a competitor to natural diamonds but rather a stepping stone.

Natural Diamonds: Reserved for Legacy, LGDs for Modern Expression

The next five years will solidify what we are already observing: natural diamonds will retain their space as the ultimate expression of prestige, tradition, and high-value investment. Meanwhile, LGDs will continue to gain momentum as a contemporary, fashion-forward alternative that appeals to a different audience; one that values versatility, affordability, and innovative design.

Rather than viewing this as a battle between natural and lab-grown diamonds, the industry should recognize that both segments are evolving in parallel. The future is not about one replacing the other, but about both thriving in their respective domains.

The Indian market, historically one of the strongest consumer bases for diamonds, will see a clear distinction in how both segments grow. Natural diamonds will continue to dominate serious, high-value jewelry, cementing their place as irreplaceable heirlooms and status symbols. LGDs, on the other hand, will fuel a different market: fashion-conscious consumers, modern jewelry trends, and industrial applications.

This isn’t a market shift; it’s a market expansion. And in the coming years, both natural and lab-grown diamonds will find their rightful place in India’s evolving jewelry and industrial landscape.