Industry Turnaround Status
The lab-grown diamond (LGD) industry is in early recovery phase, transitioning from niche to mainstream with market value projected to grow from $450 million in 2023-24 to $1.2 billion by 2030-31. India has become the global manufacturing hub, with polished LGD exports more than doubling from 7.8 million carats in FY24 to 15.3 million carats in FY25.
Industry Turnaround Status
The lab-grown diamond (LGD) industry is in early recovery phase, transitioning from niche to mainstream with market value projected to grow from $450 million in 2023-24 to $1.2 billion by 2030-31. India has become the global manufacturing hub, with polished LGD exports more than doubling from 7.8 million carats in FY24 to 15.3 million carats in FY25.
Common Catalysts
- •Regulatory clarity through new standardization measures and official terminology adoption has legitimized the category
- •Significant price advantage (₹20,000-₹80,000 per carat vs natural diamonds' ₹70,000-₹5 lakh) driving accessibility among younger consumers and tier-2 cities
- •India-EU FTA expected to enhance jewellery competitiveness by easing trade and reducing duties
- •Vertical integration strategies by players controlling the complete value chain from diamond cultivation to retail
Key Risks
- •Potential oversupply as production capacity expands rapidly without corresponding demand growth
- •Consumer perception challenges as LGDs become commoditized, potentially eroding premium pricing
- •Natural diamond industry pushback through marketing campaigns emphasizing rarity and emotional value
Leaders vs Laggards
Goldiam International leads with 90.5% of export sales now from LGD jewellery (up from 80% YoY), robust 30% revenue growth, and aggressive ORIGEM brand expansion with 20 new store LOIs; laggards include traditional natural diamond players slow to adapt to the LGD transition.
Verdict
INDUSTRY RECOVERING
The LGD industry shows strong early recovery signals with accelerating market penetration (from 5% to nearly 20% globally since 2018), regulatory support, and clear consumer adoption trends across multiple demographics and geographies.