Part 1 was an overview of Lab-Grown Diamonds, how India must value them, and their origin story. I also mentioned how they have the same physical, chemical, and visually similar characteristics. The only difference between them is the time of creation. That means lab-grown diamonds are formed within a month, whereas mined diamonds take millions of years to form.
In the second part, I will discuss the Future Outlook of Lab-Grown Diamonds, the Industry’s present Indian Market Value, CAGR, and forecasted value after a Decade (10 years).
Future Outlook of Lab-Grown Diamonds
In India, Lab-Grown Diamonds are a growing industry and a significant factor because they are much more affordable than mined diamonds and only take months to generate. Moreover, Gen Z and Millennials prefer this instead of using it for savings or wedding stocks. Diamonds have been symbolized as the culture, tradition, and prosperity of India for ages, and from luxury fashion to bridal collections, diamonds are timeless representations in India.
India is the center hub for cutting and mining diamonds, experiencing a broad shift in LGDs. As these diamonds are created using High-Pressure, High-Temperature (HPHT) or Chemical Vapor Deposition (CVD) methods, India is now the mainstream, not the niche alternative, for Lab-Grown Diamonds.
Industry’s present Indian Market Value –
In India, metropolises like Jaipur, Mumbai, and Surat are already the polishing hubs of mined diamonds. As the Lab-Grown diamond industry in India is on the rise, it is becoming the center of attraction among global buyers and Indian customers, too. You can witness the range of how widely the market has shifted towards LGD with the present Indian market value.
Let’s take the example from the 2024-25 survey. The indian market value of Lab-Grown Diamonds is around USD 395.2 Million according to the future predictions. If we take the estimate from industrial and jewelry-grade stones, it’s around USD 300 to 600 million. These estimates are also for polished jewelry and other loose stones exports; they are the mixed reports. Earlier in the initial phase, the LGD industry was not even seen about a decade ago. Still, with the broad shift, we have seen a tremendous increase in LGD’s mainstream growth in city areas, especially in Metropolitan hubs.
Lab-Grown Diamonds CAGR & Their Forecasted Value after a Decade (10 years)
CAGR refers to the Compound Annual Growth Rate, which shows the average rate at which an investment, market, or business has grown within a year. This is the estimate for growth in a steady, nominal mode.
The formula for calculating CAGR is simple.
Beginning Value = Value at the start
Ending Value = Value at the end
n = Number of years
As reported by FMI, the Lab-Grown Diamond Industry in India is expected to grow to USD 1,51.4 by 2035. Survey Link—Survey. This broad shift can increase the CAGR by over 14.8% in the next 100 years. If we compare the future CASR with the past, it was around 10.66% between 2020 and 2024.
The future forecasted value, as per the FMI of the 2025 report, considering our market’s CAGR of 14.8%, is mentioned below.
- In 2025 – Expected to reach USD 395.2 Million.
- In 2030 – Expected to reach USD 780-850 Million.
- In 2035 – Expected to reach USD 1.57 Billion.
Considering the same CAGR of 14.8%, the market is estimated to be USD 1,192.3 Million by 2035. Factors affecting this shift and unimaginable growth are –
- India’s capability in Manufacturing and Export.
As I mentioned, India is already the leading hub for polishing, cutting, and manufacturing jewelry. LGDs have been adopted by a significant part of India, and this industry, too, is scaling up rapidly due to its cost-effectiveness and will soon be primed for the export markets.
- Improvements in Technology and Certifications.
Customer trust has been built over time due to technological advancements, marketing for ethical and environmental issues, which have resulted in positive responses for the LGD industry, and clear certification and labelling. These are all initiating a wide boost in consumer trust.
As I discussed in a previous blog, Gen Z and millennials are the main customers of the LGD industry because they seek Lab-Grown Diamonds as sustainable options and affordable luxury. These diamonds provide the latest Aesthetics, Unique shapes, and great Values.
Please share your experience with the LGD industry. If you aren’t familiar with it, after reading my two blogs, are you planning to invest in the fastest-growing industry? Also, comment on whether you belong to the Gen Z or the Millennials category.
You can take insights from Vivek Oberoi’s Lab Grown Company – SOLITARIO
Part 1 explained Lab-Grown Diamonds and how the nation must value them.
Part 2 explained Future and Industry Capture, followed by its expected CAGR and 10-year predictions.
Enjoy my previous writings from my Author Profile of Solsaga.
