How Economic Shifts in the Global Market Affecting the Jewellery Market
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The global jewellery industry is a complex interplay of craftsmanship, consumer trends, and macroeconomic forces. From luxury boutiques in Paris to bridal showrooms in Mumbai, jewellery markets are deeply influenced by global economic shifts. In recent years, we’ve witnessed an accelerated transition in buyer behaviour, driven largely by rising inflation, evolving values around sustainability, and increased price consciousness. At the heart of this transformation is a rising demand for lab-grown diamond jewellery.
As economic uncertainty shapes spending habits, CVD diamond jewellery (Chemical Vapor Deposition) and other forms of lab diamond jewellery are emerging as modern, ethical, and financially accessible alternatives to traditionally mined diamonds.
According to a recent Markets and Data report, the global lab-grown diamond jewellery market is poised for robust growth, expected to increase from USD 14.28 billion in 2024 to USD 48.10 billion by 2032, reflecting a CAGR of 16.39%.
Let’s explore how economic trends are reshaping the future of jewellery and propelling the rise of lab-grown gems.
Key Global Economic Trends Impacting the Jewellery Market
1. Inflation, Interest Rates & Spending Power
Persistent inflation and rising interest rates have reduced discretionary spending. Consumers are prioritising essential purchases, making high-end luxury items less accessible to the average buyer. This has led to a greater demand for affordable luxury, where lab diamond jewellery stands out as a compelling option.
2. Supply Chain Disruptions & Material Costs
From mining operations to final delivery, the jewellery supply chain has been rattled by global disruptions, caused by the pandemic, climate events, and material shortages. Traditional diamond prices have surged in recent months, while lab-grown diamond jewellery offers lower prices with shorter supply cycles.
3. Geo-political Tensions & Trade Regulations
Recent geopolitical events, including new tariffs imposed by the United States, have added complexity to the international jewellery trade. Tariffs on mined diamonds, particularly from Russian origins, have led to import restrictions and price hikes, making CVD diamond jewellery a more attractive alternative for both retailers and consumers.
4. Rise in Sustainability Awareness and Ethical Sourcing
Environmental and social consciousness is on the rise, especially among younger consumers. Ethical sourcing, carbon footprint, and traceability now play a major role in purchasing decisions. Lab-grown diamond jewellery, especially those created via eco-friendly CVD technology, appeals to a generation seeking beauty without compromise.
5. The Shift Toward Lab Grown Diamond Jewellery
The consumer shift toward lab-grown diamond jewellery is no longer a niche trend—it’s a mainstream movement. A 2018 MVI Marketing study found that nearly 70% of millennials were open to buying lab-grown diamonds for engagement rings, a significant increase from the previous year. This generation values transparency, affordability, and sustainability—all hallmarks of LGD jewellery.
Global retailers are responding in kind. From legacy brands to digital-first jewellers, lab-grown collections are now featured in flagship stores and online inventories alike. As consumer awareness continues to grow, lab diamond jewellery is quickly becoming an essential category.
6. Price Sensitivity & Consumer Purchasing Behaviour
Amid economic uncertainty, consumers are more value-driven than ever. The price drop in lab-grown diamond jewellery—a result of technological advancements and increased supply—has reshaped buying patterns. Customers are now exploring multi-piece purchases and larger carat sizes within the same budget.
For traditional jewellers, this trend has introduced new pricing challenges but also new revenue models. Smart players are leveraging competitive LGD pricing to attract younger demographics and first-time buyers.
Impact on Retailers and Wholesalers
Retailers and wholesalers are rethinking their strategies. Loose LGD stones offer flexibility in customisation, while ready-made LGD diamond jewellery appeals to time-sensitive buyers. Market segmentation is becoming more pronounced, with lightweight fashion jewellery coexisting alongside high-end lab-grown solitaires.
Managing inventory in this volatile landscape requires agility. Retailers must strike a balance between supply predictability and product diversity, ensuring they meet evolving consumer demand without overstocking amid price fluctuations.
Kira’s Global B2B Perspective
At Kira, we’ve always believed in staying ahead of the curve, and the evolving economic landscape has only reaffirmed that belief. As global demand for lab-grown diamonds jewellery surges, our commitment to innovation, scalability, and sustainability positions us as a trusted partner for B2B buyers around the world.
As the largest producer of lab grown CVD diamond, we offer a wide variety of LGD jewelry encompassing everything from classic solitaires to fancy-colored stones, and both certified and non-certified options to suit diverse business needs. Our clients include wholesalers, retailers, and private label brands who count on our variety and consistency.
What sets us apart is our operational resilience. With a robust global footprint and a fully in-house process—from diamond growth to final finishing—we ensure complete traceability, ethical sourcing, and end-to-end quality control. This not only streamlines our delivery but also aligns with the green values of today’s markets.
Our growth journey is built on strategic partnerships. We work closely with retailers and wholesalers, helping them tap into rising consumer interest in lab diamond jewellery while offering them flexibility in inventory, product design, and margins.
Regional Market Trends
India: A Rapidly Expanding LGD Landscape
India has transitioned from a manufacturing hub to a booming domestic market for lab-grown diamonds jewellery. According to Vantage Market Research, the Indian LGD market is projected to grow from USD 2.61 billion in 2023 to USD 8.31 billion by 2032—an impressive surge powered by rising middle-class affluence and digital jewellery platforms.
USA: A Mature Market with Retail Innovation
In the United States, lab diamond jewellery has entered the mainstream. As per Allied Market Research, the lab-grown diamond market is set to reach USD 59.2 billion by 2032, with North America being the largest consumer base. From independent jewellers to department store chains, retailers are experimenting with new LGD formats—bridal sets, stackables, and more—catering to a highly aware and value-driven customer base.
UAE & Europe: Eco-Luxury on the Rise
Regions like the UAE and Europe are seeing a surge in demand for eco-conscious luxury. Here, LGD diamond jewellery resonates with affluent buyers who value environmental ethics as much as aesthetic appeal. The conversation around “sustainable sparkle” is growing, and LGDs are becoming the preferred choice.
Technology & Sustainability as Economic Differentiators
At Kira, we believe technology and sustainability are not just trends—they’re economic essentials. Our production processes are increasingly powered by solar energy, supporting a greener value chain that reduces carbon emissions and operating costs alike.
In times of economic uncertainty, ethical business practices build consumer trust and long-term brand loyalty. From conflict-free sourcing to transparent certifications, these values are not only moral imperatives—they’re powerful market differentiators.
The Road Ahead: Outlook for 2025 & Beyond
Looking forward, we anticipate a stabilisation in LGD pricing as production scales and global supply balances out. At the same time, an eventual economic rebound could reignite luxury spending across markets, especially for accessible luxury like lab diamond jewellery.
With sustained demand and increasing consumer education, CVD diamond jewellery is set to expand across both established and emerging regions. At Kira, we’re gearing up for this next chapter with innovation, agility, and unwavering commitment to excellence.
Conclusion
As global economic trends redefine what luxury means, lab-grown diamonds jewellery stands out for its affordability, sustainability, and ethical advantage. The shifts we’re seeing today aren’t temporary—they’re shaping the future of the jewellery industry.
At Kira, we’ve embraced this change with open arms and open minds. By evolving with the market—investing in green tech, scaling our operations, and staying true to our values—we’re not just keeping up. We’re setting the pace.
Join us at JCK Vegas from June 6–9, 2025 at Booth No: 4113 at The Venetian Expo, Las Vegas, and discover why when you Think Lab-Grown, you Think KIRA.
Why Partner with Kira?
➣ Benefits for retailers: High-quality, ready-made jewellery designs and loose diamonds.
➣ Access to a vast inventory of 250,000+ diamond stones in various shapes and sizes.
➣ Reliable global delivery and competitive pricing.
