How economic shifts in the global market are affecting the jewellery market
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 have seen an accelerated change in buyer behaviour, driven largely by rising inflation, evolving values around sustainability and increased price consciousness. At the heart of this transformation is rising demand for lab grown diamond jewellery.
As economic uncertainty shapes spending habits, CVD diamond jewellery and other forms of lab grown diamond jewellery are emerging as modern, ethical and financially accessible alternatives to mined diamonds. According to a Markets and Data report, the global lab grown diamond jewellery market is expected to increase from USD 14.28 billion in 2024 to USD 48.10 billion by 2032, a CAGR of 16.39 per cent.
Key global economic trends impacting the jewellery market
1. Inflation, interest rates and 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 greater demand for affordable luxury, where lab grown diamond jewellery stands out.
2. Supply chain disruptions and 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. Mined diamond prices have surged in recent months, while lab grown diamond jewellery offers lower prices with shorter supply cycles.
3. Geopolitical tensions and 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 rising, especially among younger consumers. Ethical sourcing, carbon footprint and traceability now play a major role in purchasing decisions. Lab grown diamond jewellery, especially stones created through 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 is a mainstream movement. A 2018 MVI Marketing study found that nearly 70 per cent 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.
Global retailers are responding in kind. From legacy brands to digital first jewellers, lab grown collections now feature in flagship stores and online inventories alike.
6. Price sensitivity and 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 advances 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 using competitive pricing to attract younger demographics and first time buyers.
Impact on retailers and wholesalers
Retailers and wholesalers are rethinking their strategies. Loose stones offer flexibility in customisation, while ready made lab grown 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, meeting evolving demand without overstocking amid price fluctuations.
KIRA's global B2B perspective
At KIRA we have always believed in staying ahead of the curve, and the evolving economic landscape has only reaffirmed that belief. As global demand 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 CVD lab grown diamonds, we offer a wide variety of jewellery, from classic solitaires to fancy coloured 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 operational resilience. With a robust global footprint and a fully in house process, from growth to final finishing, we ensure complete traceability, ethical sourcing and end to end quality control.
Our growth journey is built on strategic partnerships. We work closely with retailers and wholesalers, helping them tap into rising consumer interest while offering flexibility in inventory, product design and margins.
Regional market trends
India: a rapidly expanding landscape
India has moved from being a manufacturing hub to a booming domestic market. According to Vantage Market Research, the Indian lab grown diamond market is projected to grow from USD 2.61 billion in 2023 to USD 8.31 billion by 2032, powered by rising middle class affluence and digital jewellery platforms.
USA: a mature market with retail innovation
In the United States, lab grown diamond jewellery has entered the mainstream. As per Allied Market Research, the market is set to reach USD 59.2 billion by 2032, with North America the largest consumer base. From independent jewellers to department store chains, retailers are experimenting with new formats such as bridal sets and stackables.
UAE and Europe: eco luxury on the rise
Regions like the UAE and Europe are seeing a surge in demand for eco conscious luxury. Here, lab grown diamond jewellery resonates with affluent buyers who value environmental ethics as much as aesthetic appeal.
Technology and sustainability as economic differentiators
At KIRA we believe technology and sustainability are not just trends, they are 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 powerful market differentiators.
The road ahead
Looking forward, we anticipate a stabilisation in 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. With sustained demand and increasing consumer education, CVD diamond jewellery is set to expand across both established and emerging regions.
Conclusion
As global economic trends redefine what luxury means, lab grown diamond jewellery stands out for its affordability, sustainability and ethical advantage. The shifts we are seeing today are not temporary, they are shaping the future of the jewellery industry.
At KIRA we have embraced this change with open arms and open minds. By evolving with the market, investing in green technology, scaling operations and staying true to our values, we are not just keeping up. We are setting the pace.