Lab Grown Diamonds – The Future of the Indian Diamond Sector
In recent years, the diamond industry has experienced a seismic shift with the advent of lab-grown diamonds. What was once a niche market has now grown into one of the fastest-expanding sectors in India. Traditionally recognized for its unmatched expertise in diamond cutting and polishing, India is now making significant strides in the lab-grown diamond space. The rapid growth of this sector is turning heads globally, and it’s clear that India is positioning itself at the forefront of this transformative trend.
In this blog, we’ll dive deep into what lab-grown diamonds are, the market size and growth in India, the reasons behind this surge, and a look at some of the key players shaping the future of the industry.
What Are Lab-Grown Diamonds?
Lab-grown diamonds, as the name suggests, are diamonds that are created in a laboratory setting rather than being mined from the Earth. If you were to place a lab-grown diamond next to a mined one, even a seasoned gemologist would find it challenging to tell them apart without the aid of specialized equipment. These diamonds share the same physical, chemical, and optical properties as their mined counterparts.
The process of creating these diamonds involves replicating the extreme conditions under which mined diamonds form. Typically, there are two methods used: High-Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). Each method has its own merits and results in diamonds that are as real as those extracted from the ground, but without the ethical and environmental baggage.
One of the most significant reasons for the growing popularity of lab-grown diamonds is their ethical and environmental benefits. Unlike traditional diamond mining, which has been associated with severe environmental degradation and unethical labor practices, lab-grown diamonds offer a clean alternative. Consumers can now indulge in the luxury of diamonds without the guilt associated with their origins.
The Lab-Grown Diamond Market in India
India has always been a powerhouse in the global diamond industry, but now, it’s leading the charge in the lab-grown diamond market. According to the latest 2022 data, the lab-grown diamond jewelry market in India is currently valued at around $264.5 million, a significant increase from previous years. This market is projected to reach a staggering 1,192.3 million by 2033. This growth is fueled by a combination of technological advancements, cost advantages, and an increasing demand for sustainable luxury.
Why Lab-Grown Diamonds Are Booming in India
So, what’s driving this massive growth? Let’s break down the key factors:
Technological Advancements
India has always been quick to adapt to new technologies, and the lab-grown diamond sector is no exception. By embracing cutting-edge techniques like CVD and HPHT, Indian manufacturers are now producing high-quality diamonds with unparalleled precision. These methods not only ensure the production of superior diamonds but also allow for the creation of Type IIA diamonds, which are among the purest forms of diamonds available. Type IIA diamonds are completely devoid of nitrogen impurities, making them exceptionally rare and highly sought after, even in their mined form. This technological prowess places Indian manufacturers at a competitive advantage on the global stage, enabling them to produce diamonds that rival the best the mined diamonds has to offer.
Cost-Effectiveness
Let’s face it—diamonds are expensive. But lab-grown diamonds offer a solution that doesn’t break the bank. These diamonds can be produced at a fraction of the cost of their mined counterparts. This cost advantage makes them accessible to a broader audience while still maintaining the quality that diamonds are known for. It’s no wonder that both investors and consumers are flocking to lab-grown diamonds as a viable and affordable alternative.
Environmental and Ethical Consciousness
The world is becoming more environmentally conscious, and consumers are increasingly seeking out products that align with their values. Lab-grown diamonds fit perfectly into this narrative. Free from the ecological damage and unethical labor practices often associated with diamond mining, these diamonds are a more sustainable and responsible choice. In India, this shift towards sustainability has resonated with a growing number of consumers who are eager to make ethical purchases without sacrificing luxury.
Get Your Kira Mobile Apps Now On The App Store & Google Play!
Skilled Workforce
India’s legacy in diamond craftsmanship is well known. The same skilled artisans who have been cutting and polishing mined diamonds for generations are now applying their expertise to lab-grown diamonds. This continuity of craftsmanship ensures that lab-grown diamonds produced in India are of the highest quality, with meticulous attention to detail in every facet.
Government Support
Recognizing the potential of the lab-grown diamond industry, the Indian government has stepped in to offer support. From financial incentives to research and development grants, the government is actively promoting innovation in this sector. These initiatives have created a favorable environment for businesses to thrive, ensuring that India remains a leader in the global lab-grown diamond market.
View this post on Instagram
Global Influence and India’s Role
India’s influence in the global lab-grown diamond industry isn’t just about numbers; it’s also about making a mark on the world stage. A vivid example of this came during a state visit to the United States in the summer of 2023, where India’s Prime Minister Narendra Modi gifted a 7.5-carat lab-grown diamond to President Joe Biden and First Lady Jill Biden. This wasn’t just any diamond—it was a type 2A diamond, one of the purest forms, representing India’s growing expertise and prominence in the global diamond industry.
To give you some context, only about 1-2% of mined diamonds are classified as type 2A, a category reserved for the most chemically pure diamonds. These are the kind of diamonds that are highly sought after, with famous examples including Elizabeth Taylor’s 33.19-carat Krupp diamond, which fetched nearly $8.8 million at auction, and the legendary Koh-i-Noor. The gift of such a diamond wasn’t just a gesture; it was a statement about India’s capabilities in producing diamonds that rival the best the natural world has to offer.
The Global LGD Jewelry Markets
India’s lab-grown diamonds are also making waves in the global jewelry market. The market for lab-grown diamond jewelry reached a whopping $14 billion in 2024, a figure that underscores the sector’s explosive growth. This represents a significant increase from just $12 billion in 2022, and for the first time, lab-grown diamonds accounted for more than 12% of total diamond jewelry sales globally.
In fact, July 2024 marked a significant milestone where lab-grown diamonds matched mined diamonds in unit sales, holding a 50/50 share of the market. This parity in sales highlights a growing consumer preference for lab-grown diamonds, driven by their affordability and the increasing awareness of their ethical and environmental advantages.
Major global jewelry brands like Pandora and Signet have embraced lab-grown diamonds as a cost-effective alternative to mined diamonds. This shift is largely due to the price-conscious nature of key markets and the importance of carat size in consumer decisions. It’s worth noting that a one-carat lab-grown diamond can be 70% to 90% cheaper than its mined counterpart, making luxury more accessible to a wider audience.
Insights from Kira Diam’s Journey
To understand the journey and rapid growth of Kira, it’s essential to hear from the source. In an exclusive interview with Rajesh Lakhani, Founder Partner of Kira, we gained valuable insights into the company’s success and the broader lab-grown diamond industry.
Check out an exclusive interview with Rajesh Lakhani, Founder Partner of Kira, we gained valuable insights into the company’s success and the broader lab-grown diamond industry.
The Beginning of Kira Diam
Kira, often referred to as the younger sister of Kiran Gems—the world’s largest mined diamond company—entered the lab-grown diamond market around October 2022. Despite being relatively new, Kira has already made a significant impact globally. Rajesh Lakhani shared that the company focuses on offering a wide range of certified and non-certified loose diamonds, from one carat up to 10-12 carats, along with smaller sizes starting from 18 cents. This diverse product range has allowed Kira to cater to various market segments, from luxury buyers to those seeking more affordable options.
Navigating Early Challenges
Starting a new venture is never without challenges, and Kira was no exception. However, Lakhani views these challenges not as obstacles but as essential steps in building something new. Establishing a brand, creating market awareness, and setting up operations were all part of the journey. He emphasized that success is a combination of hard work, a dedicated team, and the trust of customers and partners. With approximately 3,000 CVD reactors, Kira controls nearly half of India’s lab-grown diamond production capacity—a remarkable feat in such a short time.
Expanding Global Reach
Kira isn’t just making waves in India; the company has also expanded its operations internationally, including a diamond-growing unit in the UAE. While these diamonds are grown abroad, the cutting and polishing work is done in India, further cementing India’s reputation as the leader in diamond craftsmanship. Lakhani highlighted the importance of this expansion, noting that it adds to Kira capacity and strengthens its global presence.
Trade Shows and Market Presence
Kira has been actively participating in major trade shows, such as JCK in the U.S. and the IJJS in India. Lakhani shared that the response at JCK 2024 was overwhelmingly positive, with continuous interest from both chain stores and independent retailers. This engagement underscores the growing demand for lab-grown diamonds, even in established markets like the United States.
Adapting to Market Dynamics
Lakhani also addressed the current market dynamics, particularly the fluctuating prices of polished diamonds. He explained that as new technologies enter the market, prices often experience a period of adjustment. However, he remains optimistic, believing that after stabilization, the market will return to healthy margins, benefiting both the wholesale and retail sectors.
Looking Ahead: Future Prospects
When asked about future prospects, Lakhani emphasized that Kira sees potential in markets worldwide, not just in specific regions. The company is well-positioned to capitalize on the global expansion of lab-grown diamond jewelry, which is expected to continue growing in the coming years. Additionally, Kira is already serving the market for fancy-colored diamonds, such as yellow, pink, blue, and green, which are gaining popularity for their unique appeal.
Kira Diam: Leading the Way in the Lab-Grown Diamond Sector
When it comes to lab-grown diamonds in India, one name stands out—Kira. As the largest CVD lab-grown diamond manufacturer in the country, Kira is setting the standard for quality and innovation in this rapidly growing industry. With over three decades of experience, Kira has established itself as a global leader in the production of top-notch lab-grown diamonds.
At Kira state-of-the-art manufacturing facilities, cutting-edge technology is used to create diamonds that are virtually indistinguishable from mined ones. Each diamond is crafted with precision, adhering to the 4Cs of diamond quality—cut, clarity, color, and carat weight. Whether it’s a round cut, oval cut, radiant cut, emerald cut, pear cut, or princess cut, Kira offers a wide range of options to suit every preference.
As a GIA and IGI-certified diamond manufacturer, Kira is committed to pushing the boundaries of the lab-grown diamond sector. The company’s dedication to quality and innovation ensures that it will continue to play a pivotal role in India’s diamond revolution.
Final Thoughts
India’s rise as a leader in the lab-grown diamond industry is a testament to its adaptability, technological advancements, and commitment to sustainability. The country’s rich heritage in diamond craftsmanship has seamlessly transitioned into the modern era, positioning India as a key player in the global jewelry market.
As consumer preferences continue to evolve towards more ethical and environmentally friendly choices, the future of India’s lab-grown diamond industry looks incredibly promising. Companies like Kira are not just participating in this revolution—they’re leading it. By continuing to innovate and address the challenges ahead, India’s lab-grown diamond sector is poised to redefine luxury for the next generation.
Whether you’re a consumer looking for a stunning, guilt-free diamond or an investor eyeing the next big thing in the jewelry market, lab-grown diamonds are undoubtedly the future. And with India at the helm, that future looks brighter than ever.
