By Saurabh Shukla
New Delhi: Due to its cost-effectiveness and the similarity to original diamonds, many people in the gold and jewellery industry are now venturing into the lab-grown diamond (LGD) market. They believe purchasing the lab-grown diamond is a better option than a mined one for two main reasons — they are cheaper and hold the same properties as mined diamonds.
Akoirah, a Mumbai-based lab-grown diamond jewellery brand, has opened a test showroom in Pune and plans to open 100 stores across India within the next three years. The brand is owned by Augmont, associated with the gold industry and offers a comprehensive suite of gold solutions including gold loans, digital gold, gold coins & bars, old gold selling and jewellery.
As per the company, lab-grown diamonds are transforming the jewellery industry, offering a brilliant, sustainable alternative to mined diamonds. The global LGD market is projected to reach $1.2 billion by 2033, yet there remains a lack of trusted players in India—a gap that Augmont is poised to fill.
"The penetration of mined diamond jewellery in India is less than 5 per cent whereas 95 per cent of consumers want to own diamonds. Mined diamonds have negative returns and hence they are not an investment choice for Indian consumers, who are the smartest when it comes to value investments. With a trusted network of over four crore customers, over 5,000 jewellers and over 150 partner brands, Augmont combines cutting-edge technology with an unwavering commitment to trust, transparency, and innovation," Ketan Kothari, director of Augmont, told ETV Bharat.
A recent report by the Global Trade Research Initiative (GTRI) suggests that global demand for lab-grown diamonds is expanding because they look like natural diamonds but cost only 6 to 10 per cent as much, making them more affordable for consumers. The Indian industry is expanding rapidly due to rising domestic and global demands and increased production.
The report suggests that in the fiscal year 2024, India produced 16 million carats of lab-grown diamonds, mainly in Surat and Mumbai. Valued at an estimated $2 billion per year, India has become a key player in the sector, with much of its revenue coming from exports to major markets like the United States and Europe. In FY2024, India imported lab-grown diamonds (both rough and cut and polished) worth US $1,384.2 million and exported $1,344.1 million.
Key producers of lab-grown diamonds include China, the US and India. Globally, the lab-grown diamond market is expanding, especially in the USA, Europe, and Asia. The global market was worth $26 billion in 2023 and is expected to reach $50 billion by 2030, with 40 million carats produced in FY24. This is still less than natural diamond production, which is around 110-120 million carats per year.
Why do People Buy Lab-Grown Diamonds?
Lab-grown diamonds look just like natural diamonds, with the same sparkle and strength. They are also much cheaper, often costing ten times less. This substantial price difference makes lab-grown diamonds a more affordable option for consumers, even though they look and feel the same as natural diamonds. They don't come with the environmental and ethical issues associated with natural diamond mining. People who care about these issues may choose lab-grown diamonds because they are a more eco-friendly and ethical option. Natural diamonds come in various shapes, while lab-grown diamonds are usually square or rectangular, making them easy to cut and polish. Lab-grown diamonds are produced in a rough form and need to be cut and polished, just like natural diamonds. The value of a cut and polished lab-grown diamond is 6-8 times higher than its rough version.
Lab-Grown Diamonds vs Natural Diamonds
Lab-grown diamonds are chemically, physically and optically identical to natural diamonds, but they differ significantly in their production process, cost and environmental impact. Natural diamonds are formed over billions of years deep in the Earth's mantle under extreme pressure and temperature. They are extracted through mining, a process that is often environmentally disruptive and labour-intensive. Major producers of natural diamonds include countries like Russia, Botswana, Canada and Australia.
Lab-grown diamonds are created in a controlled laboratory environment within weeks. Two primary methods used in the process are High-Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). HPHT involves placing a diamond seed in a chamber with carbon, subjecting it to high pressure and temperature, leading to the formation of a diamond. CVD involves placing a diamond seed in a vacuum chamber with carbon-rich gas, where carbon atoms deposit onto the seed and crystallise into a diamond. The production process of lab-grown diamonds is technologically advanced and energy-intensive, which contributes to the high operational costs associated with the industry.
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