Lab Grown Diamonds, too, are forever!

COLIN SHAH Chairman, GJEPC The future of LGDs looks very bright as they are well-accepted by millennials. When you look at exports from India, there has been tremendous growth Y-o-Y in the last few years. In 2020, the global Lab Grown Diamonds market size was valued at $19.3 billion, and is projected to reach $49.9 billion by 2030, registering a CAGR of 9.4% from 2021 to 2030, as per Allied Market Research.Lab Grown Diamonds (LGDs) are no longer just a novelty item – they mean business. Not only are they gaining ground (and acceptance), they are also proving to be a major disruptive force in the diamond jewellery industry, globally, as well as within India. Millennials and young adults are particularly drawn to them in view of their eco-friendly tag and pocket-friendly pricing.

When LGDs started becoming popular in the world of fashion jewellery, they faced stiff resistance from mined diamond producers. To this day, LGDs have to fight whisper campaigns that they are not real diamonds. The fact, however, is that LGDs are 100% real diamonds, and not imitation diamonds, as cubic zirconia or moissanite are. They have the same chemical, physical and optical properties as mined diamonds.

Regardless of whether LGDs are manufactured using the Chemical Vapor Deposition (CVD) or the High Pressure High Temperature (HPHT) method, they are, in no way, different from mined diamonds. If anything, the lustre of LGDs is better as they are composed of pure carbon and have no traces of nitrogen in them. And the price difference is considerable — a one-carat mined diamond could cost as much as Rs 5 lakh, while its lab-grown counterpart could be priced at just Rs 1-2 lakh.

So strong has been the pull of LGDs that natural diamond manufacturers are looking at diversifying into this category, with some notable names already having done so. The diamond industry is now looking at LGDs as an alternative category, and not a threat or a replacement, with industry observers saying that the two categories will complement each other and grow the overall market.

POOJA SHETH Managing Director & Founder, Limelight Lab Grown Diamonds, Mumbai Consumers are now more educated about non-mined diamonds and how they are grown in labs, and yet remain 100% real. Millennial consumers, particularly, are drawn to them. The acceptance of LGDs by Indians is increasingly reflecting in the sales of LGD-studded jewellery across the country. Moreover, since the second wave of COVID, consumers have started ‘revenge shopping’, and are looking to indulge in luxury purchases. Yet, the consumer remains extremely price conscious and is looking for value-for-money across all shopping segments. As a result, more and more consumers are now opting for LGDs.India all set to become LGD hub
LGDs have already become an established product category in India, with several dedicated LGD producers within the country having made a name for themselves. Going forward, India is expected to have a major role to play in further shaping the industry worldwide, not just because of its production capacity, but also because of a huge domestic consumption potential.

Says Vraj Trivedi, Managing Director, Maitri Lab Grown Diamonds, Surat, “As far as growing diamonds using CVD technology is concerned, India is the largest grower of LGDs in the world. In the very near future, we will catch up with China, which uses the HPHT method for LGDs, in-terms of carat quantity. And if we are talking about the market from the consumer side, it is developing steadily vis-àvis the world market. India is set to become a major hub for production, as well as processing of LGDs. With the help of the technological breakthroughs, costefficient production of gem-quality stones and growing consumer awareness regarding LGDs, India’s projected LGD output is estimated to be 3 million carats in 2022. India accounts for about a quarter of the estimated global LGD output of 11 to 12 million carats.” LGDs are increasingly being accepted by Indian consumers as an option to natural diamonds owing to their environmentfriendly nature and affordability. “Awareness about LGDs is spreading fast in India. Consumers are now more educated about nonmined diamonds and how they are grown in labs, and yet remain 100% real. Millennial consumers, particularly, are drawn to them. The acceptance of LGDs by Indians is increasingly reflecting in the sales of LGD-studded jewellery across the country. Moreover, since the second wave of COVID, consumers have started ‘revenge shopping’, and are looking to indulge in luxury purchases.

PARAG AGRAWAL Co-founder and CEO, Fiona Diamonds, Bangalore The market potential of LGDs seems to be huge, but currently, there is no awareness amongst consumers regarding LGDs. We need more and more retailers to start promoting them in order to create a bigger market. More awareness campaigns and availability on shelves of retailers is what will gain the trust of people. Acceptance comes only post awareness and practically seeing things. Once the consumer looks at designer jewellery made in LGDs at 30% of the cost of natural diamonds, acceptance will follow naturally.Yet, the consumer remains extremely price conscious and is looking for value-for-money across all shopping segments. As a result, more and more consumers are now opting for LGDs, given they are exactly the same but half-priced, because they save up on the mining costs. And we have seen this culminate in tremendous sales, with 60% growth in revenue Y-o-Y, and great response across all our partner stores pan India, including in Mumbai, Delhi, Hyderabad, Kolkata, Bangalore, Ranchi, Goa, etc,” says Pooja Sheth, Managing Director & Founder, Limelight Lab Grown Diamonds, Mumbai.

Market drivers in coming days
With the mining activity becoming more and more complex and difficult, and natural diamonds being a finite commodity, it is obvious that LGDs will be the go-to option of manufacturers and consumers alike. Mined diamonds are becoming rarer by the day as no new significant deposits have been discovered in the past 30 years. LGDs, on the other hand, can be manufactured in unlimited quantities. Sheer availability is set to tilt the scales in favour of LGDs in the coming times. An important milestone in the journey of LGDs was when De Beers, which had opposed LGDs for long, launched Lightbox, a subsidiary that sells LGDs, in 2018. Following this, in May 2021, Pandora, the world’s biggest jeweller, said it was shifting exclusively to LGDs because “it’s the right thing to do”. The market has been growing consistently since then Says Dr Snehal Patel, CEO, Bhanderi Diamonds, Surat, “The LGD market is growing globally as well as domestically. The CVD segment led in terms of market share in 2020, and is expected to retain its dominance throughout the forecast period. CVD diamonds are a great replacement for natural diamonds. They are the best option in jewellery nowadays as manufacturing them is ethically kind towards people and the environment. People want to keep their foundation of love not by harming anyone but by making the best of technology. Moreover, they are applicable in all kinds of jewellery in various shapes, sizes, and colours.”

Industry stakeholders say in the coming days, the market drivers will be not just the environmentfriendly tag and lower prices, but also the infinite nature of the product, better sheen and the possibility of better designs. Opines Colin Shah, Chairman, Gems and Jewellery Export Promotion Council (GJEPC), “The future of LGDs looks very bright as they are well-accepted by millennials. When you look at exports from India, there has been tremendous growth Y-o-Y in the last few years. In 2020, the global Lab Grown Diamonds market size was valued at $19.3 billion, and is projected to reach $49.9 billion by 2030, registering a CAGR of 9.4% from 2021 to 2030, as per Allied Market Research.”

DR SNEHAL PATEL CEO, Bhanderi Diamonds, Surat The LGD market is growing globally as well as domestically. The CVD segment led in terms of market share in 2020, and is expected to retain its dominance throughout the forecast period. CVD diamonds are a great replacement for natural diamonds. They are the best option in jewellery nowadays as manufacturing them is ethically kind towards people and the environment. People want to keep their foundation of love not by harming anyone but by making the best of technology. Moreover, they are applicable in all kinds of jewellery in various shapes, sizes, and colours.Industry endeavours to promote LGDs

Some sections of the industry believe that there is a need to start from scratch when it comes to promoting the usage of LGDs. Says Parag Agrawal, Co-founder and CEO, Fiona Diamonds, Bangalore, “The market potential of LGDs seems to be huge, but currently, there is no awareness amongst consumers regarding LGDs. We need more and more retailers to start promoting them in order to create a bigger market. More awareness campaigns and availability on shelves of retailers is what will gain the trust of people. Acceptance comes only post awareness and practically seeing things. Once the consumer looks at designer jewellery made in LGDs at 30% of the cost of natural diamonds, acceptance will follow naturally.

“At Fiona, we have been promoting LGDs with the tagline ‘Shine responsibly’ and ‘Change your Mined’, through which we urge customers to think of LGDs good as a naturally conceived baby – just that the process is different. So, if more and more such campaigns are repeated, then people will correctly perceive that LGDs are eco-friendly and conflict-free diamonds.” Diamond jewellery retailers agree that the LGD industry needs to orchestrate a full-fledged ‘as good as mined-diamonds, or even better’ promotional campaign to educate consumers about the advantages this category enjoys over mined diamonds.

VRAJ TRIVEDI Managing Director, Maitri Lab Grown Diamonds, Surat As far as growing diamonds using CVD technology is concern, India is the largest grower of LGDs in the world. In the very near future, we will catch up with China, which uses the HPHT method for LGDs, in-terms of carat quantity. And if we are talking about the market from the consumer side, it is developing steadily vis-à-vis the world market. India is set to become a major hub for production, as well as processing of LGDs.Says Dipu Mehta, Managing Director & Promoter, ORRA Fine Jewellery, Mumbai, “A lot of education on the part of manufacturers and more importantly, retailers, is required to open up people’s minds. The diamond speaks for itself. The more consumers see and experience the diamond and its natural properties, the more they will have no doubt about the truth about LGDs -- that these are real diamonds. A diamond is a diamond -- whether created 150 kms below the earth’s surface over a million years, or in a laboratory in two to three weeks. The important characteristic of the diamond comes later -- the cut which guarantees its sparkle and dazzle. Neither diamond is lesser or better -- it is the choice of the consumer.”

Incidentally, ORRA was already into natural diamond jewellery, but came out with a sub-brand, DIVAA, exclusively for LGDs, indicating the growing acceptance by diamond jewellery retailers that LGDs are here to stay.

A report published by Frost & Sullivan in 2015 said that due to limitation of resources, the mined diamond supply will decline to 62m carats by 2030, while the demand will increase, leaving a deficit of nearly 160m carats. Commenting on this, Sheth sums up the situation aptly when she says, “This huge gap between demand for rough diamonds and the depleting supply of mined diamonds is an opportunity to be filled in 10 years with lab-grown CVD diamonds. With India as a leading producer and exporter of CVD diamonds today, it stands to gain from this situation.” And from the look of it, Lab Grown Diamonds are all set to be a girl’s best friend!