The jewelry industry in India has been witnessing a revolution in the recent past with the introduction of lab-grown diamonds. The trend of lab-created diamond jewelry has been growing rapidly in India, and it has been gaining traction among millennials who are looking for ethically sourced, sustainable, and affordable options.
In this blog, we will explore the future of lab-created diamond jewelry in India, backed by statistics and industry reports.
The Current State of Lab-Created Diamond Jewelry in India
According to a report published in The Times of India, the demand for lab-grown diamonds in India has been growing at a CAGR of 20% in the last five years. The report also suggests that the pandemic has further accelerated the growth of this industry in India as consumers have been increasingly looking for affordable options that do not compromise on quality.
The report highlights that the Indian lab-grown diamond jewelry market is estimated to be around Rs 250-300 crore, and it is expected to grow by 30-40% in the next three years. Furthermore, the current budget has also axed the import duty on the seed needed for the manufacture of lab-grown diamonds making it even cheaper. Also, a higher budget has been allocated to further the research on this topic in IITs and NITs, making India one of the potential hubs of lab-grown diamond manufacturing in the coming yers.
Factors Driving the Growth of Lab-Created Diamond Jewelry in India
Ethical and Sustainable: The lab-created diamond jewelry is seen as a sustainable and ethical option as it is not mined from the earth, which reduces the environmental impact and the risk of human rights abuses associated with traditional diamond mining.
Innovation: The technology used to create lab-grown diamonds has advanced significantly in the past few years, leading to the creation of diamonds that are of the same quality and appearance as mined diamonds. The availability of a variety of shapes, sizes, and colors of lab-grown diamonds has also expanded the options for consumers.
Challenges Facing the Lab-Created Diamond Industry in India
While the growth prospects for the lab-created diamond industry in India are promising, there are a few challenges that the industry must overcome to sustain this growth.
Consumer Awareness: One of the biggest challenges faced by the lab-created diamond industry is the lack of consumer awareness. Many consumers are not aware of the differences between mined and lab-grown diamonds, and the benefits of choosing lab-grown diamonds. Therefore, educating consumers about lab-grown diamonds and their advantages is crucial to increase the demand for these products.
Regulatory Framework: The lab-created diamond industry in India is currently unregulated, which has led to some concerns about the authenticity and quality of lab-grown diamonds. Establishing a regulatory framework and standardization of lab-grown diamonds can help address these concerns and increase consumer confidence in these products.
The Future of Lab-Created Diamond Jewelry in India
The lab-created diamond industry in India has a bright future ahead. According to a report by ResearchAndMarkets.com, the Indian lab-grown diamond market is expected to grow at a CAGR of 11.3% during the period 2021-2026. The report also suggests that the increasing consumer preference for sustainable and ethical products, along with the affordability of lab-grown diamonds, will continue to drive the growth of this industry.
The lab-created diamond jewelry industry in India is witnessing a rapid growth, backed by the increasing demand for sustainable, ethical, and affordable products. While the industry faces a few challenges, the prospects for growth in this sector are promising. With the industry expected to grow at a CAGR of over 11% in the next few years, it is clear that lab-grown diamonds are here to stay in India.