How many of you remember the catchphrase “Heera Hai Sada Ke Liye”? Though a brand tagline, this iconic phrase encapsulated the enduring allure and perceived value of diamonds for generations. It placed “diamond ownership” on a pedestal that was accessible only to a few. Fast forward to today, the diamond industry is undergoing a significant transformation that challenges this traditional notion while simultaneously making these precious gems more accessible than ever before.

The world of luxury jewellery is undergoing a significant transformation, thanks to the rise of lab-grown diamonds. These man-made gems are revolutionising the industry by offering a more accessible, ethical, and innovative alternative to mined diamonds. The lab-grown diamond market has experienced rapid growth in recent years, reflecting this shift in consumer preferences and industry practices. According to recent data, the market size is expected to grow from $23.3 billion in 2023 to $25.68 billion in 2024, representing a compound annual growth rate (CAGR) of 10.2 per cent. This growth is projected to continue, with market volume expected to reach approximately 19.2 million carats by 2030.

A boon for value seekers

One of the most compelling aspects of lab-grown diamonds is their affordability. These gems typically cost 80–95 per cent less than their mined counterparts, making luxury jewellery significantly more accessible to budget-conscious consumers. To put this into perspective, a natural 2-carat, round-cut diamond with high-quality colour and clarity ratings costs about $13,000-14,000, whereas an equivalent lab-grown diamond sells for about $1,000.

This dramatic price difference is primarily due to the streamlined supply chain associated with lab-grown diamonds. Unlike mined diamonds, which require extensive and costly extraction processes, lab-grown diamonds are created in controlled environments, not involving any mining or extraction.

Furthermore, ongoing technological advancements are continually improving the efficiency and cost effectiveness of producing lab-grown diamonds. As production methods become more refined, manufacturers can pass these savings on to consumers, further reducing the price gap between lab-grown and mined diamonds.

An ethical choice for the environmentally conscious

For many consumers, particularly millennials and Generation Z, the appeal of lab-grown diamonds extends beyond their price point. These gems are increasingly perceived as a more ethical and environmentally friendly choice compared to mined diamonds.

From an environmental perspective, lab-grown diamonds have a significantly lower carbon footprint. According to a study by Frost & Sullivan, mining diamonds results in carbon emissions of 57,000 grammes per carat, while lab-grown diamonds release just 0.028 grammes per carat. However, it’s worth noting that the energy consumption in lab-grown diamond production varies by region. In 2023, India’s production of cut and polished lab-grown diamonds had the largest carbon footprint globally, at 612 kilogrammes of CO2 equivalent per carat, followed by China at 523 lograms. Despite this, the environmental depletion and impact of lab-grown diamonds is considerably less than that of mined diamonds.

Innovation for the fashion-forward

Lab-grown diamonds aren’t just mimicking their mined counterparts; they’re pushing the boundaries of diamond design. The controlled environment in which these diamonds are created allows for greater experimentation with cuts, colours, and shapes that might be difficult or impossible to achieve with natural diamonds.

This innovation is sparking a new wave of creativity in jewellery design, with avant-garde pieces that appeal to fashion-forward individuals and collectors. From unique colour combinations to cutting-edge shapes, lab-grown diamonds are offering exciting new possibilities for those who seek distinct and trendsetting jewellery designs.

Technological advancements

The production of lab-grown diamonds relies on two primary methods: high-pressure high temperature (HPHT) and chemical vapour deposition (CVD). HPHT simulates the extreme conditions found in the Earth’s mantle, while CVD involves depositing carbon atoms layer by layer onto a substrate. Ongoing improvements in these technologies have enhanced the quality, efficiency, and customisation potential of lab-grown diamonds.

India’s growing role

India has emerged as a significant player in the lab-grown diamond market. The country produces more than three million lab-grown diamonds a year, accounting for 15 per cent of global production. Between April and October 2023, Indian lab diamond makers exported 4.04 million carats, a 42 per cent year-on-year increase. This growth contrasts sharply with the natural diamond sector in India, which saw a more than 25 per cent drop in exports over the same period.

Democratising luxury

By addressing key concerns of modern consumers—affordability, ethics, and innovation—lab-grown diamonds are effectively democratising the luxury jewellery market. They maintain the high quality and brilliance associated with natural diamonds while significantly reducing costs and addressing ethical concerns.

This combination of factors is allowing a much broader audience to access and enjoy high-end, exquisite jewellery pieces that were once out of reach for many. Whether it’s an engagement ring, a special occasion gift, or a self-indulgent purchase, lab-grown diamonds are making it possible for more people to own and appreciate luxury jewellery.

As technology continues to advance and consumer awareness grows, lab-grown diamonds are likely to play an increasingly significant role in the jewellery industry. With an estimated 90 per cent of companies that previously cut only natural diamonds now entering the lab-grown diamond space, the shift in the industry is undeniable. Lab-grown diamonds represent not just a product but a shift in how we think about luxury, accessibility, and responsible consumption in the modern world.

Lab-grown diamonds are creating a new world where “Heera Hai Sab Ke Liye”! They represent a shift in how we think about luxury and responsible consumption. The allure of diamonds remains, but now, with the advent of lab-grown alternatives, that allure is attainable for a much wider audience. As we move forward, the sparkle of diamonds—whether from the earth or from a lab—continues to captivate but is now within reach for many more admirers of fine jewellery.

The writer is is the co-founder of Jewelbox