According to a report by CareEdge Advisory, the export of lab-grown diamonds is projected to experience a rise of 7-9% in fiscal year 2024-25, with an expected value of USD 1,500-1,530 million, as the demand for naturally mined diamonds remains sluggish. The gems and jewellery industry is increasingly relying on the expanding lab-grown diamond market to counteract the effects of reduced demand for natural diamonds amidst global economic disruptions.
Despite a recent decline in lab-grown diamond exports, there is hope for an upturn in demand for lab-grown diamonds in fiscal year 2024-25, primarily driven by factors like their competitive price point, environmental friendliness, and the intense competition from India compared to other major lab-grown diamond producers globally. India stands as the second-largest lab-grown diamond producer after China, contributing over three million lab-grown diamonds annually and accounting for 15% of global production.
In addition to India and China, countries such as the US, Singapore, and Russia are also prominent manufacturers of lab-grown diamonds. The market for lab-grown diamond jewellery in India was valued at USD 264.5 million in 2022, and the domestic market for lab-grown diamonds is expected to reach USD 300 million. The declining rupee is expected to offer some support to the export-dependent industry, while high-quality lab-grown diamonds with proper certification, produced using advanced equipment and processes, are predicted to attract more international consumers, thereby boosting exports.