Why lab-grown diamonds are booming in India—and what's driving first-time buyers to skip mined stones

Mint

29-04-2025

Preeti, 56, already owned natural diamond solitaires and rings—but it wasn't until last year that she began buying lab-grown ones. 'One can hardly tell the difference; plus it's a good way to continue expanding my collection," she said.
Preeti is part of a growing cohort of Indian shoppers, ranging from first-time buyers to seasoned collectors, who are increasingly turning to lab-grown diamonds (LGDS).
Once dismissed as niche or inferior, LGDs are gaining traction not just for their lower price point—typically 30–40% cheaper than mined stones of similar grade—but also because of changing consumer attitudes toward jewellery. Retailers say today's buyers are more value-conscious, more open to design variety, and more willing to view LGDs as aspirational, not merely affordable.
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'The lab-grown diamond consumer in India today is young, educated, and value-driven," said Chaitanya V Cotha, executive director at C. Krishniah Chetty Group and its LGD-focused sub-brand crash.club. 'Over 70% of our buyers are aged between 26–50—a mix of millennials, Gen Z professionals, newlyweds, and independent women making self-purchases. Many are indeed first-time buyers."
Cotha adds that a growing share of clients are now second-time or repeat buyers—including high-net-worth individuals, well-travelled shoppers, and brides upgrading their carat size or expanding their personal collections.
Nearly 38% of clients purchasing lab-grown diamonds above
₹
2 lakh already own natural diamonds, he said, citing internal estimates.
This growing interest in
lab-grown diamonds
stems from a mix of factors: falling prices that have widened the gap with natural diamonds, better consumer awareness around the product's quality and value, and a cultural shift away from jewellery as a traditional store of wealth.
Retailers say that for younger buyers and modern professionals, design, affordability, and immediacy often outweigh long-term resale or investment value concerns.
The Indian market for lab-grown diamonds was pegged at $2.61 billion in 2023 by consulting firm Technopak and is expected to more than triple to $8.31 billion by 2032. The Indian diamond jewellery market is projected to grow to $17 billion by 2031, out of a total Indian gems and jewellery market expected to reach $120 billion from $79 billion in 2021, according to 2024 estimates by the Gem and Jewellery Export Promotion Council.
Still, India remains a price-sensitive and gold-dominated market. Diamond acquisition, while rising, is far slower here than in established markets like the US. Retailers say that's beginning to shift.
Take Lisa Mukhedkar, founder and CEO of Aukera Grown Diamond Jewellery, who launched her first store in Bengaluru in 2023. Initially, there was very little consumer awareness, she recalled, with their first store often empty.
Still, she doubled down—strategically opening stores near major natural diamond retailers. 'Today, I don't think there's a woman looking for diamonds who hasn't heard of LGDs. Very often, they walk in just to check it out—and end up converting on the first visit."
'There are enough skeptics in the market too," Mukhedkar said. 'Some may visit the store but go back to do due diligence and visit more stores. There are also those who wouldn't be caught wearing anything other than
natural diamonds
."
According to Mukhedkar, there's no longer a 'typical' LGD buyer and anyone shopping for fine jewellery is a potential customer. 'Those upgrading from gold often come to us," she said, adding that in many cases, consumers are skipping mined diamonds altogether and using LGDs as their entry point into the category.
Occasions like birthdays, anniversaries, promotions, and weddings are still major sales drivers, but the buying journey is increasingly more self-directed.
There is a growing trend of self-purchase, with rings as bestsellers and an average ticket size of
₹
40,000–
₹
1 lakh, said Vidita Kochar, co-founder of Jewelbox, which launched in 2022 and now operates eight stores. 'A good number of our customers are first-time diamond buyers—people who may have postponed buying due to the traditional price tag or low returns. Now they see LGDs as accessible and practical."
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Behind this demand surge is another force reshaping the category: price. A glut in global supply and a rush of new entrants have dramatically altered lab-grown diamond pricing.
An oversupply of lab-grown diamonds and a flood of new players have driven prices sharply lower. Unlike mined diamonds, whose rates are often determined by the supply available in the market, lab-grown stones have seen more erratic pricing due to rapid production scale-up.
Globally, the downward trend is stark. Between 2015 and 2024, the price of a 1.5-carat lab-grown diamond fell by as much as 83%, according to a recent report by the Natural Diamonds Council. In contrast, natural diamond prices have risen by an average of 3% annually over the past 50 years, despite fluctuations.
However, retailers believe that LGD prices are now stabilizing as demand catches up with supply.
"This (lab-grown diamond) is a commodity and we are not insulated from price fluctuations. There was a period when everyone thought this was the next big thing and they put up machines to supply lab-grown diamonds. However, it's not that simple, and there has been a shakeout on the supply end. So, yes there was a glut in the market; but prices have clearly stabilized because demand has increased too. While there was pressure on pricing we do see it stabilize going forward," said Mukhedkar.
Kochar said consumer sentiment has 'shifted meaningfully" in just the last couple of years. 'What started as a niche segment is now going mainstream. Consumers today are more aware of the 4Cs [cut, clarity, carat, color] and more confident in what they're buying."
Others echo this shift. 'We're seeing everyone buying lab-grown diamonds now," said Toshik Anand, founder of Delhi-based brand Better Diamonds. 'From 20-somethings getting their first piece to people in their 50s or 60s who've bought natural diamonds before and are now upgrading to something bigger or more modern." The shift isn't limited to any one income group, he adds. 'Price matters, of course—but it's not the only reason people are making the switch. It's also value and design."
At Akoirah, the LGD brand from bullion company Augmont, founder Namita Kothari said demand has picked up for solitaire earrings, followed by rings and pendants. 'The average price point sits around
₹
50,000, though we see and have seen a mix of entry-level and high-end buyers. Sensitivity to pricing exists, though it is compensated by increasing familiarity with design and craftsmanship."
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Like others, Kothari notes that affluent customers are returning for second or third LGD purchases, especially for large solitaires or statement pieces without the premium of mined diamonds.
Across the board, retailers say the message is clear: the lab-grown diamond is no longer a compromise. It's becoming a category in its own right—backed by consumer curiosity, expanding access, and a new definition of luxury.