The biggest tectonic shift in fine jewellery is happening above ground—are you ready to invest? Lab-Grown Diamonds (LGDs) are emerging as the fastest-growing segment in the global gems and jewellery market, with their share expected to rise from 3–4% in 2024 to 6% by 2029. LGD growth is expected to outpace natural diamond and gold jewellery market growth by 2- 3x.
Multiple reinforcing levers are accelerating consumer adoption of LGD jewellery. Firstly, consumer awareness is skyrocketing. Google Trends shows that interest in “lab-grown diamonds” globally has quintupled in just four years. It’s clear that the consumers are curious, informed, and actively exploring Lab-Grown Diamonds. At the same time, brands are racing to tap into this demand. Brands are responding with omnichannel strategies, combining offline presence with strong digital awareness creation using influencers and celebrity endorsements.
Adding to this trust is the growing role of certification bodies. As the market expands, these institutions like IGI are stepping in to authenticate lab-grown stones, helping brands and consumers separate genuine from generic and build lasting credibility.
The US Curve: Rise, Correction & Opportunity
The US is the largest consumer of LGD jewellery, contributing to 65–70% of the overall market. The US LGD market observed a hyper-growth phase from FY 2019-2022. During this period, India’s exports to the US grew nearly 14-fold, accompanied by the rise of new-age D2C brands, many of which were backed by VC’s. However, due to the continuous price decline and inventory piling, the US market has since started observing a phase of consolidation. Few large players hit by shrinking margins and falling prices have been snapped up by bigger jewellery brands, while others are pivoting toward industrial applications like semiconductors.
Investors, brands, and disruptors are betting big in India’s LGD market
While India is the world’s diamond polishing hub, its domestic retail market for Lab-Grown Diamonds is still in its early innings. India’s lab-grown diamond market stood ~$ 300 Mn in 2024 and is expected to have a 2-4x growth by 2030
On the demand side, younger consumers are embracing lab-grown diamonds for daily wear, gifting, and special occasions, fueling adoption and demand. India is transitioning from a cutting-and-polishing hub to a full-stack ecosystem with production, branding, and retail. Government initiatives such as R&D funding and seed duty exemptions also play a critical role in supporting supply-side scale-up. The market is also witnessing the entry of dedicated lab-grown diamond brands and expanded participation from legacy jewellery players, which is enhancing consumer trust and improving conversion. Over $20+ million has already flowed into 3 homegrown, pure-play LGD brands, predominantly to fuel offline retail expansion and build vertically integrated operations. These brands aren’t just selling jewellery, they’re manufacturing it, tying up with growers, and maximising margins as the market gets competitive, impacting the entire value chain.
Youth-Led, Digitally-Discovered, Trust-Driven: The New Diamond Market Playbook
Earlier this month, we surveyed consumers across age groups to understand their buying behaviour and preferences around lab-grown and natural diamonds. With LGDs becoming more visible in the market, the goal was to uncover who is buying them, how they are being purchased, and what’s holding back others from considering them.
- Who is buying?
Younger consumers (18-35 years) often value-conscious, are warming up to lab-grown diamonds, with many making them their first purchase in the fine jewellery segment. However, consumers aged over 35 remain firmly loyal to natural diamonds, with only 39% of respondents in this group reported ever owning LGD, compared to nearly ~50% among younger consumers, highlighting a clear generational shift already underway.
- Where are they buying?
~ 48% of respondents who had purchased lab-grown diamonds did so through online branded platforms, indicating that LGD is perceived as a more formalised category compared to the broader fine jewellery segment, which is highly unorganised. Unlike traditional jewellery buyers, LGD consumers are actively bypassing local, unorganised players in favour of trusted, assurance-backed channels. Awareness is also being driven online, with social media emerging as the leading discovery platform, followed by word-of-mouth through friends and family.
- We also asked non-users why they haven’t bought LGDs yet.
Among non-users, lack of awareness was the top reason, followed by negative perceptions from family and friends. Trust in quality and concerns around resale value were mentioned by a smaller share.
Redseer Recommendation for Brands:
To unlock the full potential of India’s lab-grown diamond (LGD) market, brands must evolve beyond just product availability—they need to lead the conversation. This means investing deeply in consumer education to demystify LGDs, proactively shaping narratives of trust, leveraging influencers and celebrity endorsements, and building an omnichannel presence that mirrors the digital-first habits of younger consumers.
Education must go beyond awareness, addressing emotional barriers, family perceptions, and resale myths. Trust must be built through certification, storytelling, and transparency, helping consumers feel confident in their choices. And, distribution should reflect how today’s consumers shop: fluidly across online platforms and offline touchpoints with high transparency and trust.
Another move brands should make is to invest in the future by creating awareness in potential tier-2 and tier-3 cities that will potentially drive future growth.
Brands that act now and adopt a digital-first omnichannel approach will not just grow category adoption—they’ll define it.
Redseer Recommendation for Investors:
The lab-grown diamond industry offers immense potential for startups, investors, and corporates. Startups can innovate in manufacturing and direct-to-consumer retail, while investors capitalise on high-margin, scalable ventures. Major jewellery brands are partnering with LGD manufacturers to secure supply chains and expand sustainable offerings. With India’s control over the diamond value chain from growing to polishing to manufacturing, India’s LGD sector is poised to grow.
At Redseer, “We Solve for the New Growth Equation”, enabling stakeholders and investors to unlock strategic clarity in fast-moving landscapes, through data-driven insights, strategic advisory, and market intelligence—empowering them to identify growth opportunities and optimise go-to-market strategies in the rapidly growing LGD sector and the broader jewellery industry.
