Lab-grown diamonds are expected to make up around 16 per cent of the global diamond market by 2029

Shifting consumer values are pushing lab-grown diamonds’ growth over their natural counterparts. India’s lab-grown diamond jewellery market is still small in size, estimated at $300 to 350 million as of 2024, it is projected to grow at around 16 per cent compounded annual growth rate (CAGR) over the next decade. Leveraging digital channels to build awareness and credibility, Indian brands are also aggressively entering the market. Backed by favourable government policies, rising domestic consumption and a movement in consumer tastes, the industry players estimate that the market for lab-grown diamond jewellery in India is expected to reach $1.2 billion by 2033.

Millennials and Generation Z especially are becoming aware of the environment, and ethical considerations are influencing consumer choices now. Thus, technological advancements have improved the quality and availability of LGDs and improved demand. Industry players remark that individuals are now seeking jewellery that not only complements their lifestyle but also aligns with their values.

From July, unless the proposed tariff regime changes, they will face tariffs of 37% if direct from Botswana or 26% if indirect via India. The impact will be to raise diamond prices, which will reduce demand, and/or reduce profit margins in the industry, researchers noted.

The impact on demand is particularly worrying, especially given the weakness of the diamond market in recent years, and the hopes for recovery in 2025. Economists have predicted that the rough market will further plummet and endure more strain if he continues to steer markets into trade wars.