Diamonds are losing their sparkle...and fast! Why? Because lab grown diamonds or LGD are rapidly gaining popularity. Globally, the lab-grown diamonds market was valued at around $26 billion and is projected to spike to $98 billion by 2034.
In the United States for example, the demand for natural diamonds dropped sharply. Reports show that lab grown diamonds now account for nearly half of all solitaire jewellery sales there, which is a big shift in consumer preferences.
As a result, in India, diamond exporters are facing the heat. And the biggest blow has come from the United States, India’s largest buyer. Indian diamond exports to the U.S dropped 30% in 2024. And the pain isn’t over. In the April–June quarter of 2025, total diamond exports fell another 22%, sinking to $2.83 billion, according to the Gem & Jewellery Export Promotion Council.
Due to the rapidly increasing demand for LGDs, the prices of natural diamonds have crashed around 40% from their 2021-22 peak. This has prompted Indian manufacturers to cut production, reduce inventory, and shift towards smaller, lightweight jewellery formats. In fact, analysts predict that prices could fall another 10% to 20% this year. Yet, there's a silver lining. India’s domestic market is proving surprisingly resilient. In 2024, natural diamond jewellery sales grew 12%, crossing $9.3 billion, driven by first-time buyers and a growing middle class.
According to Amit Pratihari, MD of De Beers India, the country has now overtaken China to become the second-largest diamond jewellery market globally. "India has become the second largest market for natural diamond jewellery globally, overtaking China last year. We've seen double-digit growth for the last few years, and we actually see natural diamond demand in India, which is growing at 12 per cent annually, to double over the next five years by 2030.
"Currently, the diamond jewellery demand is just under USD 10 billion. So we're very confident in the future of India," De Beers Group CEO Al Cook told reporters.
De Beers is planning to open four Forevermark stores, two in Delhi and two in Mumbai, in the next few months. "And within five years, we aim to have more than 100 stores across India," said Cook, who is on a 3-day visit to the country.
De Beers India managing Director Amit Pratihari said the Forevermark will be an omni-channel approach.
"In the digital world, we are launching our e-commerce along with the store launch. And in India...physical availability is critical. So, for that, we have an expansion for physical stores. We're going with a cluster-based approach rather than just spray and pray. So, we want to make sure that whichever city or market we go to, we maximise that before we go to the next market. And we have a five-year plan," he stated.
But what exactly are lab grown diamonds?
These are diamonds created in a lab which are physically, chemically, and optically identical to natural diamonds, making them virtually indistinguishable without specialized equipment. They’re also 60% to 90% cheaper, and can be created in just a few days, compared to the billions of years it takes for natural diamonds to form under the Earth’s crust.
These synthetic stones are redefining the global diamond market, offering affordability, speed, and ethical appeal. However, natural diamonds still hold the edge when it comes to investment value and resale potential.
