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In the past few years, lab-grown diamonds have moved from being dismissed as synthetic imitations to being positioned as symbols of innovation and conscious luxury. What was once perceived primarily as a lower-cost alternative to natural gems is now part of a broader shift in consumer perception, driven by technological advancements, environmental considerations, and endorsements from celebrities and influencers.
In 2019–2020, the lab-grown diamond market in India was substantially smaller than it is today. In 2020, India produced about 1.5 million carats of lab-grown diamonds, according to Future Market Insights. The same report noted that the Indian lab-grown diamond market is estimated to reach approximately $400 million in FY2025 and is projected to grow to $600 million by FY2028, at a compound annual growth rate (CAGR) of 14 per cent.
Traditional and legacy jewellery brands have increasingly entered the lab-grown diamond segment in response to evolving consumer preferences. Indian players such as Senco Gold & Diamonds, Trent of the Tata Group, and Indriya by the Aditya Birla Group have launched or tested lab-grown diamond lines. Globally, De Beers has explored the segment through its dedicated brand, Lightbox.
Pooja Sheth Madhavan, Founder & MD, Limelight Lab Grown Diamonds, says, “The growing popularity of lab-grown diamonds in India reflects a clear shift in consumer mindset. Today’s young consumers seek luxury with purpose: beauty, value, and responsibility in equal measure. Lab-grown diamonds deliver that same sparkle with greater transparency and sustainability, making them an aspirational yet conscious choice.”
Ricky Vasandani, CEO & Co-Founder, Solitario, attributes the growth of lab-grown diamonds to their identical physical and chemical properties at a more accessible price point; their appeal among younger consumers who value transparency and sustainability; and the expansion of supply chains and retail presence that has made them more widely available.
Namita Kothari, Founder, Akoirah by Augmont, says the core consumer base for lab-grown diamonds comprises millennials and Gen Z consumers who are fashion-forward and conscious of sustainability and value. They view jewellery as an expression of individuality rather than solely as an investment, making them a key driver of the category’s growth.
Lisa Mukhedkar, Founder & CEO, Aukera, views the core consumers as predominantly millennials who value both design and meaning in their jewellery. Their preference for modern, purposeful pieces that reflect individuality is contributing to category expansion.
Vidita Kochar, Co-Founder, Jewelbox, adds that while Gen Z often drives discovery through digital platforms, millennials and young professionals account for a significant share of purchases, particularly for self-expression, milestones, and gifting.
Change in positioning
Lab-grown diamonds are increasingly being positioned as luxury products in their own right, rather than as alternatives to natural diamonds. Buyers today include not only those for whom natural diamonds may be financially out of reach, but also consumers who prioritise sustainability, ethical sourcing, and transparency. Priced 30–40 per cent lower than comparable mined diamonds, lab-grown stones have broadened access to fine jewellery for price-conscious buyers.
Vidita Kochar notes that lab-grown diamonds are no longer perceived merely as substitutes. She says they represent a modern form of luxury that combines design, ethics and innovation. According to her, consumers are placing greater emphasis on intention, where aesthetics and responsibility intersect.
Rupesh Jain, Co-Founder, Lucira, says, “Right now, lab grown diamonds are in that interesting transition phase. People have moved past seeing them as ‘just a substitute,’ but they’re still discovering what luxury means in this new context. The mindset is shifting from price and practicality to emotion and identity. As more brands focus on design, storytelling, and craftsmanship, lab-grown diamonds will earn that independent luxury status. It’s not instant but the trajectory is clear.”
Madhavan emphasises that affordability is only one part of the equation. She says that consumers are increasingly informed and aspirational, and see lab-grown diamonds as offering the same brilliance and authenticity as natural stones, with added transparency and responsibility. According to her, sustainability is emerging as a significant purchase driver within this segment.
Vasandani offers a balanced view, noting that multiple consumer motivations coexist. Some buyers opt for lab-grown diamonds primarily due to cost considerations, while others are driven by sustainability and traceability. “For a brand like us, the opportunity lies in both the segments,” he says.
A segment of consumers chooses lab-grown diamonds instead of postponing or downsizing a mined diamond purchase. At the same time, an emerging cohort prioritises ethical sourcing and environmental considerations, incorporating conscious consumption into their lifestyle choices.
The rise of lab-grown diamonds reflects a structural shift within the jewellery industry. What began as a technological advancement has evolved into a broader repositioning of value, where innovation, transparency, and pricing intersect. Younger consumers, particularly millennials and Gen Z, are influencing this transition through their emphasis on individuality and sustainability.
India’s role in this transformation is significant, both as a major producer and as a fast-growing consumer market. With established jewellers and new-age brands participating in the segment, lab-grown diamonds are being integrated into mainstream retail rather than positioned solely as niche offerings.
As production technologies scale and retail narratives evolve, the category is likely to continue expanding. Whether driven by affordability, ethics, or design, lab-grown diamonds are increasingly part of how a new generation defines luxury—not solely as rarity, but as a reflection of values and identity.
