Lab-grown diamonds set for a 20–25% festive sales surge as India embraces affordable luxury

India’s relationship with diamonds is evolving. For decades, owning a natural diamond has been unattainable for many, with jewellers estimating that only a small percentage of Indian households possess diamond jewellery. However, the emergence of lab-grown diamonds (LGDs) is beginning to challenge that exclusivity.

Affordable, visually identical to mined stones, and increasingly accepted by younger buyers, LGDs are expanding the category to a much wider audience.

As the country approaches the festive season, a time when jewellery purchases traditionally surge, brands such as GIVA, Jewelbox, True Diamond, and Lucira say that the demand for lab-grown diamonds (LGDs) has never been stronger. Consumers are increasingly embracing LGDs, actively seeking them out for everyday wear as well as bridal jewellery.

According to Hansa Research, the market for lab-grown diamonds (LGDs) in India has experienced a compound annual growth rate (CAGR) of 15–18% over the past three years.

Piyali Chatterjee Konar, executive vice president at the market research and customer insights company, notes, “From being niche, LGDs now account for nearly 8–10% of urban diamond jewellery sales,” adding that the market is expected to grow 4–5x in the next five years, potentially reaching 15–20% of India’s diamond jewellery sales by 2030. 

Hansa Research further observes that growing consumer curiosity is evolving into actionable intent, providing brands with an opportunity to mainstream lab-grown diamonds in a manner that the industry has not previously experienced.

The affordability advantage

The price gap between natural and lab-grown diamonds remains one of the biggest growth drivers. A one-carat natural diamond can cost up to Rs 4 lakh, while the same size lab-grown stone is available for Rs 35,000–Rs 50,000, depending on the cut, colour, clarity and certification, as Vidita Kochar Jain, co-founder of Jewelbox, reveals.

While the price gap varies on the basis of brands, Resha Jain, chief brand officer at GIVA, highlights this shift: “Lab-grown diamonds offer up to 40–50% savings compared to natural diamonds of similar size and quality."

This decrease in price is driving significant adoption, as customers are able to buy larger, more striking designs within the same budget, she adds.

“Overall, lab-grown diamonds are 60–90% cheaper than natural ones. Both are physically, chemically, and optically identical. The only distinction is that one is mined from beneath the earth, while the other is created in a reactor under controlled conditions,” Kochar elaborates further.

Both natural and lab-grown diamonds are graded by international labs such as IGI and GIA, ensuring authenticity and quality.

Who is buying LGDs?

Across brands, the consensus is clear: millennials and Gen Z are leading adoption. They see jewellery less as an investment and more as a form of self-expression.

“They don’t believe in locking money into asset classes like diamonds. Instead, they want jewellery for different looks, days at the office, and occasions,” says Kochar.

GIVA's Jain concurs, stating that they target millennials and Gen Z, particularly first-time diamond buyers who prioritise value, ethics, and sustainability. "Interestingly, we’re also seeing young professionals choosing LGDs for self-purchase, not just gifting.”

For Lucira, co-founder Rupesh Jain observes a notable generational shift.

“This generation is redefining norms by opting for lab-grown diamonds for engagements, self-gifting, and festive occasions. Their receptiveness to new concepts, combined with their digital discovery habits, is driving the rapid growth of this category across India.”

While younger consumers are driving momentum, traditional buyers are also warming up.

“Millennials and Gen Z are leading adoption by nearly 50%,” Konar notes, “but traditional buyers in metro cities are beginning to embrace LGDs as well.”

A new wave of gifting and festive jewellery

The festive season has emerged as a critical growth driver. According to Hansa Research, LGD demand this festive season is expected to grow 20–25% year-on-year, with gifting making up nearly 35% of sales in metros.

Lucira’s Jain points to Rakshabandhan as an early indicator: “We saw a 15–20% surge in LGD jewellery gifting this year.”

LGDs are increasingly popular for weddings too. “Families are embracing lab-grown jewellery as a meaningful, modern alternative that combines luxury with responsibility,” says Jain.

Key factors influencing purchase decisions, according to the brands:

Popular categories vary across brands, but rings and earrings dominate. At Lucira, products in the Rs 20,000–Rs 50,000 range perform strongly, while solitaire engagement rings and tennis bracelets are also gaining traction.

Jewelbox reports its sweet spot lies between Rs 50,000 and Rs 1 lakh, spanning solitaires and everyday wear like pendants and rings.

Brand strategies: innovation, campaigns, and community

Brands are innovating aggressively to stand out. True Diamonds has launched a Portuguese-cut diamond with three times more facets than a regular round cut.

“It creates much more sparkle, and customers love it,” says the co-founder and director, Darayus Mehta. The brand is also experimenting with titanium jewellery, champagne gold finishes, and black diamond collections.

GIVA, meanwhile, is pushing design-led storytelling with its Heer collection, crafted in 14K and 18K gold.

“Our vision with Heer is to democratise diamond ownership, making it possible for every Indian to celebrate themselves with brilliance, without compromise,” says Jain.

Heer has already contributed nearly 20% of GIVA’s revenues in FY25.

Jewelbox is focusing on localised engagement through BTL activities such as tea parties, nail art sessions, and workshops. “These help build community and drive footfall,” Kochar explains.

Digital platforms are equally crucial. True Diamonds has built its following on Instagram, preferring community storytelling and character-driven content over traditional influencer endorsements. The founder himself is featured in the ads.

GIVA balances influencer engagement with ATL and BTL campaigns, while Jewelbox has lined up Diwali collaborations with influencers such as Nikki Mehra.

The global connection

India is not just a consumer but also a manufacturing hub for lab-grown diamonds. The country’s production capabilities are helping accelerate availability and affordability.

Lucira’s Jain points out that the Indian LGD market, valued at $2.61 billion in 2023, is projected to reach $8.31 billion by 2032, at a CAGR of 13.7%. “The luxury category alone could nearly triple from $331 million in FY2024 to $841 million by FY2032,” he says.

Globally, LGDs already make up over 50% of the US diamond jewellery market, according to GIVA's Jain.

India, she adds, "is now beginning to see a similar adoption curve, especially among millennial and Gen Z consumers who value design, affordability, and sustainability”.

Investment vs fashion

A key debate in the category remains resale value. While natural diamonds are still considered legacy assets, brands are positioning LGDs as a fashion and lifestyle choice rather than a financial investment.

“We offer 80% buyback and 100% exchange on our diamonds,” says Jewelbox’s Kochar. “But we see LGD jewellery more as a fashion category than an investment product.”

For GIVA, too, consumer priorities are shifting. “We’re seeing customers focus less on resale value and more on the lifestyle and experience of wearing diamonds,” Jain explains.

Road ahead

The outlook for LGDs in India is bullish. The current market, estimated at $300–350 million, is expected to grow 15% annually over the next decade, according to GIVA.

“Lab-grown diamonds are emerging as a strong parallel category to natural diamonds,” says Jain. “Both will co-exist: natural diamonds will retain their rarity value, while lab-grown will expand accessibility and everyday relevance.”

As Lucira’s Jain sums it up succinctly: “Lab-grown diamonds are set to move from niche to mainstream, both as an affordable luxury and as a responsible choice.”