Lab-grown diamond (LGD) prices have dropped sharply by 25-30% from their peaks due to oversupply. However, Suvankar Sen, Managing Director & CEO of Senco Gold, and Anmol Bhansali, Managing Director of Goldiam International, believe the prices have likely bottomed out and are expected to stabilise at current levels.

LGD's have become increasingly popular for their affordability and versatility. For instance, a one-carat natural solitaire costs nearly ?7 lakh, whereas the same LGD solitaire is priced at ?65,000.

LGDs are also available in larger sizes, certified for quality, and can be customised to suit individual preferences.

The global lab-grown diamond market has more than doubled to nearly $25.9 billion in 2024 from roughly $11 billion in 2011. The Indian LGD market is currently small at around $2.7 billion.

Bhansali noted that the oversupply of LGDs stems from the relatively low cost of setting up a lab-grown diamond production units. For instance, establishing a chemical vapour deposition (CVD) plant in India costs roughly ?1.2 crore per reactor, including ancillary systems like piping and gas.

The Indian government is actively supporting the diamond industry by abolishing the 5% tax on diamond seeds, promoting exports, and improving market accessibility.

This push has encouraged collaborations between jewellery companies and specialised LGD manufacturers to ensure quality and capitalise on growing demand while focusing on branding and design.

Sen believes it is a more practical approach for jewellery companies to focus on sourcing LGDs, branding them, and incorporating unique designs into their jewellery.

Courtesy: CNBC TV 18