Lab-grown diamond market expected to double in volume by 2030

Sales of lab-grown diamonds rose to more than $12 billion in 2023 from $1 billion just seven years ago. To meet the growing demand for these synthetic diamonds, the market volume is expected to double from 9 million carats in 2022 to over 19 million carats in 2030.

With a 25% market share in production, India is the biggest contributor to this industry. The volume in India grew by 5% on a yearly basis from April to July 2023.

To gain insights into the future trajectory of lab-grown diamonds, CNBC-TV18 engaged spoke to key industry figures: Pooja Sheth Madhavan, founder and Managing Director of Limelight Diamonds; Sanket Patel, Director at Greenlab Diamonds; and Parag Agrawal, Chief Executive Officer of Fiona Diamonds.

Sanket Patel shared his perspective, emphasising the evolution of market dynamics. "We all know that when there is a demand for a particular product in its early stages, the prices are initially high. However, with the increasing demand and the entry of more growers and retailers into the trade, prices have stabilised. We anticipate a positive trajectory for the lab-grown diamond industry, given the rising demand and acceptance of this product in India."

He elaborated on the stabilisation of costs, noting, "Lab-grown diamonds have reached a stable price point and are not becoming cheaper. On the contrary, they are likely to become more expensive. The labour-intensive processes involved in cutting and polishing these diamonds mirror those of mined diamonds. As the market sees an influx of carats, a shortage of skilled labour may emerge, thereby driving prices upward."