India’s LGDs are cheaper but natural diamonds will still be in demand

Demand for lab-grown diamonds in India has grown steadily, but naturally mined diamonds won’t be losing their sparkle any time soon, industry experts say.

India currently has the world’s largest youth population. More and more millennial and Gen Z shoppers have been captivated by the so-called LGDs because of their price point, analysts told CNBC.

The price of a lab-grown diamond can be five times cheaper than a natural diamond, but they are both chemically identical.

According to Limelight Diamonds, one of India’s largest LGD jewelry brands, a natural diamond is priced at around $6,000 per carat while its LGD counterpart is just $1,200.

Both are also graded based on the 4Cs — clarity, color, cut and carat — the widely accepted standard characteristics to determine a diamond’s value and quality.

Sales of LGDs have skyrocketed as buyers in India who were previously unable to purchase diamonds due to their high cost now feel they can enter the market. 

“Previously, less than 5% of Indian women were able to afford natural diamonds,” said Pooja Sheth, founder and managing director of Limelight Lab Grown Diamonds.

“But consumers are feeling it’s more value for money to purchase a lab grown diamond and there is a huge amount of incremental demand from new purchases who have never bought a diamond before,” she commented.

India is currently the second-largest lab-grown diamond producer, behind China which accounts for at least half the world’s production.

Edahn Golan, the CEO of Edahn Golan Diamond Research and Data, said he’s optimistic the South Asian nation could soon be No. 1.

China’s LGD market is bigger in terms of production, but it is not polishing as many gems as India, Golan explained. “The technology that is used in India is far more sophisticated, and has much more room for improvement over time in the…