On October 18, The Times of India reported that the demand for lab-grown diamonds is expected to rise sharply during the holiday season in the fourth quarter of 2024. This increase in demand is seen in both India and its primary export market—the United States, where 75% of India's lab-grown diamonds are sold, mostly through consignment.
Despite the positive market outlook, two trends present both risks and opportunities:
- Decline in Large Stone Prices: The wholesale price for larger stones is expected to continue falling. Currently, the average wholesale price for diamonds smaller than three carats is around 15,000 Indian rupees (approximately 1,250 RMB) per carat, which may put pressure on both lab-grown and natural diamond markets.
- Changing Consumer Perceptions: There is an ongoing transformation in how consumers perceive diamonds. Some believe the expansion of lab-grown diamonds is reshaping the idea of a "diamond dream"—the belief in diamonds as something worth pursuing. This shift is part of a broader evolution in consumer values, from viewing diamonds as investments to seeing them as symbols of personal fulfillment and milestones.
India’s market, like many others, is witnessing the coexistence of different perspectives on diamonds—natural and lab-grown. This reflects a broader trend where different "consensus circles" are forming among consumers. As technology advances and societal values evolve, the jewelry industry must navigate these shifts, recognizing that different consumer groups may prioritize different values.