Demand for lab-grown diamonds rising due to millennials, Gen Z
What's the story
As the festive season approaches in India, consumer interest in diamonds is on the rise. Tehmasp Printer, MD and CEO of the International Gemmological Institute (IGI), has shared his views on this trend and the growing popularity of lab-grown diamonds. He said these stones are becoming a preferred choice for millennials and Gen Z consumers who are new to luxury shopping.
Market shift
US market and India's growing stake
Lab-grown diamonds are now a popular choice in the US, with nearly half of bridal purchases involving these stones. They provide an "affordable luxury" option without compromising on quality or physical properties. While the US is still the largest market for these diamonds, India is not far behind. IGI currently polishes, cuts, and certifies around 80% of all lab-grown diamonds in India.
Accessibility
Addressing concerns and expanding reach
Printer emphasized that lab-grown jewelry is now reaching second- and third-tier cities, making the diamond ownership more accessible to a wider demographic. He also addressed concerns about negative perceptions surrounding lab-grown diamonds, stressing that IGI's independent and ISO-accredited certification ensures transparency and authenticity for consumers, choosing between natural and lab-grown options.
Tech innovation
Tech-driven approach to diamond certification
IGI is also leading the way in digital diamond certification using blockchain technology, offering provenance for diamonds throughout the supply chain. Printer said that the institute is integrating AI into its processes to improve efficiency, lower turnaround time, and provide cost-effective solutions for consumers. This tech-driven approach further enhances transparency and trust in lab-grown diamonds.
Market response
Consumer preferences and diamond demand during festivals
In terms of consumer preferences, Printer noted that India's market is still largely conservative, preferring 22K gold. However, lightweight gold jewelry and lab-grown diamonds are offering more affordable options without compromising on design or quality. The demand for diamonds during festivals remains strong as customers increasingly consider them as an alternative to high gold prices.