Editor’s Note
The rise of lab-grown diamonds is not just a consumer trend but a significant market transformation. As this article details, certification bodies like IGI India are experiencing substantial growth, highlighting the sector’s rapid formalisation and the evolving standards within the gem industry.
India’s growing affinity for lab-grown diamonds is reshaping the certification industry, with the International Gemmological Institute (IGI) India witnessing a 27% growth in certification volumes over the past year. As lab-grown diamonds gain wider consumer acceptance, IGI India is positioning itself to capitalise on this transformation, targeting a compounded annual growth rate (CAGR) of 15-20% over the next five years.
The shift toward lab-grown diamonds is evident in IGI India’s revenue composition, where certifications for these stones now contribute nearly 60% of its business. In contrast, natural diamonds—once the dominant segment—have declined to just 20% of the company’s portfolio.
Despite concerns over lower margins on lab-grown diamonds compared to their natural counterparts, IGI India’s leadership remains confident that volume growth will more than offset any potential margin pressure.
He emphasised that the company’s ability to scale up infrastructure and operations efficiently will ensure continued profitability.
While the US has been the largest market for lab-grown diamonds, India is emerging as a significant player in this space. IGI India has observed a rising trend in lab-grown diamond jewellery certification, reflecting an expanding consumer base that values affordability and sustainability.
He pointed out that while initial certifications focused on smaller stones, the market is now witnessing increased certification of larger stones, typically in the 1.5-2 carat range, with some reaching as high as 10-20 carats.
As lab-grown diamond jewellery gains traction, IGI India is expanding its certification services beyond loose stones to include finished jewellery. This strategic move aligns with the broader industry trend where jewellers are integrating lab-grown diamonds into intricate designs, making them a mainstream option for consumers.
Looking ahead, IGI India anticipates further growth in the certification industry. According to Iyer, the global certification market, currently valued at $600 million, is projected to reach $1.1–$1.2 billion over the next five years. Much of this growth will be driven by lab-grown diamonds, with India playing a crucial role in this expansion.
Despite potential challenges, including competition from jewellers and manufacturers who may develop in-house certification processes, IGI India remains optimistic.