Editor’s Note
India’s diamond market is evolving, with lab-grown stones gaining a foothold in specific segments like gifting, while natural diamonds retain overall consumer preference, according to a new Deloitte industry report.
India’s diamond market is experiencing a nuanced transformation as lab-grown diamonds establish their presence alongside traditional natural stones, according to Deloitte’s latest jewellery industry report “Go for Gold: A Winning Playbook for the Gems and Jewellery Industry.” While natural diamonds continue to dominate consumer preference, lab-grown alternatives are carving out specific market segments, particularly in gifting and lifestyle jewellery.
The Deloitte survey presents a clear picture of current consumer sentiment in the Indian diamond market:
Diamond Type | Consumer Preference | Market Position
Natural Diamonds | 44% | Overall preference leader
Lab-Grown Diamonds | 8% | Niche but growing awareness
LGD Gifting Preference | 44% | Leading gifting category
This data highlights a crucial distinction: while lab-grown diamonds lag significantly in overall preference, they have achieved parity with natural diamonds in the gifting segment. The 44% preference for lab-grown diamond-studded pieces in gifting surpasses traditional options like gold coins and conventional gold jewellery, driven by factors including affordability, ethical positioning, and design flexibility.
Titan Company has entered the lab-grown diamond segment through its newly launched beYon brand, positioning the move as market expansion rather than competition with natural diamonds. In a recent analyst call, the company’s management revealed that the lab-grown diamond market represents under 2% of India’s overall diamond-studded jewellery segment, emphasizing the nascent nature of this category.
Managing Director Ajay Chowla outlined the company’s approach. This strategy frames lab-grown diamonds as a bridge product, designed to bring aspirational consumers into the diamond category before they potentially upgrade to natural stones.
Contrasting with the lab-grown diamond expansion, De Beers is strengthening its natural diamond presence in India. CEO Al Cook has announced plans for the company’s largest global store in Mumbai while expanding the Forevermark footprint across the country. This investment signals confidence in India’s appetite for natural diamonds despite growing global visibility of lab-grown alternatives.
De Beers’ strategy focuses on evolving purchase patterns, with Cook noting that diamonds are increasingly bought for celebrations beyond traditional weddings. The company has identified Gen Z as the fastest-growing buyer segment, representing a shift in both demographics and purchase occasions.
The Deloitte report’s findings suggest that lab-grown diamonds are not replacing the traditional concept of ‘forever’ associated with natural diamonds, but rather redefining purchase frequency and accessibility. The data indicates distinct market positioning:
Natural Diamonds:
– Maintain dominance in wedding jewellery and heirlooms
– Continue to represent investment-grade assets
– Anchor trust, tradition, and long-term value
Lab-Grown Diamonds:
– Lead in gifting and everyday jewellery segments
– Enable accessible luxury and self-expression
– Support repeat purchases and lifestyle-led consumption
This segmentation allows both categories to coexist, with lab-grown diamonds addressing different consumer needs rather than directly competing with natural stones for the same market share. The current market dynamics suggest that while lab-grown diamonds have established their presence in specific segments, natural diamonds retain their position in high-value, ceremonial, and investment purchases.
