Lab-GrownSep 23, 2024
Kay Jewelers, Monique Lhuillier Add Colored Lab-Grown Diamonds to ‘Bliss’ Lab-GrownSep 25, 2024
Lab-Grown Diamonds: A Threat or an Opportunity?
Many lab-grown manufacturers in India are rethinking the earlier antagonism between lab-grown and natural diamonds.
“There is greater acceptance [of lab-grown diamonds] today, but manufacturers had to put in a lot of effort to make it happen,” said Smit Patel, director of finance for lab-grown diamond company Greenlab, whose factory in Surat, India, is pictured.
Mumbai, India—The lab-grown diamond industry in India continues to march forward, although the rate of expansion has slowed slightly when compared with earlier levels.
In the process, Surat, the undisputed global center for manufacturing natural diamonds, now straddles two worlds.
Resources that are no longer needed because of the global slowdown in natural diamond demand, including physical infrastructure and skilled employees, are being absorbed by the emerging lab-grown diamond industry.
Yet, even as the pipelines of these physically similar products develop almost in parallel, perspectives on the relation between, and the future of, each segment vary.
A ‘Zero-Sum Game’
At a session during the recently concluded India International Jewellery Show (IIJS) in Mumbai, Dilip Mehta, chairman emeritus of Rosy Blue who now leads lab-grown diamond company Lumex, provided an interesting insight.
“Rather than viewing this as a zero-sum game, where one must win and the other must lose, I believe we have an incredible opportunity to expand the market together,” he said.
“Both natural and lab-grown diamonds bring unique value to the table, and when leveraged correctly, can complement each other and help grow overall jewelry consumption.” – Dilip Mehta, Lumex
In a later interview with National Jeweler, Mehta termed the earlier approach of pitting the two products against each other as a strategic mistake that led to a race to the bottom, while stressing that it was better to look forward than spend time “crying over spilled milk.”
“I believe,” he elaborated, “that both natural and lab-grown diamonds bring unique value to the table, and when leveraged correctly, can complement each other and help grow overall jewelry consumption.”
Citing examples from different industries, Mehta said it was believed airplanes would sound the death knell for sea travel, or that the introduction of the smartwatch would eat into the jewelry business.
Yet today, sea travel has been reinvented in the form of luxury cruises, and there is still significant demand for bejeweled watches and timepieces.
The Rise of Detection Technology
India’s Gem and Jewellery Export Promotion Council (GJEPC) always believed the two categories constituted distinct product streams, said Praveen Shankar Pandya, chair of the Natural Diamond Monitoring Committee, an initiative of GJEPC and the Bharat Diamond Bourse.
The committee was set up more than a decade ago after some cases of mixing were detected by labs.
“This [mixing] had the potential to destroy consumer confidence in the product, and so monitoring the trade became necessary,” he explained.
Once simple and affordable detection devices became available, first at the business-to-business level and now even at retail, the focus has changed.
Ongoing efforts to advance detection techniques and carry out consumer education must go on so that, “both streams can co-exist and grow,” Pandya said.
A Spectrum of Options
Smit Patel, director of finance for Greenlab Diamonds and chair of the GJEPC’s lab-grown diamond committee, stressed that the lab-grown diamond business is still in its infancy when compared with its natural diamond counterpart.
“There is greater acceptance today, but lab-grown diamond manufacturers had to put in a lot of effort to make it happen.”
Patel believes the lab-grown diamond business should be viewed from the perspective of its end use.
“Currently, gem-quality lab-grown diamonds are predominantly an input into the jewelry industry and there are multiple possibilities. They can greatly expand the market for studded jewelry by providing affordable alternatives to consumers who aspire to buy diamonds but are restricted by high prices.”
Lab-grown diamonds can find space both in fashion jewelry, as well as for high-value designs, he said. As research and development advances and manufacturers develop greater expertise, more innovative cuts and fancy colors will be produced.
“The possibilities are immense, and vertically integrated manufacturers can tailor supply to suit market demands,” Patel said.
The Need for Distinct Narratives
Vinit Jogani, director at Diatech, which offers advanced, AI-based solutions to the diamond industry, feels both segments have limited their scope by failing to develop unique and compelling narratives around their products.
The lab-grown diamond industry also has failed to create a standalone marketing and distribution strategy.
He cited the example of the lab-grown diamond industry’s focus on engagement rings.
“If lab-grown diamonds were promoted as memorable-yet-affordable gifts for occasions that keep recurring … [and] collections were developed annually in sync with prevailing fashion trends, the market could expand phenomenally.”— Vinit Jogani, Diatech
This category is limited, he explained, as for many consumers, it is a once-in-a-lifetime purchase, outside of those who look to upgrade on milestone anniversaries or get remarried following a divorce or a death.
“Instead, if lab-grown diamonds were promoted as memorable-yet-affordable gifts for occasions that keep recurring, like Mother’s Day or birthdays, and innovative, theme-driven collections were developed annually in sync with prevailing fashion trends, the market can expand phenomenally,” Jogani said.
“Imagine how lab-grown diamonds, a volume-driven, lower-margin business, could benefit.”
The lab-grown diamond business will be more about affordability and innovation, Jogani believes. It can be developed to cater to impulse purchase at lower price points, and unique products with patented cuts and colors at higher ones.
The natural diamond business, meanwhile, can be about luxury and exclusivity.
The natural diamond business, meanwhile, can be about luxury and exclusivity.
“In some markets, the natural business also needs to position itself as a store of value by developing a clear and transparent framework. The current state of the Chinese market shows the implications of failing to do so,” he said, a reference to the number of Chinese consumers eschewing diamonds in favor of gold in reaction to the country’s current economic instability.
Integrated Operations at Scale
Ashish Lakhani of Kira Diam said vertical integration offers many advantages for lab-grown diamond manufacturers.
“We entered the segment later than others but that helped us understand the dynamics of the industry better,” he said. “We also have the advantage of operations being led by some very experienced employees with a deep understanding of the diamond business.
“That makes it easier to plan the entire cycle and produce as per market needs. Within the span of four to six weeks we can deliver large volumes of products that are in demand.”
Related stories will be right here …
He said having integrated operations at scale provides multiple benefits in a segment that is driven by volumes.
He added that, “Kira has become a new type of supplier of choice—we can deliver exactly what the market needs.”
Going forward, Lakhani said consumers will determine the pace and direction at which each stream grows, noting, “We do not need a pre-conceived vision of the future.”
Meeting Consumers’ Needs
The view from Surat seems in sync with Dilip Mehta’s assertion that, “Lab-created diamonds are a designer’s dream.
“They offer flexibility and creativity and allow designers to think outside the box. They can create exciting new products, including accessories.”
The view from Surat seems in sync with Dilip Mehta’s assertion that, “Lab-created diamonds are a designer’s dream.
“They offer flexibility and creativity and allow designers to think outside the box. They can create exciting new products, including accessories.”
Mehta foresees a future where both streams work hand in hand.
“This innovation should not be seen as a threat, but as an opportunity to enhance the industry and broaden its appeal. It is a moment of opportunity rather than division.
“The rise of lab-grown diamonds doesn’t mean the decline of natural diamonds; it means we have more tools in our toolkit to meet the evolving needs of consumers,” he concluded.
More on Lab-Grown
The Latest
Policies & IssuesOct 08, 2026
Third Wave of IEEPA Tariff Refunds Begins This round of tariff refunds is for importers that have sued over IEEPA tariffs in the Court of International Trade and won.
CollectionsOct 08, 2026
Brent Neale’s New Collection Goes ‘Back to Basics’It revisits the brand’s most requested silhouettes, from "Pillow"-set necklaces and bracelets to "Signature"-set rings and earrings.
SourcingOct 08, 2026
Ethical Gem Fair Heads Back to BrooklynThe trade-only event includes buying opportunities as well as educational sessions on artisanal mining, the new Paraíba source, and more.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
Events & AwardsOct 08, 2026
Pattons Fine Jewelry Sweeps Local Design ContestAra Chanakian, a jeweler at Pattons, took home top honors in every category at Jewelers of Louisiana’s annual jewelry design competition.
Weekly QuizOct 01, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsOct 08, 2026
Reba McEntire’s Jewelry, Watches Head to Julien’s AuctionsThe live charity benefit sale in Nashville will also feature gowns, boots, and other memorabilia from the country music legend.
Supplier BulletinOct 08, 2026
Overnight Mountings’ Bridal Builder Helps Jewelers Turn Custom Design into a Hands-On Selling ExperienceSponsored by Overnight Mountings
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
Policies & IssuesOct 07, 2026
The Plumb Club Amplifies Its Voice as Geopolitical Pressures MountThe supplier organization recently joined JA and JVC to have more input on political issues affecting the jewelry industry.
CollectionsOct 07, 2026
Blue Nile, Royal Asscher Collection Highlights Natural Diamond BeautyBlue Nile, a Signet Jewelers-owned brand, is now Royal Asscher’s exclusive licensed retailer in North America.
CollectionsOct 07, 2026
4 Standout Pieces in Audemars Piguet’s First High Jewelry Collection “Royal Oak” pays homage to the brand’s most popular watch model using 18-karat gold as well as diamonds, emeralds, and sapphires.
MajorsOct 07, 2026
Empire Safe & Vault Promotes Juan Morales to CEOAs part of the transition, Joseph Nicosia has stepped into the role of COO.
SourcingOct 07, 2026
AGTA Extends Deadline for 2026 Spectrum Awards EntriesParticipants now have until Oct. 14 to complete their submissions.
Policies & IssuesOct 06, 2026
6 Charged in Connection to String of New Jersey Smash-and-GrabsThe alleged thieves used crow bars and sledgehammers to smash into jewelry stores across the state.
ColumnistsOct 06, 2026
Sherry Smith: Is the Consumer Really Trading Up?Ahead of the holidays, Smith urges jewelers to take a hard look at who’s buying jewelry, what they’re purchasing, and who’s stopped buying.
SourcingOct 06, 2026
DDG Taps Influencers for ‘My Diamond Does Good’ CampaignIn the new consumer-facing campaign, four fashion and lifestyle creators share the stories behind their natural diamond pieces.
MajorsOct 06, 2026
Frederick Goldman Names COO, CMOFGI President John Orrico is also leaving the company after more than 13 years.
Events & AwardsOct 06, 2026
JIS Fall Returns to MiamiThe 2026 edition will feature presentations on alternative materials and design trends, as well as pop-up activations on the show floor.
SourcingOct 05, 2026
De Beers to Take Full Ownership of Gahcho KuéIt is the last fully operational diamond mine in Canada following the recent closures of Ekati and Diavik.
AuctionsOct 05, 2026
The Star Cats of the Sandy Lerner AuctionThese jewels stood out at Bonhams’ sale of the cat-loving tech entrepreneur’s collection of objects depicting the feline form.
CollectionsOct 05, 2026
Sorellina Writes Another Love Letter for ‘Postscript’ CollectionThe fine jewelry brand has expanded the collection that debuted at Couture with four new designs based on its most popular styles.
SourcingOct 05, 2026
Bruce Bridges Joins CIBJO BoardThe AGTA president was elected for a two-year term on the board of directors.
SourcingOct 02, 2026
De Beers, National Geographic Society Renew Okavango Eternal Partnership The partnership, a pledge to protect Africa’s Okavango River Basin, has been extended for an additional five years.
MajorsOct 02, 2026
Pandora Opens New $150M Manufacturing Facility in VietnamThe new facility, its first outside of Thailand, will boost its manufacturing capacity by 50 percent.
TrendsOct 02, 2026
Hearts On Fire Celebrates 30th Anniversary With Heart PendantThe special-edition “Dream” pendant, our Piece of the Week, was created to mark Hearts On Fire’s 30-year milestone with 30 diamonds.
CrimeOct 01, 2026
Police Looking for 4 Suspects in $600K Smash-and-Grab RobberyDubai Jewelers in Springfield, Virginia, was once again the target of an armed robbery.
SurveysOct 01, 2026
Rolex Ranks Among Most Recommended Brands in US, Survey Says YouGov’s 2026 U.S. Most Recommended Brands report’s out, and a fast-fashion giant is sitting at No. 1 while Rolex is just shy of the top 5.
