Lab-Grown Diamonds Make Up 50% of India's Exports

A Quick Change in the Market

·        In FY19, lab-grown diamonds made up only about 10% of India's diamond exports.  Their share has grown to 50% by FY24.

·        On the other hand, natural diamond exports have dropped sharply, from about 303 lakh carats in FY19 to 189 lakh carats in FY24. This has also caused a big drop in export revenue.

Cheap but Profitable

Lab-grown diamonds are 60% to 85% less expensive than real ones.  Exports have grown a lot even though they cost less:

·        FY19: about $224 million • FY24: almost $1.4 billion

·        That's a huge 525% increase in just five years.

·        At the same time, exports of natural diamonds fell from $23.8 billion in FY19 to $16 billion in FY24.

Changing Tastes of Consumers

·        Buyers are clearly splitting up in global markets, especially the US:

·        Young and middle-class people like lab-grown diamonds for fashion and affordable luxury.

·        People with a lot of money still choose natural diamonds because they see them as a good long-term investment.

Challenges Ahead

·        Decreasing overall value: Even though lab-grown exports are going up, the lower prices have made India's diamond exports worth less overall.

·        Transparency and certification: It's very important to be able to tell the difference between natural and lab-grown diamonds.  A lot of buyers still want clear proof.

·        Response from the industry: To make sure their products are real and keep customers' trust, companies like De Beers are making quick-testing tools like DiamondProof.

This rise in lab-grown diamonds is changing not only India's export numbers but also how people think about luxury and value.

( Insights Source: Deccan Chronicle )