Lab Grown Diamonds Redefining Diamond Jewelry with Sustainable & Affordable Options

Lab grown diamonds are considered to offer up to or over 90 percent cost reduction compared to natural diamonds. However, the negative reputation of the industry stems from unethical practices like slavery, exploitation of workers, and funding of rebel groups and warlords, leading to a negative perception of the mineral.

When it comes to diamonds, women know best what they want

Recently, an X user sparked a debate by suggesting that giving a woman a lab grown diamond engagement or wedding ring was a crazy idea. However, the response from thousands of users, predominantly women, was unexpected. Many argued that lab grown diamonds are virtually identical to natural diamonds. This lively exchange highlighted the diverse opinions on the topic, ultimately emphasizing that when it comes to diamonds, women know best what they want.

The FTC on diamonds 

The Federal Trade Commission explains that diamonds consist of pure carbon crystallized in the isometric cubic system, along with additional elements like nitrogen and inclusions, which are tiny foreign objects. Most diamonds are not entirely composed of carbon. Due to their formation deep beneath the Earth’s surface over billions of years, natural Earth-mined diamonds are considered rare and valuable, leading to their high monetary worth. The technology used for lab grown diamonds (LGD) has been around since the 1950s but only became commercially available in the early 2010s. It typically takes 6 to 10 weeks to produce LGDs in a laboratory. 

The cost difference between mined diamonds and lab grown diamonds

Furthermore, the increase in awareness of unethical practices linked to mined diamonds has contributed to the growing popularity of this sustainable alternative. For comparison, a one-carat G-VS2 GIA Certified natural diamond is priced at $4,000, whereas the lab grown alternative costs $1,200. This cost difference, along with the equivalent value, provides room for additional investments and the potential for value appreciation, making the lab-grown option a favored choice.

India & global diamond exports

In 2022, India secured the top spot in global diamond exports, commanding a market share of 26.5 percent valued at USD 86.75 billion. On the contrary, the country held a 29 percent share in LGD and synthetic stones in 2019-20, with exports totaling USD 6.48 billion. The Directorate General of Commercial Intelligence and Statistics reported that the exports of cut and polished lab grown diamonds reached USD 1,387.33 million in April-December 2022. This surge in demand has created opportunities for startups and entrepreneurs to venture into this sector. 

There is an opportunity to offer diamond solitaires at a reduced cost, with a strong focus on environmental friendliness and quality. The lab grown diamond companies specialize in providing environmentally friendly alternatives to contentious diamond mining practices, offering diamond rings starting at a heavily reduced price of INR 8,500. Their approach aims to deliver identical products at a fraction of the cost, promoting environmental sustainability and quality without compromise, potentially reshaping the future of the industry.

Indian consumers’ growing preference for lab grown diamonds in engagement rings

It has been highlighted that there is a growing preference of Indian consumers for lab grown diamonds (LGD) in engagement rings, emphasizing the appeal of conflict-free and ethically sourced diamonds for couples. In the US, the use of LGD in engagement rings surged to 36 percent in 2023 from 17 percent in 2022. While accessibility currently outweighs sustainability as a factor in India, younger generations like Gen Alpha, Gen Z, and Millennials are increasingly conscious of ethical fashion and sustainability. It is also predicted that sustainability will soon become an even more mainstream consideration and a significant decision-making factor in the industry.

Lab grown diamonds startups disrupting the conventional diamond industry 

Lab grown diamonds’ startups are being established with the aim of disrupting the conventional diamond industry and advocating for a more sustainable and transparent approach to jewelry manufacturing. Technological advancements have enabled the creation of LGDs that resemble mined diamonds in quality and appearance, all while cutting down production expenses significantly.