Diamonds, they say, are a girl’s best friend. And what’s more, they’re forever! But as per news reports, their prices are falling, and industry analysts are sounding the alarm. The diamond industry is in trouble,” Ankur Daga, founder and CEO of e-commerce company Angara, told a news channel in an interview. Now, these much-valued stones face stiff competition from lab-grown and other substitutes. The traditional diamond ring remains important to businesswoman and award-winning actor Dr Vidhya Borgia. She says, “In my journey of life, diamonds are key to an occasion. Many deem diamonds as auspicious as gold nowadays. Plus, it’s a symbol of wealth and status.”
Younger generation thinks differently
Radhika and her college sweetheart are saving up for their wedding. The young IT professional says, “We had originally looked at normal diamonds, but the price was not affordable, so we started looking into the moissanite and lab diamonds. They don’t look any different to a mined diamond which is also ethically questionable,” she says.
(Moissanite mimics diamond sparkle, while lab-grown diamonds are identical to mined ones. Lab-grown gems offer eco-friendly alternatives but demand energy-intensive production.)
Fashionista Sangeetha Peter notes, “Diamond giant De Beers convinced the world that mined diamonds were a symbol of timelessness and permanence. Now, customers seek choice and value. It’s pretty much about more bang for your buck.” Professionals prefer affordable options: real jewellery for milestones, lab-grown for social or work. This shift reduces demand for mined diamonds.
The demand is growing
Jewellery startups like Adaida Diamonds by Darshana Balagopal contribute to lab-grown diamond sales rising from 2% in 2018 to 10% last year (data from diamond analyst Paul Ziminsky). Darshana shares, “We had humble beginnings, hoping to craft 50 rings in our first year but the demand was so big that in our first few months itself we had a massive surge in our numbers.” She adds, “It’s a digital age, so customers are coming to us with a strong understanding of what they want. Many of them have ethical concerns about mined diamonds, while for others it’s about budget and achieving high impact.”
Lab-grown diamond market to hit USD 37.32 billion by 2028. NAC focuses on quality and affordability.
Arjun Varadaraj Nathella of NAC states, “We haven’t made a big noise about lab-grown diamonds until now because we have been growing our capabilities and understanding. My family has enjoyed credibility for decades; with diamonds of any sort you need to be careful. The introduction of a new source needs to be managed appropriately. So, our focus is on maintaining utmost standards of quality and design.” Gen Z’s declining marriage interest and luxury slowdown challenge diamond retailers; cheaper lab-grown diamonds worsen this.
The nay-sayer
“I originally ordered a moissanite ring, but I changed my mind the next day,” says Shradha Lulla about the 8-carat ring she had chosen from an overseas-based lab-grown diamond dealer. “I feel it’s always better to buy an original diamond. The value only depreciates with lab-grown diamonds and usually jewellery is also an investment. It’s like buying costume jewellery, why would one choose that option when you can buy mined diamonds which will appreciate in value.”
Diamond giant De Beers convinced the world that mined diamonds were a symbol of timelessness and permanence, but now there’s a growing number of customers looking for choice. They’re interested in sourcing and scale. It’s pretty much about more bang for your buck.” — Sangeetha Peter, fashionista and jewellery influencer
Read More: Is the diamond losing its sparkle?