According to the Gems & Jewellery Export Promotion Council, the Indian diamond industry hasn’t fully recovered in terms of demand and export of polished mined diamonds. Moreover, the market saw a significant decline in export this year, due to the decreased demand and geo-political crises. The sanctions against diamonds that are being mined in Russia have done some significant damage to the cutting and polishing factories in the country. However, lab-grown diamonds are the product that can easily help the diamond companies through these tough times, as this is the only category that doesn’t experience any meaningful decline.
Different domestic markets, including India, saw an increase in man-made diamonds demand up to 25% this year, and this figure is further expected to increase in 2024. This maintains and provides new jobs for diamond industry workers and may be one of the main supporting factors of the Indian economy. “The sales volume of the LGDs for the first half of this financial year witnessed a growth of around 200% as compared to the last year… We started with 40 employees and now we have more than 4000,” - said the director of one of the largest indian LGD producers.
It’s not only producers and huge Indian companies that win due to the increased demand. Retailers, especially in the United States, are able to experience the successful season with the help of lab diamonds, even during the upcoming economic downturn. Even Martin Rapaport, who’s famously opposed to the lab-grown diamond industry, is not denying it. According to Rapaport Group, many jewelers this season are actively pushing lab-created gemstones because they can make huge margins, much bigger than what mined diamonds can bring.
While helping veteran jewelers, man-made diamonds are also the key factor of so many more businesses opening or shifting their focus across the globe. News about the launch of the new lab-grown diamond brand or collection seems to be appearing every other day now. The latest one is Roséate, the company started by former Tiffany CMO Pamela Cloud, that is going all in on lab-grown gems. The brand that used to focus on pearls, has now debuted their collection of lab diamonds jewelry. Manufactured stones are creating new opportunities for growth in every corner of the jewelry market. Even Walmart is working on a large expansion of lab diamond offerings after sales increased an incredible 600% compared to the last year. And while local jewelers may face some competition because of this, it can still be helpful to spike people's interest in the product and bring them to the brick-and-mortar stores.
By supporting the industry and increasing the retailers’ profits, lab-grown diamonds have proven themselves as the product that doesn’t disrupt the jewelry market, like so many professionals feared a few years ago. On the contrary, it’s the product that helps build the whole market up. And especially now, during economic difficulties, our industry needs to put trust in such a product. Why oppose the positive changes, when you can join and grow your business along with so many more successful jewelers?