Thesis on Lab grown diamonds industry

Comparing Lab-Grown and Mined Diamonds: Quality

and Value
Today, most lab-grown diamonds are made through a process called chemical vapor
deposition (CVD). In this method, carbon gas heats a diamond seed in a chamber, causing
the carbon to stick to the seed and grow into a larger diamond.

Lab-grown diamonds are around 50-70% less expensive than natural diamonds of similar
quality. However, the cost difference between the two types of diamonds can vary
depending on the quality of the diamond.

No major differences in quality have been found between lab-grown and mined diamonds

THE ENVIRONMENTAL IMPACT OF MINED DIAMONDS

- Waste & water usage: A study comparing lab-grown and mined diamonds by
consultancy Frost & Sullivan found that mining diamonds produces 4,383 times more waste
than growing lab diamonds. The same study revealed that diamond mining uses 6.8 times as
much water.

Consumer Perception and Acceptance of Synthetic

Diamonds
Younger buyers find synthetic diamonds especially appealing, and not just because of lower
prices. These consumers have a greater awareness of the ethical and environmental
problems that diamond mining can pose.

Market Analysis: Trends and Growth in the Lab-Grown

Diamond Sector
Global Lab Grown Market- $10.8 Billion in 2022
Global Diamond market – $100.4 billion in 2022

Indian Lab Grown Market - $264.5 million in 2022.

CAGR- 6.7% (2023 to 2032)

China produces 56% of the global LGD

Size Segment Analysis

The size segment is divided into 2-4 carat, below 2 carat, and above 4 carat. The below 2-
carat segment dominated the market, with a market share of around 44% in 2022. Most
lab-grown diamonds sold for use in making jewellery and industrial instruments are less
than two carats in size.
The most common are melee diamonds, which weigh less than 0.15 carats.

Nature Segment Analysis

The nature segment is divided into colored and colorless. The colorless segment
dominated the market, with a market share of around 55% in 2022.

Application Segment Analysis

The application segment is divided into industrial and fashion. The fashion segment
dominated the market, with a market share of around 60% in 2022. The fashion industry
uses lab-grown diamonds extensively to create various one-of-a-kind jewellery items and
sets.

Some of the Key Market Players:

Diamond Foundry Inc.

Henan Huanghe Whirlwind CO., Ltd.
New Diamond Technology LLC
ABD Diamonds Pvt. Ltd.
Mittal Diamonds
Diam Concept
De Beers Group
Challenges and Opportunities for the Lab-Grown
Diamond Industry

 Overcoming the stigma associated with lab-grown diamonds. Many people still
harbor misconceptions and doubts about their quality and value compared to their
natural counterparts
 Establishing credibility and trust in the market.
 One of the misconceptions that need to be addressed is the idea that lab-grown
diamonds are somehow inferior or less valuable than their naturally occurring
counterparts. In reality, lab-grown diamonds possess the same physical and chemical
properties as natural diamonds.

 Since huge population is left to be educated about Lab grown diamond.There is huge
growth potential as after the educating it is seen that people try to prefer the Man
made.
 Lab grown diamonds caught the festive sparkle in Diwali 2023, with up to 60% year-
on-year growth during this period.

Regulatory Landscape for Lab-Created Diamonds

Forbes Article on why LGDs aren’t really what they are portrayed as Eco friendly

“According to the Federal Trade Commission, the answer appears to be that some, rather
than all, LGDs are over-hyped, and buyers should exercise discernment when evaluating or
shopping for lab-grown diamonds.”

Budget – 2023

During her Budget speech, Finance Minister Nirmala Sitharaman announced the
government’s move to focus on lab-grown diamonds. “Customs duty on the seeds used in
lab-grown diamond manufacturing will be reduced”, announced the finance minister. She
also announced a grant to IITs to facilitate the growth of LGDs in India.

Innovations Driving the Lab-Grown Diamond Industry

Lab-grown diamonds combine stunning looks and lower prices with ethical sourcing. This is
making an impact on the diamond industry. Even De Beers, the world's largest diamond
mining company, has started a lab-grown diamond line called Lightbox to meet this rising
demand.

There are two main lab-grown diamond production methods: the high pressure/high
temperature process (HPHT) and chemical vapor deposition (CVD). Both methods are
commonly used, but CVD is becoming more popular for producing gem-quality synthetic
diamonds for jewelry.

Links
https://www.moneycontrol.com/news/trends/lifestyle/indias-lab-grown-diamonds-finally-
their-time-to-shine-10876401.html

https://www.forbes.com/sites/kyleroderick/2019/08/24/lab-grown-diamonds--regulators-
warn-that-some-claims-fail-to-fulfill-their-hype/?sh=3783cd6c538e