← External Forces: Industry Specific (all topics)
Lab-grown diamond disruption
What it is
Diamonds grown in reactors rather than mined, chemically identical to natural stones and sold at a fraction of the price. India is the largest producer of lab-grown diamonds and synthetic stones globally
Prices have fallen steeply as capacity expanded
Impact on industries
- Price deflation is severe and continuing, so the category grows in volume while shrinking in value - a poor combination for producers
- It cannibalises natural diamond demand at the entry and mid price points, where the visual difference to a consumer is nil
- India's leading global position gives domestic producers first-mover scale, supported by research grants for indigenous manufacturing
- For jewellery retailers it is a margin opportunity - lower stone cost at similar retail price points widens the spread
- Excluded from the Feb 2026 US zero-duty framework, so the segment retains an 18% tariff into its largest growth market