According to CareEdge Advisory, Lab-grown Diamonds (LGDs) exports are poised to experience a resurgence in FY25, with anticipated growth of 7-9%, reaching a value of approximately US$1500-1530 million. Despite a recent decline in LGD exports, with a year-on-year decrease of around 16.5% in FY24, the sales volume of LGDs has been on the rise. However, falling prices have impacted overall exports. The depreciating rupee is expected to provide some support to the industry.
Looking ahead, the demand for LGD exports is forecasted to rebound in FY25, driven by factors such as price competitiveness, environmental sustainability, and increased competition from India against other major LGD-producing nations. Tanvi Shah, Director at CareEdge Analytics and Advisory, highlighted that the gems & jewelry industry is increasingly relying on the rapidly growing LGD market to offset the effects of sluggish demand for natural diamonds.
Colin Shah, Managing Director of Kama Jewelry, commented on the outlook for Lab Grown Diamond Exports for FY25 based on the CareEdge report. He noted that LGDs have gained popularity due to their cost-effectiveness and eco-friendly attributes. While FY24 saw a dampened sentiment in LGD exports due to various global economic factors, countries like Germany, the UK, Italy, and China experienced increased exports, possibly due to the G7 ban on Russian-origin diamonds.
