The world doesn’t need an introduction to lab grown diamonds (LGDs) anymore. Their rising popularity is primarily credited to their affordability and environmental sustainability. Unlike mined diamonds, lab-grown diamonds can be produced with fewer environmental impacts and without the ethical concerns related to traditional diamond mining. Additionally, advancements in technology have made these diamonds virtually indistinguishable from natural ones, further driving their appeal.
With the younger generation making more practical decisions, they don’t want to compromise on their style, but they also realise that purchasing a LGD is better value for money for the same look and style. Brands like Fred, Swarovski, Pandora, VRAI and more have taken note and given their approval to lab grown diamonds. However, there are finer nuances behind the story.
Matter of ethics
When considering the ethical implications of diamonds, it is important to recognize the significant environmental and social impacts associated with their extraction or creation. The mining process for natural diamonds, often referred to as ‘rough’ diamonds, is known to be harmful to the environment. Additionally, the industry has been historically plagued by issues such as child labour, illegal trade, and the notorious ‘blood diamonds’ phenomenon, which involves the sale of diamonds to fund armed conflict.
LGDs, in contrast, have largely enjoyed a more favorable position. “…lab-grown diamonds offer a more sustainable and ethical alternative by eliminating these problematic factors [faced by natural diamonds]. While the production of lab-grown diamonds does require resources such as water and electricity, there are increasingly viable options to use renewable energy sources like solar power, further reducing their environmental footprint. Moreover, the amount of water and energy consumed in producing lab-grown diamonds is significantly less than that required for natural diamond extraction,” explains Disha Shah, Founder and Designer, DiAi Designs.
After the initial production phase, the processes for cutting and polishing both natural and lab-grown diamonds are identical, ensuring that the final product is of comparable quality. Therefore, from an ethical standpoint, at first glance, lab-grown diamonds seem to be a more sustainable and socially responsible choice compared to their natural counterparts.
However, there is increasing chatter questioning how ethical lab-grown diamonds are really. Suresh Jain, Founder & MD, Avira Diamonds, explains, “The diamond mining industry has been associated with serious human rights abuses, including poor working conditions and child labour, particularly in some developing countries. Lab-grown diamonds avoid these issues, as their production does not rely on exploitative labour practices. However, while lab-grown diamonds address many ethical concerns, they are not completely without issues. There are ongoing discussions about the broader implications of their production, including energy consumption and the long-term sustainability of their technology. Overall, lab-grown diamonds are a more ethical choice compared to traditional mined diamonds, but like any industry, they are subject to evolving practices and scrutiny.”
Answers, and data, is not that simple to come by or analyse. While natural diamonds have a lesser CO2 emission per carat rate (per a SPG Global report) as compared to lab-grown diamonds, they do have a significant negative impact on deforestation and habitat loss. Lab-grown diamonds, though they use seven times lesser water and lesser land, and they have lesser industrial waste, they do not provide as much employment and economic opportunities as natural, mined diamonds. This could lead to an unbalanced labour market if diamond mining is completely replaced by LGDs.
“The positive aspect of this mudslinging is the natural diamond mining business is improving its environmental game. The same as it did two decades ago by establishing the Kimberley Process and putting an end to blood diamonds.”
As per Statista, India’s production of cut and polished lab-grown diamonds in 2023 had the largest carbon footprint of any lab-grown diamond producing region in the world, amounting to 612 kgs of CO2 equivalent per carat produced, with China following at a value of 523 kgs of CO2 equivalent per carat. Natural diamonds, in contrast, have a much lesser Co2 emission rate.
Internationally recognised diamond expert Garry Holloway says, “Lab-grown diamonds are marketed as being better for the environment and reducing global warming. However, the amount of power consumed to grow a diamond is large. The vast majority are produced in China, India, and Eastern Europe where most electricity is generated by burning fossil fuels. Coal mining results in more deaths than any other type of mining, hundreds more than diamonds or any other gemstone. The positive aspect of this mudslinging is the natural diamond mining business is improving its environmental game. The same as it did two decades ago by establishing the Kimberley Process and putting an end to blood diamonds.”
Now trending
While the ethicality of both – natural diamonds and lab-grown diamonds – will always be under scrutiny, favoritism will be subject to personal opinion. And of course, budgets. Whether natural or lab-grown diamonds, jewellery trends aren’t as fast-paced as fashion trends. So one of the advantages of making jewellery with lab-grown diamonds is that it gives more flexibility to play around with bigger diamond sizes without making it exuberantly expensive.
Popular trends with bigger diamond sizes include the Toi Et Moi style, solitaire necklaces and daintier solitaire rings. “The lab-grown diamond industry is buzzing with exciting trends. Colored diamonds are making waves, offering consumers a spectrum of vibrant choices that stand out. There’s also a growing appetite for larger carat sizes, as lab-grown diamonds make it easier to own those impressive, eye-catching stones. Customization is another significant trend, with consumers increasingly seeking unique, bespoke designs that reflect their individuality. As lab-grown diamonds continue to break traditional barriers, they are becoming a symbol of modern luxury—affordable, ethical, and stunningly unique,” says Ricky Vasandani, CEO, Solitario.
Value Proposition
The surge in demand for lab-grown diamonds is driven by a blend of sustainability, innovation, and value. Consumers today are more environmentally conscious and are drawn to lab-grown diamonds because they offer a guilt-free alternative to mined diamonds without compromising on quality or beauty.
According to investment bank Morgan Stanley, lab-grown diamonds accounted for an estimated 14.3% of total diamond supply in 2023 — 16 million carats versus newly-mined supply of 112 million carats. According to Allied Market Research, the global lab grown diamonds market was valued at $24 billion in 2022, and is projected to reach $59.2 billion by 2032, growing at a CAGR of 9.6% from 2023 to 2032.
Beyond its current value, LGDs are turning out to be a safer, more economical bet for many, Jyothi Jain, CEO, Que by M Jewelry, says, “In mined diamond reselling markets, it is common to sell an estimated 70%-80% of a diamond’s value, and for lab-grown, it is more about 10% of what a mined diamond can be sold for. This lower initial cost means that even without a return policy, if the purchase does not turn out as expected, the financial loss is not significant. Even if lab-grown diamonds do not rise in the same regard over time, like how natural diamonds appreciate, they still seem to be a wise, budget-friendly, and eco-friendly option for many countries.”
Advanced technology has made these diamonds more accessible, allowing for larger, flawless stones at a fraction of the cost. In terms of buyback and returns, natural and lab-grown diamonds offer almost similar policies.
Looking ahead
With both natural diamonds and lab-grown diamonds fighting for relevancy, and of course sales, consumer choice varies. Are we going to save the world by choosing one over the other? There is no consensus on that.
