Game of Stones: The Stellar Appeal of Lab-Grown Diamonds (Fireside Ventures)

Summary

• The jewellery market is $70 billion, growing at a CAGR of 6%.p.2
• Diamond jewellery is the fastest growing segment, growing at a CAGR of 12% and accounting for $23-25 billion currently.p.3
• Non-bridal or everyday wear diamond jewellery is the hottest category, valued at $14-16 billion.p.3
• Lab-grown diamonds typically cost 30-40% less than a natural diamond of identical carat weight and grades.p.5
• The global market for lab-grown diamonds is $5 billion, growing at a CAGR of 15-20%.p.6
• The target buyers of lab diamonds are 25-35 year olds.p.7

Key insights

1. Key drivers of diamond jewellery include higher incomes, aspiration, branded organised players, urbanisation and more women in the workplace.p.3
2. The typical diamond buyer is a female working professional in a Tier 1 city who aspires to diamonds on a limited budget.p.4
3. Trust is a critical part of the purchase decision, and the target buyer shows low negative bias towards lab diamonds.p.4
4. Lab-grown diamonds have the same physical, chemical and optical properties as natural diamonds and carry the same certification.p.5
5. Lab-grown diamonds are manufactured through CVD or HPHT technologies and are significantly better for the environment than natural diamonds.p.5
6. Lab diamond buyers are expected to spend under INR 1L.p.8
7. Lab-grown diamonds are viewed as a luxury and indulgence.p.10