The Indian Wedding Boom and the Rise of Lab-Grown Diamonds: Five Promising Entrants to Watch in 2025

India’s Wedding Industry: A Golden Opportunity for Lab-Grown Diamonds
India hosts 8-10 million weddings annually, making it the world’s largest wedding destination. The industry, valued at an astounding $130 billion, is a powerhouse driving consumption in sectors like jewellery, where bridal adornments alone account for 50-55% of revenues.

However, with inflation impacting wedding expenses, couples increasingly seek cost-effective yet luxurious alternatives. Enter lab-grown diamonds (LGDs), offering a sustainable, affordable, and aesthetically identical alternative to natural diamonds. These diamonds, 70-80% cheaper than their natural counterparts, are gaining traction globally, particularly among younger, budget-conscious consumers.

India, as the second-largest LGD producer, is uniquely positioned to leverage this trend. Government incentives, including zero import tax on LGD seeds and subsidies for manufacturing, further bolster the sector's growth prospects.

Meet the New Trailblazers in India’s Lab-Grown Diamond Market

1. Titan Company
   Titan Company, a stalwart in India’s lifestyle industry, has a diversified portfolio that includes jewellery brands like Tanishq, Mia, and CaratLane. Although not yet a direct LGD producer, Titan’s investment in the American LGD brand Clean Origin positions it strategically in this burgeoning market.

   
   Titan’s strategy revolves around learning the nuances of the US LGD market—the world's largest—before committing to large-scale production. This cautious yet informed approach aligns with its track record of innovation and consumer-centricity.

Financial Highlights:

• 5-year average ROE: 26.5%

• 5-year sales CAGR: 20.9%

• Net profit growth (3 years): 54% CAGR

Titan’s ability to adapt to disruptive trends makes it a key player to watch as it readies itself for the LGD revolution.

2. International Gemmological Institute (India) (IGI)
   IGI is a leader in diamond certification services, holding a dominant 65% share in the global LGD certification market. With its expertise, IGI bridges the gap between manufacturers and consumers, ensuring quality and transparency.

   
   Recent developments include a new 214,159 sq. ft. facility in Surat, aimed at supporting LGD operations. Backed by Blackstone, IGI’s financial performance reflects robust growth:

Financial Highlights:

• Revenue CAGR (2021-2023): 31%

• Profit CAGR (2021-2023): 37%

IGI’s pioneering efforts in LGD certification since 2005 underline its commitment to shaping this emerging market.

3. Sky Gold
   Mumbai-based Sky Gold, a leading B2B jewellery manufacturer, is expanding into the diamond-studded and LGD segments. Known for its lightweight gold jewellery, the company is leveraging its expertise to tap into the growing demand for lab-grown diamond jewellery.

   
   Sky Gold’s strategic moves include acquiring subsidiaries, raising capital, and expanding manufacturing capacity, positioning it for robust growth in the LGD sector.

Financial Highlights:

• 3-year sales CAGR: 29%

• 3-year profit CAGR: 100%

Sky Gold’s entry into LGDs reflects its adaptability and commitment to innovation, setting the stage for long-term growth.

4. Renaissance Global
   Renaissance Global, a seasoned player in branded jewellery, is strategically integrating LGDs into its portfolio. The company focuses on high-margin segments like licensed brands and direct-to-consumer (D2C) ventures.

   
   Its exclusive partnership with Disney and marketplace approach for LGDs showcases its focus on branding rather than manufacturing. This strategy mitigates risks while capitalizing on the growing popularity of LGDs.

Financial Highlights:

• Profit CAGR (3 years): 19%

• Target: Zero debt by FY26

With a multi-pronged LGD strategy, Renaissance Global is well-positioned to lead the branded jewellery revolution.

5. Mini Diamonds
   Mini Diamonds is carving its niche in the global LGD market with a focus on innovation and partnerships. Its collaboration with Parasmani Inc. in Canada highlights its ambition to expand internationally.

   
   Recent milestones, including the shipment of 2,000 LGD-studded jewellery pieces to North America, reinforce its growing credibility.

Financial Highlights:

• 3-year sales CAGR: 128%

• 3-year profit CAGR: 149%

Mini Diamonds’ commitment to ethical sourcing and affordability resonates with evolving consumer preferences, making it a brand to watch.

Challenges in the Lab-Grown Diamond Market
Despite its promise, the LGD industry faces challenges like price volatility and intense competition. Increased global manufacturing capacity has led to significant price declines, impacting profitability. Companies must navigate these hurdles while addressing consumer concerns about sustainability and authenticity.

A Diamond in the Rough
The Indian wedding boom has created fertile ground for the growth of lab-grown diamonds. With rising consumer awareness and government support, the LGD sector is poised for remarkable expansion.

While each of the five entrants discussed brings unique strengths to the table, the industry’s future hinges on innovation, branding, and strategic execution. Investors and consumers alike have much to look forward to as LGDs redefine the jewellery landscape.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.