News Excerpt:

Man-made gems are reshaping the $89 billion global diamond jewellery market, especially in the west Indian city of Surat, where 90% of the world’s diamonds are cut and polished.

About Lab-grown diamonds:

• They sparkle the same, but there are key differences: 
• mined natural gems are more than a billion years old,
• laboratory-made rocks are new and cost less than half the price.
• Reactors in labs are pumped full of carbon-containing gases such as methane, and the crystal grows under heat and pressure. 
• Rough diamonds are then taken to another facility where hundreds of workers design, cut and polish the stones.
• Lab-grown diamond exports from India tripled in value between 2019 and 2022, while export volumes rose by 25% between April and October 2023, up from 15% in the same period a year earlier, as per the latest industry data.
• The global market share by value of lab-grown gems rocketed from 3.5% in 2018 to 18.5% in 2023 and will likely exceed 20% this year.

Challenges regarding lab-grown diamonds:

• Energy-intensive process:
  • Producers boast that their gems come at a lower carbon cost. 
  • However, some labs use solar energy from the local grid, while others rely on electricity from carbon-heavy sources.

• Cost of producing lab-grown diamonds:

• It has fallen in recent years but remains higher owing to the high equipment, energy, and raw materials costs involved in the manufacturing process.
• Technological hurdles to creating high-quality diamonds in the lab. 
• Diamond production in a laboratory is difficult, requiring exact control of temperature, pressure, and other environmental conditions.
• Establishing credibility and trust in the market. 
• Traditional diamonds have a long-standing reputation and a sense of prestige associated with them. 
• Consumers have been conditioned to believe that natural diamonds hold more value and symbolize luxury. 

Status of lab-grown diamonds in India:

• Indian lab diamond makers exported 4.04 million carats between April and October 2023, a 42% year-on-year increase, according to India’s Gem and Jewellery Export Promotion Council (GJEPC).
• In contrast, natural diamond companies in India reported a more than 25% drop to 11.3 million carats over the same period.
• While natural diamond sales during the COVID-19 pandemic surged as affluent shoppers sought to brighten lockdowns with luxury purchases, demand dropped when economies reopened. Top companies were left holding expensive excess stock.

Conclusion: 

The lab-grown diamond revolution is paving the way for a more sustainable and ethical future in the jewellery industry. However, it is not without its challenges. There are various hurdles from overcoming consumer scepticism to establishing a transparent supply chain. By educating consumers, promoting transparency, and embracing innovation, the potential of lab-grown diamonds can be embraced, thereby creating a positive impact on the environment and society as a whole.