Global lab-grown diamond output to treble in 10 years. Triggered by a sharp increase in demand backed by robust production facility across leading consumption centres, global laboratory (lab) grown diamond output is likely to treble in 10 years to reach 19.2 million carats by 2030, said a report by the global consultancy firm Bain & Co.
The firm estimates total global lab-grown rough diamond output at 6-7 million carats in 2020 of which India accounts for about a quarter at 1.5 million carats. The sharp increase in lab grown diamond output estimate is attributed to growing consumer awareness, gem-quality stones and cost-efficient production, thanks to technological breakthroughs.
The study confirms China’s leadership with first rank in lab grown diamond production with an estimated output of 3 million carats. Singapore and the United States of America (USA) jointly hold the third position with an output of 1 million carats.
The synthetic diamonds global market growth is expected to increase by $9.8 billion at a compounded annual growth rate (CAGR) of 8.11 per cent during 2019-2024, the study showed. Lab growth diamond output is estimated to grow by 10 per cent of compounded annual growth rate (CAGR).
India’s polished lab grown exports are growing at around 55 per cent per year, and account for approximately 6.2 per cent of natural polished diamond exports. LGD prices are approximately 80-90 per cent less than natural diamonds. The study finds that India’s gross exports of polished lab grown diamond for the period April 2020 to January 2021 stood at $558.71 million, marking a year-on-year growth of 57 per cent.
“Improving accuracy and speed in lab growth diamond detection machines has today made it feasible to maintain the integrity of both diamond pipelines with relative ease. As long as disclosures are made, there is a bright future for lab grown diamonds to co-exist with natural diamonds. We believe lab grown diamonds have great potential for employment generation and contributing to the country’s export basket,” said Colin Shah, Chairman, Gems and Jewellery Export Promotion Council (GJEPC), the apex industry body.
India’s lab grown production is mainly through the carbon vapour deposition (CVD) method, followed by high pressure high temperature (HPHT). Chinese production is primarily through the HPHT method. It is estimated that India has approximately 1,500 to 1,800 lab grown diamond reactors, internal GJEPC research shows.
The lab-grown diamond industry is expected to employ some 1.15 million people worldwide by the year 2050.