This article first appeared in the JNA Lab-Grown Diamond Special 2023.

Demand for lab-grown diamonds (LGDs) has risen exponentially over the years, thanks to stronger consumer awareness and mounting interest in responsibly produced goods. At the centre of these developments are pioneers in the LGD trade such as India’s Bhanderi Lab Grown Diamonds.

Company chairman Ghanshyam Bhanderi revealed that this rapid growth in LGD demand has brought about glowing business opportunities. Citing industry reports, Ghanshyam said the LGD market is expected to grow by 6.4 per cent between 2021 and 2028 to US$9.5 billion by 2028.

In response, the company is planning to significantly ramp up its monthly production capacity within the next three to five years “in the range of thousands or even tens of thousands of carats” per month.

According to Ghanshyam, this would allow Bhanderi to cater to the LGD needs of not only the jewellery sector but also in industrial and scientific applications.

There is also potential for growth in the retail business through product branding. Ghanshyam remarked, “Introducing a new LGD jewellery brand could be a strategic move for us to expand our product line and appeal to a wider range of customers. We might also work on creating a range of LGD jewellery collections that align with the brand's identity and cater to the preferences of our target audience.”

Brand building, however, requires careful planning, research and execution, as well as a comprehensive marketing and distribution strategy following the launch of an LGD jewellery brand, continued the company official.

Solid interest

LGDs in round brilliant, princess and emerald cuts are currently the most sought-after in the trade, according to Ghanshyam. Buyers also look for larger stones, with 1-carat to 3-carat stones being the most popular.

“This is because larger diamonds are often associated with luxury and status, and they are regularly used in engagement rings and other high-end jewellery pieces,” he explained. “In terms of quality, customers generally look for higher-quality stones with excellent clarity and colour.”