HOW IS THE LAB-GROWN DIAMOND INDUSTRY AFFECTING GLOBAL DIAMOND MARKETS IN TERMS OF INVESTMENT TRENDS, MARKET CAPITALIZATION, AND ITS IMPACT ON ECONOMIES RELIANT ON TRADITIONAL DIAMOND MINING?

Abstract

The explosive growth of lab-grown diamonds (LGDs) is causing a significant shift in the diamond market. Natural diamonds controlled the market for a long time, but LGDs are becoming fierce rivals. They are a popular option since they are less expensive, more environmentally friendly, and free from the moral dilemmas associated with mining. By comparing their market share with natural diamonds, analysing the advantages and disadvantages of each, and learning what consumers think of them, this study examines how LGDs are revolutionising the diamond industry.

The market for LGDs is being driven by younger, eco-conscious consumers, particularly millennials and Gen Z, in Western nations like the US and the UK. In contrast, because of cultural preferences for natural diamonds, acceptance is delayed in countries like China and India. The paper also discusses how economies that depend on mining diamonds face risks as LGDs grow in popularity but could find opportunities in producing these lab-made gems. It explains how LGDs are attracting investors and changing the face of the global jewelry market.