A recent study conducted by PHD Research Bureau of PHD Chamber of Commerce and Industry, an Indian body, has corroborated a wide held view – Lab-grown diamonds have a stellar future. The newly released report predicts that by year 2030, global production of Lab-grown diamonds will cross 20 million carats.
At the same time, production of mined diamonds will diminish from the current level of around 125 million carats in 2015 to only 62 million carats in 2030. Whereas the annual demand for diamonds worldwide will reach 221 million carats by 2030.
Current production level of Lab-grown diamonds is only around 360,000 carats but the significant increase by 2030 to 20 million carats level will help in addressing 13% of the demand supply gap. Besides, according to the report, further scope to increase Lab-grown diamonds production and reducing the demand supply gap exists.
Instead of being mined from earth, Lab-grown diamonds are grown in ‘Diamond growing Greenhouses’ – laboratories and have the same exact physical, chemical, optical and other properties as Earth-mined diamonds. Though source of origin is the only difference between Earth-mined diamonds and Lab-grown diamonds, the latter have additional benefits of being completely eco-friendly, conflict-free and socially responsible.
However, lot of misnomers and misinformation exists surrounding Lab-grown diamonds, as they are incorrectly being perceived as ‘Synthetic’. This has also led to some legal fallout, like incorrectly classifying Lab-grown diamonds under a separate HS Code – 7104, which is for synthetic stones, instead of its recognition under HS Code 7102, meant for diamonds. The PHD report mentions that Lab-grown diamonds should be categorized under HS Code 7102 with a separate unique sub-category at 6th and 8th digit level for correct and transparent classification and differentiation from Earth-mined diamonds.
There is lot of confusion, rumors and unfounded fear in the diamond industry regarding Lab-grown diamonds. Gemological Science International (GSI) CEO Mark Gershburg and India’s Gem & Jewellery Export Promotion Council (GJEPC) chairman Praveenshankar Pandya both are of the opinion that better understanding of Lab-grown diamonds can dispel fear and avoid confusions.
Adoption of Lab-grown diamonds globally is swiftly increasing as they give consumers a choice. According to PHD Chamber, the sunrise industry can enhance a nation’s economy by employment generation, increased foreign exchange earnings and providing a sustainable, ecological and origin guaranteed diamond source.
Global Research and Consultancy firm Frost & Sullivan had also earlier made similar predictions about Lab-grown diamonds and PHD Chamber’s report confirms Lab-grown diamond’s stellar future ahead.