Can lab-grown diamonds win over India’s new age shoppers?

Diamonds may be a girl's best friend, say traditional jewellers - but lab-grown diamond (LGD) brands are rewriting that friendship. Once dismissed as synthetic substitutes, these gems are now reframing the narrative: diamonds are still a girl's best friend - only now, they're more ethical, more sustainable, and more affordable. Chemically and optically identical to natural diamonds, LGDs are now being embraced for what they represent: a modern, conscious alternative in a luxury market that’s being reshaped by climate awareness, cost considerations, and digital innovation. 

LGD brands are slowly rewriting their brand narrative as the market perception gradually shifts. “Jewellery has always been a want rather than a need, but today, that want is evolving into something more. People are seeking more—more sparkle, more size, more meaning—without compromising on values or budget,” said Lisa Mukhedkar, Founder & CEO of Aukera. She further added that at a rational level, they meet a growing demand for high impact, ethically made jewellery that allows customers to indulge confidently. 

This was further reiterated by brands like Jewelbox and Solitario, both of which agreed that they are making luxury more affordable without compromising on glam. But in a market where a narrative runs strong, it may be difficult to persuade loyal customers. 

“We recognize that consumer skepticism around lab-grown diamonds stems largely from a lack of awareness. Our marketing approach focuses on education and transparency. We focus on communicating the fact that the identical chemical, physical, and optical properties of lab-grown diamonds are identical with mined diamonds, while also showcasing their ethical and environmental advantages,” said Kabir Kate, Chief Marketing Officer at Solitario. He added that through storytelling, authentic testimonials, collaborations with trusted voices, and experiential campaigns, they are building trust and redefining perceptions. For them, it’s not just about promoting a product it’s about leading a new conversation around luxury, responsibility, and accessibility

Meanwhile, brands are also leveraging online platforms to educate consumers as said by Vidita Kochar Jain, Co-founder of Jewelbox. “Transparency and education are at the heart of our communication. We address scepticism head-on through factual content—via influencer-led videos, UGC, and in-store content that demystifies lab-grown diamonds.”

However Mukhedkar suggested that skepticism is no longer a part of their problem. According to her, the early adopter funnel is well established. Jewellery is a high-involvement category, and women are doing their homework. By the time they walk into an Aukera store, they’re already well-informed: they know lab-grown diamonds offer the same beauty and structure as mined ones—often with better quality and at a more accessible price point. She added that this isn't about convincing anymore; it’s about timing. “The shift is happening, and for many, it’s simply a question of when they choose to cross over.”

Consumer perception

But do consumers buy their narrative? Industry experts believe that more consumers are drawn to LGD because of their adornment value. 

Nisha Sampath, Brand Consultant and Managing Partner of Bright Angles Consulting LLP said,
“The consumer response, especially from younger users, has been increasingly positive.

While the older generation still sees jewellery as an investment category and hence are more wary of LGD, younger generations see the adornment value.” Sampath further added that it is said that LGD is virtually indistinguishable from Natural diamonds, to the naked eye. For them, being able to own a solitaire jewellery at a fraction of the cost of natural diamonds, is a great value proposition. She believes that the ethical and sustainable storytelling around LGD helps them to feel they are making a better choice.

Meanwhile, Puneet Pandey, Strategy Head & Managing Partner, OPEN Strategy & Design explained how LGD’s are evolving from being viewed as second-tier, “Consumer perception of LGDs has evolved rapidly. In the early days, legacy retail—traditional jewellers and chains—transferred their own doubts onto customers, often framing LGDs as second-tier. But that narrative is fading. Consumers today are making independent choices, evaluating LGDs not through legacy bias, but through personal value and aesthetics.” 

Pandey further explained reasons behind their momentum - One reason LGDs are gaining traction is because they address a fundamental unmet need—especially among first-time and younger jewellery buyers. Mined diamonds, with their complex pricing and high barriers to entry, often left consumers with what we can call an impact deficit: even after spending significantly, the diamond felt too small, too dull, too underwhelming.

LGDs solve that. They deliver more brilliance, presence, and perceived value at the same price. In markets like India, where the desire to own and flaunt a diamond is emotionally and culturally loaded, LGDs offer a way to do that without compromise. That’s why we’re seeing more and more consumers not just experiment with LGDs—but embrace them.

Marketing playbook

While digital takes home the largest share for LGD brands owing to their consumer base, there are still notable investments in traditional media. 

Pandey said that digital has been the natural starting point—agile, measurable, and perfect for direct-to-consumer launches. “But as brands mature and look to scale trust and reach, they’re increasingly tapping into traditional formats like print, OOH, and experiential events.” According to him, jewellery is still a tactile, high-consideration category and mass media plays a crucial role in signalling legitimacy, establishing aspiration, and anchoring the brand in culture.

This was also reflected in the allocations undertaken by brands. “Roughly 7-8% of our revenue is allocated to marketing. Major spend is directed towards digital channels, including performance marketing, social media, and influencer collaborations. The remaining is split across traditional and in-store branding,” said Jain. 

Mukhedkar further mentioned that they take a balanced approach between both digital and traditional channels. She said that their focus is on building strong brand awareness and emotional connection with the audience. While digital continues to be a key driver—allowing them to engage directly with their community—they also see value in select offline media to reinforce brand presence. They're also constantly exploring new and emerging platforms to stay culturally relevant and reach their audience where they are.

Influencer Marketing

With digital holding the largest share of the pie, it is only natural that most of it is also diverted towards influencer marketing. For brands like Solitario, they are approaching it with a focus on quality over quantity. According to Kate, they believe in strategic collaborations that are thoughtfully curated and made-to-measure, ensuring a deeper, more authentic connection with their audience. 

He further shared examples - Initiatives like Gujarat Giants x Solitario and Deltin x Solitario are perfect examples where the partnerships go beyond surface-level endorsements — they align with the brand ethos and amplify the story in meaningful ways. 

While Solitario looks to forge connections, Jewelbox and Aukera are leveraging it to spread awareness and educate consumers. 

In a category undergoing disruption—like lab-grown jewellery—people naturally look to trusted voices for guidance, said Mukhedkar. Influencers and role models help shape perception, build trust, and make the new feel familiar. 

Meanwhile, Jain shared that they work with both lifestyle influencers and regional creators to showcase the emotional value and everyday styling of lab-grown diamond jewellery. 

A new market segment?

While a market segment already exists for natural diamonds, how are LGD’s then shaping their storytelling? Are they blending in with the traditional brands or carving out an entirely new niche for themselves? 

“They focus on the aspect of sustainability, ethical sourcing and flawless quality which matches or exceeds natural diamonds. The technology behind the creation of LGD also makes for fascinating story telling,” said Sampath. 

Pandey added that too many LGD brands still echo the mined diamond playbook—leaning on similar tropes, tones, and visual cues. As a result, many feel indistinct, derivative, or cautious. What’s missing is a bold reframe. LGDs are not just a cost-effective alternative; they’re a contemporary expression of luxury. The category needs storytelling that reflects that—anchored in creativity, sustainability, and cultural relevance. There’s enormous white space to build a brand world that resonates with younger consumers and feels emotionally true to the values of this generation.

Brands, meanwhile, were very clear with their approach - they are not replacing mined diamonds but are instead creating a new category. 

Jain said, “We’re not replacing mined diamonds—we’re building a new category that reflects evolving consumer values. Lab-grown diamonds offer a smarter, conscious choice for a generation that wants luxury without the baggage of environmental or ethical compromise.”

This was further reiterated by Kate who said that their aim is to build a new narrative around luxury- one that is inclusive, forward-thinking, and aligned with the values of today’s ethical and value-driven consumer.

Can LGD evolve as a luxury segment?

As LGDs gain popularity for their ethical sourcing and affordability, a critical question looms large in the jewellery industry: Can LGDs evolve into a legitimate luxurycategory, or will they remain a value-driven alternative?

While LGDs offer the same chemical and optical properties as natural diamonds, their perceived value in the luxury space is still under scrutiny. Traditional luxury has long been anchored in rarity, heritage, and natural provenance—attributes that lab-grown diamonds, by design, challenge. However, industry experts argue that the definition of luxury itself is evolving.

“It’s already shifting. The smartest brands are moving away from positioning LGDs as simply ‘better’ or ‘cheaper’. Instead, they’re leaning into what makes LGDs distinct — technology-enabled, design-led, ethically sound, and emotionally resonant,” said Pandey, adding that the values of Gen Z and millennials are fundamentally different from the generations that came before. For them, LGDs are not a compromise. They’re a confident choice. He believes that the opportunity now is to craft an emotional territory that LGDs can own—independent of the mined diamond legacy, and reflective of a new kind of luxury that’s more conscious, creative, and future-facing.

Sampath, however, pointed out that luxury has traditionally been defined by scarcity. In this sense, natural diamonds are logically more luxurious, as they are exhaustible. Whereas there can be no shortage of LGD. She said that for LGD to become a luxury category, exclusivity would have to come from other aspects like limited edition designs, collaborations with top designers etc.

She concluded, “Interestingly, jewellery in India has always been seen as an investment. This is the premise on which Natural diamonds are fighting LGD offering insurance and buyback schemes. If LGD is able to acquire a lasting value, it would aid the category growth.”