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LGD prices tumble; “green, sustainability” hype is fading out

New 18K Lightweight Designer Brand Launches in Trivandrum, Blending Style, Comfort, and Ethical Luxury

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The man-made diamond boom is over, and prices for ultra-trendy lab-grown diamonds are set to tumble this year, industry veterans say. Paul Zimnisky, a leading diamond analyst, foresees jewellers scaling back their business in lab-grown diamonds while ramping up their focus on natural diamonds over the next year. In fact, most jewellers aren’t even bothering to stock lab-grown diamonds in inventory, and are only purchasing them on consignment, he told Business Insider.

Some of the shine behind lab-grown gems has diminished, largely because they’re so widely available. Lab-grown stones now make up around 20% of the total diamond market, Zimnisky estimates, up from nearly zero percent in 2015.

It’s the exact opposite of what jewellers have seen since 2018, when the hype around lab-grown diamonds took off. “Some of the fad is starting to fade a bit,” Zimnisky said. Retailers now “aggressively” push lab-grown stones. “I think it’s become a lot more mainstream.”

Lab-grown diamond prices, already a fraction of natural diamonds, could see an additional 80% decline, according to industry expert Cormac Kinney, CEO of Diamond Standard. Since their mainstream introduction in 2018, the price gap between lab-grown and natural diamonds has expanded, with some lab-grown diamonds now priced at just 10% of their natural counterparts. Kinney believes there is still significant room for prices to drop, anticipating a further 50% to 80% reduction.

“Fashion jewellery is always a very small fraction of real jewellery. Only real is rare.” He added: “Jewellers will tell me that a growing number of couples are coming in one to three years after buying an engagement ring and replacing it with a natural diamond.”

The hype about LGDs being “green and sustainable” seems to be dying out. Pandora’s CEO Alexander Lacik says consumers don’t buy LGDs because they’re “sustainable”. They buy them because they’re cheap.

Alexander Lacik told Fortune magazine: “When we talk about product choice, there are only two things that actually drive behaviour,” he said. Price and design. “ESG (environmental, social, and corporate governance) is a nice feature and for the people that are interested, we have a good story to tell, but it’s not the driver of the business.”

Gen Zs and millennials may claim they’re driven by environmental concerns, said Lacik, but at the end of the day they want the biggest stone they can get for their budget.

LGDs are mostly produced in factories by machines that require constant power. While there is a substantial range of outcomes depending on where the factory is located, the notion that lab-grown diamonds are “more environmentally friendly” is debatable.

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India’s Festive Jewellery Market Eyes Growth As Consumers Shift Towards Lightweight Designs and Value-Led Purchases

JewelBuzz speaking to GJ sector leadership saw that positive consumer sentiment, wedding-led demand, innovative collections and price-sensitive buying are shaping the outlook for India’s jewellery industry ahead of Dhanteras and Diwali 2026. While retailers anticipate healthy value growth, the conversion of advance bookings into actual purchases will be critical.

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India’s gems and jewellery industry is entering the festive and wedding season with cautious optimism, supported by positive consumer sentiment, renewed buying interest and evolving product preferences. From traditional gold jewellery and contemporary lightweight designs to silver coins and lab-grown diamond (LGD) jewellery, the market is witnessing demand across multiple categories as consumers balance festive traditions with budget considerations.

Industry leaders expect the upcoming festive calendar to provide a significant impetus to jewellery sales. However, elevated gold prices, price-conscious consumers and changing purchasing patterns are influencing how customers allocate their budgets, encouraging retailers and brands to sharpen their product offerings, pricing strategies and customer engagement initiatives.

The recent movement in gold and silver prices has added another dimension to the market outlook. While softer prices can improve affordability and encourage buying, consumers remain discerning, comparing designs, quality, certification and overall value before committing to purchases. Consequently, the ability to offer products across price points, supported by transparent pricing and flexible booking schemes, could determine which businesses capitalise most effectively on festive demand.

Lightweight Designs and Contemporary Aesthetics Gain Ground

A prominent trend emerging this season is the shift towards lightweight jewellery that combines traditional appeal with contemporary styling. Higher gold prices are encouraging consumers to reconsider weight and design, with greater interest in versatile pieces that can serve both everyday and occasion-led requirements.

Rajesh Rokde, Chairman of the Gem & Jewellery Council (GJC), highlighted the positive demand environment, noting that consumers are increasingly responding to changing product propositions.

“Higher gold prices are encouraging a shift towards lightweight designs and innovative collections.”

He added that silver jewellery and coins were also gaining traction, while steady retail footfalls and advance bookings indicated that consumers remained confident about making jewellery purchases during the festive period.

Avinash Gupta, Vice Chairman of GJC, similarly pointed to changing consumer aspirations, particularly among younger buyers who increasingly seek jewellery that blends heritage with modern aesthetics.

“We are witnessing a clear preference for contemporary, lightweight designs that blend tradition with modern aesthetics, especially among younger buyers.”

He observed that retailers were responding through more diverse collections and digital engagement, helping them connect with customers whose expectations are evolving. The combination of traditional purchasing occasions and contemporary product development, he suggested, would highlight the industry’s creativity and resilience.

For manufacturers and brands, this shift presents an opportunity to rethink product architecture, including lighter gold pieces, contemporary styling, versatile designs and collections tailored to specific consumer budgets. For retailers, a carefully curated assortment could help sustain conversion even when customers are reluctant to increase their overall spending.

Lab-Grown Diamonds Seek a Larger Share of Festive Spending

Lab-grown diamond jewellery is emerging as another category to watch during the festive and wedding season, particularly among younger consumers and first-time diamond buyers. Its appeal lies in the opportunity to purchase larger stones and contemporary designs at accessible price points, giving customers an alternative within their jewellery budgets.

Aarav Bafna, Director of Akoirah by Augmont, expects LGD jewellery to outperform the broader jewellery category during the season.

“Sentiment has matured from curiosity to conviction,” Bafna said, describing the growing willingness of consumers to choose lab-grown diamonds deliberately rather than merely experiment with the category.”

According to Bafna, Dhanteras and Diwali are likely to support demand for lightweight 14K and 18K LGD jewellery suited to gifting, while the wedding season could generate interest in solitaires, engagement rings and bridal sets.

He also identified certification and transparent pricing as important trust factors, citing IGI and SGL certification as key considerations for buyers seeking assurance. Growing acceptance in Tier 2 and Tier 3 cities could further broaden the category’s reach.

For jewellery businesses, the opportunity extends beyond offering LGD as a lower-priced alternative. Clear communication about stone characteristics, certification, pricing and the distinction between lab-grown and natural diamonds will be essential to building customer confidence. Retailers that understand the different motivations of gifting customers, couples purchasing engagement rings and wedding shoppers may be better positioned to develop targeted collections.

The category’s performance this season will also offer an indication of how effectively LGD jewellery can expand its role in mainstream festive retail, especially as consumers seek a balance between design, perceived quality and affordability.

Softer Bullion Prices Could Encourage Buying

Price movements remain a significant influence on purchasing decisions. A recent decline in gold and silver prices has generated fresh interest, potentially improving affordability for customers who had postponed purchases or were waiting for a more favourable buying opportunity.

Harshal Khandelwal, Director – Khandelwal Jewellers Akola Pvt Ltd., said the recent decline in gold prices was creating an opportunity for retailers to encourage customers to make festive purchases.

“The recent drop in gold rates is a great opportunity for customers.”

His company is using a large lucky-draw campaign to attract buyers, while rate-booking programmes are helping customers secure gold prices amid bullion-market volatility and plan their festive purchases.

These initiatives underline how retailers are leveraging price movements and promotional campaigns to convert consumer interest into confirmed orders ahead of the festive season.

These initiatives reflect a broader retail strategy: converting market movements into a reason to visit stores and commit to purchases. Rate-locking schemes can provide customers with greater clarity over their jewellery budgets, while promotional campaigns may generate additional footfalls and engagement.

However, retailers will need to structure such offers carefully, ensuring that terms are transparent and that promotional activity supports sustainable sales rather than merely increasing store traffic.

Value-Conscious Consumers Demand Better Assortment and Pricing

Despite the positive sentiment, customers are not necessarily spending without hesitation. They are comparing products more carefully, assessing quality and price, and seeking designs that deliver value within defined budgets.

Chetan Thadeshwar, CMD of Shringar House of Mangalsutra Ltd., expressed optimism about demand, citing the combined influence of Diwali, wedding purchases and improved affordability following the recent decline in gold and silver prices.

“Retail sentiment is positive, though customers remain value-conscious and are comparing designs, quality and price before making a decision.”

He expects the festive and wedding calendar to sustain demand in the coming months, particularly for retailers that offer well-curated collections across budgets, including lightweight and occasion-ready jewellery.

This outlook has important implications for retail planning. Rather than relying exclusively on high-value purchases, jewellers may benefit from offering a balanced product mix that includes entry-level gifting options, lightweight gold jewellery, traditional wedding pieces, silver products and contemporary designs.

Manufacturers and wholesalers, meanwhile, will need to align inventory and production with the changing retail requirement. Assortments that provide flexibility in weight, design and price could help retailers serve a broader customer base without compromising on presentation or perceived quality.

Sales Value May Rise Even as Volumes Remain Under Pressure

The difference between sales value and jewellery volumes is likely to be a defining feature of the 2026 festive season. Higher bullion prices can lift the value of sales even when consumers purchase fewer pieces or reduce the quantity of gold they buy.

Prithviraj Kothari, MD- RiddiSiddhi Bullions Ltd.,and National  President-IBJA,  expects festive jewellery sales to grow by 15–20% year-on-year in value, even as volumes remain flat or decline slightly.He also pointed to reported revenue growth of 20–30% among listed jewellers during July–September, while stressing that advance bookings would need to translate into actual purchases for the sector to achieve its anticipated performance.

Khandelwal noted that sales volumes had declined by approximately 15% year-on-year around Ganesh Chaturthi and that Dussehra had been subdued. Nevertheless, he said footfalls were picking up as gold prices held relatively steady in the ₹1.42 lakh–₹1.44 lakh range.

“The key thing to watch is how many advance bookings turn into actual purchases, because that will decide the final number.”

His assessment highlights the need to distinguish between headline revenue growth and underlying consumer demand. An increase in the value of jewellery sold does not necessarily indicate that more pieces are being purchased or that physical volumes are expanding.

For manufacturers, wholesalers and retailers, monitoring average transaction values, unit sales, gold weight sold, customer conversion rates and booking cancellations will therefore be essential to evaluating the season’s actual performance.

Advance Bookings and Bridal Orders Could Support Dhanteras

With Dhanteras falling on 6 November 2026, retailers are banking on advance bookings, rate-lock schemes and early bridal orders to strengthen festive sales. While these initiatives improve demand visibility and help manage bullion-price volatility, converting bookings into actual purchases will determine the season’s performance. Retailers must ensure transparent pricing, timely follow-ups and product availability. The wedding calendar also offers opportunities across bridal jewellery, engagement rings, gifting and occasion wear.

What the Outlook Means for the Jewellery Trade

Positive sentiment presents opportunities across gold, silver and lab-grown diamonds (LGDs), but consumers remain value-conscious. Manufacturers must prioritise lightweight, design-led collections, while wholesalers need flexible assortments and efficient replenishment. Retailers can improve conversions through curated collections, digital engagement and transparent pricing. Jewellery brands must strengthen trust through contemporary designs, certification and clear product information. Across the trade, tracking sales value alongside volumes, margins, average transaction values and booking conversions will provide a more accurate performance assessment.

Conclusion: Conversion Will Decide the Season

Festive and wedding demand remains encouraging, but sustainable growth will depend on affordability, product relevance and customer confidence. The winners this season will be those who convert consumer interest into profitable, completed sales.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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