This festival season, lab diamonds sparkle as gold prices soar
Lab-Grown Diamonds Surge in Popularity as Gold Prices Soar: Festival Season Trends 2025
Table of Contents
Market Shift: Gold Prices Drive Innovation
The jewelry market is experiencing a transformative shift as gold prices reach unprecedented heights, touching ₹1 lakh per 10 grams before stabilizing around ₹96,000 — marking a substantial 30% increase from last year’s Akshaya Tritiya prices. This dramatic surge has catalyzed a significant evolution in consumer preferences, with lab-grown diamond (LGD) jewelry emerging as an increasingly attractive alternative.
Current Gold Price
per 10 grams
Year-over-Year Increase
from Akshaya Tritiya 2024
Understanding Lab-Grown Diamonds
Lab-grown diamonds are scientifically identical to natural diamonds in their physical, chemical, and optical properties. These gems are created through advanced technological processes in controlled laboratory environments, offering the same brilliance and durability as their natural counterparts at a significantly lower cost.
LGD Performance During Akshaya Tritiya
The festival season has witnessed remarkable performance in the lab-grown diamond sector, with sales figures highlighting the growing acceptance of these sustainable alternatives.
Brand Initiatives and Consumer Response
Leading jewelry brands have introduced innovative offerings to capitalize on the growing demand for LGD jewelry, combining traditional festival appeal with modern sustainability preferences:
Akoirah by Augmont Initiatives
- Premium 10g gold coins at month’s lowest price for purchases above ₹1 lakh
- Special 5g gold offering for purchases between ₹80,000 and ₹1 lakh
- Curated lightweight LGD collection targeting first-time buyers
- Exclusive festival season designs combining gold and LGDs
“Our lightweight LGD collection resonated especially well with first-time buyers, while 35% of our customers during the season were repeat buyers, indicating growing trust in lab-grown diamonds.”
– Namita Kothari, Founder at Akoirah
Changing Consumer Preferences
Market analysis reveals evolving consumer preferences across various demographics and price points:
Market Insights
- Most Popular Price Range: ₹15,000 to ₹80,000
- Bestselling Items: Everyday studs, rings, and pendants
- Preferred Gold Purity: 14 carat and 18 carat
- Target Demographics: Millennials and Gen Z
- Key Purchase Factors: Sustainability and affordability
Future Outlook for Lab-Grown Diamonds
The lab-grown diamond sector shows promising growth potential, driven by increasing awareness and changing consumer values:
“As awareness and availability increases, I believe this segment will move from niche to a mainline product category, particularly in the urban and semi-urban marketplace. It combines a level of aspirational with affordability — making it unique choice during weddings, festivals and lifestyle gifting.”
– Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions
Investment and Market Perspective
Market Analysis
The combination of affordability, sustainability, and modern appeal positions lab-grown diamonds as a significant force in the evolving jewelry market. With gold prices reaching record highs, LGDs offer an attractive alternative for value-conscious consumers seeking quality and sustainability. The segment’s growth is particularly strong among younger consumers who prioritize environmental consciousness alongside aesthetic appeal.
Key Market Drivers
- Rising gold prices pushing consumers toward alternatives
- Growing environmental consciousness among buyers
- Technological advancements improving LGD quality
- Increasing acceptance in traditional markets
- Strong support from established jewelry brands
Published on May 3, 2025
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