India is on track to reshape the global diamond jewelry market, potentially driving a 2% compound annual growth rate (CAGR) over the next decade, according to U.S.-based diamond analyst Paul Zimnisky.
In 2024, India emerged as a bright spot in the diamond jewelry industry, posting double-digit sales growth, while the U.S. market saw a modest decline and China suffered a steep drop. This momentum has pushed India ahead of China as the second-largest consumer of diamond jewelry, with its market share rising from an estimated 5-8% pre-pandemic to approximately 10-12% today.
Aggressive Expansion and Growing Diamond Demand
Major Indian jewelers, including Titan’s Tanishq, Zoya, and CaratLane, are fueling this surge through aggressive retail expansion. Titan alone plans to surpass 1,000 stores by March 2025, up from 850 the previous year. While diamonds have historically represented just 10-20% of fine jewelry sales in India—compared to 50% in Western markets—this share is set to grow significantly.
Ajoy Chawla, CEO of Tanishq, emphasized this shift in a recent interview, projecting that India’s diamond jewelry market could reach $20-$22 billion within the next 7-8 years. If realized, this expansion alone could push global diamond jewelry demand by 2% annually.
Natural vs. Lab-Grown Diamonds: India’s Stance
Unlike Western markets where lab-grown diamonds (LGDs) are gaining traction, Titan and other leading Indian retailers remain committed to natural diamonds. Consumer demand for authenticity has kept LGDs at bay, though Titan acknowledged the significance of the growing lab-grown sector by investing $20 million in U.S.-based LGD retailer Clean Origin in 2022. However, the investment faced setbacks, leading to a material impairment in 2024.
De Beers & GJEPC: Strengthening India’s Natural Diamond Market
Recognizing India’s critical role in the diamond sector, De Beers has partnered with the Gem & Jewellery Export Promotion Council (GJEPC) to launch the Indian Natural Diamond Retailer Alliance. The initiative aims to support independent jewelers with marketing tools to reinforce the appeal of natural diamonds in the country.
As India’s economy thrives and consumer appetite for diamonds continues to expand, the question remains: Will India singlehandedly drive the global diamond industry’s next era of growth?