Lab Grown diamonds will drive $ 1 billion global diamond certification market by 2028: Report

New Delhi [India], February 8 : The global diamond certification market is projected to grow to USD 1 billion by 2028, up from USD 600 million currently, driven by a 25 per cent increase in lab-grown diamond (LGD) certifications, according to Morgan Stanley.
In December, India's LGD imports surged by 50 per cent month-on-month, while exports rose by 26 per cent, indicating inventory buildup and market share expansion.
India is a key player in the global LGD industry, ranking first in LGD exports with a 29 per cent market share. Alongside China, India accounts for nearly 80 per cent of global LGD production.
IGI is the second-largest global diamond certification provider, holding a 33 per cent market share. It dominates 65 per cent of the LGD certification market and has a 42 per cent market share in studded jewellery certification.
In India, IGI enjoys a 50 per cent market share in certification services, benefiting from the country's position as a hub for diamond cutting and polishing.
Certification is a defensive business with high barriers to entry, similar to credit rating agencies in the financial sector. The industry is largely controlled by Gemological Institute of America (GIA) and International Gemological Institute (IGI), which together account for 80 per cent of the global certification market.
IGI, a key player in this industry, is well-positioned to benefit from this surge. The company is projected to enhance its EBITDA margins from 54.6 per cent in 2024 to 56.9 per cent in 2026, reinforcing its strong market presence and operational efficiency.
IGI is set for robust earnings growth, driven by rising demand for diamond certification services, particularly in the lab-grown diamond (LGD) segment, according to Morgan Stanley.
The company is expected to deliver a 14 per cent revenue CAGR over 2024-28, supported by strong growth in India (14 per cent), the Netherlands (16 per cent), and Belgium (13 per cent).