Industry players state that the the focus can now shift to design, sustainability, and accessibility factors that consumers prioritise
In an effort to reshaping the global gem trade, the Gemological Institute of America (GIA), has decided not to apply the 4Cs grading system to lab-grown diamonds (LGD). Known as the foremost authority on gemology, the GIA will now start using descriptive terms to define the quality, instead of applying the cut, colour, clarity and carat weight (4Cs) nomenclature to the LGDs.
GIA will start issuing simplified terms for such stones later this year, broadly categorising them into ‘premium’ or ‘standard’ or no grade at all if the quality is not up to the mark. The body is attempting to ensure that there is a clear demarcation between natural and man-made diamonds. While it will no longer apply the traditional system, it will continue to accept LGDs for evaluation and identification.
The industry players have welcomed the move by citing that such a step will mark a significant shift, clearly distinguishing LGDs from natural diamonds. Experts noted that this move enhances transparency, simplifies buying decisions, and reflects the reality that LGDs are not investment assets but lifestyle products.
“We see this move by GIA reflecting a broader industry shift, one that recognises lab-grown diamonds (LGDs) as an innovation-led category, rather than a direct replica of mined diamonds. We see this as a progressive step that allows LGDs to carve their own identity. Instead of benchmarking against mined standards, the focus can now shift to design, sustainability, and accessibility factors that our consumers prioritise,” highlighted Namita Kothari, Founder at Akoirah by Augmont.
Shift In Pricing Transparency
Any industry shift, be it regulatory or technological, is bound to influence how consumers perceive a product in terms of value and buying decisions. Industry majors emphasised that in the near term, this shift may lead to immediate short-term adjustments, especially in pricing formats or sourcing disclosures. However, for the long term, it will eventually empower customers by offering additional clarity and choice.
“This shift will affect both pricing transparency and consumer decision-making. Simplifying grading into simple tiers removes technical confusion for most buyers, making the purchase process easier and more accessible. However, fewer details may create price variations within the same tier, giving brands more freedom to set prices based on design, brand value and strong consumer education,” highlighted Rupesh Jain, Founder of Lucira.
Notably, experts highlighted that lab-grown diamonds have always been positioned more for self-expression than resale or investment. As the category matures and demand grows, resale channels may evolve, but the true value lies in design, sentiment, and sustainability
“While resale markets remain limited due to mass production and lower rarity, certified quality and buyback or upgrade programs offer consumers added confidence. Lab-grown diamonds continue to appeal to thoughtful buyers seeking beauty, responsibility, and long-term assurance, making them a meaningful and modern alternative in fine jewellery,” noted Vidita Kochar Jain, Co-founder of Jewelbox.
With a new system in place for classification, the experts noted that this is an appropriate opportunity for retailers to build trust by providing transparent pricing, quality assurance, and clearer communication about product origin to consumers.
Blurring The Distinction?
A major concern that exists in the ecosystem today is whether this will blur the line between fashion jewellery and fine jewellery in consumer minds. The experts agreed to some extent that it may challenge old definitions, but in a good way. With LGDs, the industry players are seeing the rise of a new hybrid category of fine jewellery with fashion sensibilities, and they see this evolution broadens the definition of what ‘fine jewellery’ can be.
“While this may not blur the line as fine jewellery, be it LGDs or natural diamonds, have distinct characteristics as compared to fashion jewellery, there will be tough competition in the fashion jewellery sector. As lab-grown diamonds gain popularity, high-end aesthetics are being incorporated into more reasonably priced products,” noted Colin Shah, Managing Director (MD), Kama Jewellery.
Experts agreed that this demonstrates the changing tastes of consumers for well-informed decisions and preference for premium daily-wear jewellery. This is an opportunity for manufacturers to innovate and provide jewellery that is both feasible and aspirational.
Control Over Narrative, Positioning
Lab-grown diamonds do offer brands more control over the narrative, pricing, and positioning. The players highlighted that, in contrast to natural diamonds, which are susceptible to various factors like volatility of mining supply chains and traditional value perceptions, LGDs enable brands to experiment with the help of innovations in a more liberal way.
“Yes, this shift gives brands significantly more control over narrative, pricing, and positioning. Without the rigid 4C grading, brands can emphasise design, craftsmanship, ethical sourcing, and emotional value rather than strictly competing on technical specs,” Jain added.
Industry players emphasised that it allows them to create unique product tiers, justify price premiums based on brand story or added services, and differentiate themselves in a crowded market. Ultimately, this flexibility helps brands build stronger identities and customer loyalty. As the new system will be aimed at simplifying the decisions on the part of consumers, the players in the lab-grown diamond segment see this as an opportunity to move away from the shadow of their counterparts and create their niche and identity.
