Recent market trends highlight the rapid growth of LGDs. In December alone, India’s LGD imports increased by 50% month-on-month, while exports rose by 26%, indicating inventory buildup and a push for greater market share.
India’s Dominance in the LGD Sector
India continues to play a pivotal role in the global LGD landscape, holding the top position in exports with a 29% market share. Together with China, India accounts for nearly 80% of the world’s LGD production.
Certification Market Leaders
The International Gemological Institute (IGI) stands as the second-largest diamond certification provider globally, commanding a 33% market share. IGI holds a dominant 65% share in the LGD certification segment and a 42% share in studded jewellery certification.
In India, IGI enjoys a 50% market share in diamond certification services, benefiting from the country’s strong position as a hub for diamond cutting and polishing.
High Barriers to Entry
The diamond certification industry is characterized by high barriers to entry, comparable to credit rating agencies in the financial sector. The market is largely controlled by two key players—the Gemological Institute of America (GIA) and IGI—which together account for 80% of global certification services.
Future Growth Projections
IGI is well-positioned to capitalize on the increasing demand for diamond certification services, particularly within the lab-grown diamond segment. Morgan Stanley projects that the company’s EBITDA margins will improve from 54.6% in 2024 to 56.9% by 2026, reflecting strong operational efficiency and market presence.
Driven by rising demand, IGI is expected to achieve a 14% compound annual growth rate (CAGR) in revenue between 2024 and 2028. Growth is anticipated to be particularly strong in key markets such as India, the Netherlands, and Belgium.
The surge in lab-grown diamond adoption and certification is set to reshape the global diamond industry, creating new opportunities and reinforcing the importance of reliable certification providers in ensuring product authenticity and quality.
