The global diamond certification market is on track to reach a valuation of USD 1 billion by 2028, up from USD 600 million today. This significant growth is fueled by a 25% surge in lab-grown diamond (LGD) certifications, according to a new report by Morgan Stanley.
In December, India saw a remarkable 50% increase in lab-grown diamond imports, along with a 26% rise in exports, signaling strong market expansion and inventory buildup. India plays a central role in the global LGD sector, leading the world in exports with a 29% market share. Alongside China, India accounts for nearly 80% of the global lab-grown diamond production.
International Gemological Institute (IGI), the world’s second-largest diamond certification provider, holds a 33% global market share. It commands 65% of the LGD certification market and has a 42% stake in studded jewelry certification. In India, IGI holds a dominant 50% market share, capitalizing on the country’s reputation as a hub for diamond cutting and polishing.
Certification services in the diamond industry, much like credit rating agencies in the financial sector, are a high-barrier business, with major players like the Gemological Institute of America (GIA) and IGI dominating the global market with a combined share of 80%.
IGI stands to benefit from the accelerating demand for diamond certification, particularly within the rapidly growing lab-grown diamond sector. Morgan Stanley’s forecast suggests that IGI’s EBITDA margins will rise from 54.6% in 2024 to 56.9% in 2026, reflecting operational efficiency and robust market positioning.
The company is poised to experience a significant revenue boost, with a projected 14% compound annual growth rate (CAGR) from 2024 to 2028, driven by increasing demand in key markets including India, the Netherlands, and Belgium.
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