Malabar Gold & Diamonds, one of India’s largest jewellery retailers, is evaluating a potential entry into the lab-grown diamond (LGD) market as part of its efforts to diversify its offerings and respond to changing consumer preferences. According to a report by Mint, the $6.2 billion jewellery major is currently conducting research to understand demand dynamics for lab-grown stones and is considering launching a separate brand identity for the category.

The move comes amid growing interest in LGDs, which, despite forming a small share of India’s diamond market—estimated at $0.4 billion out of a total $6.2 billion in FY25—are gaining traction, particularly among price-conscious and younger buyers. The company is reportedly keen on keeping its lab-grown offering distinct from its natural diamond portfolio, recognising the differences in consumer expectations and positioning.

Malabar’s foray into this emerging segment would place it among a small group of national jewellery chains exploring the LGD space. Senco Gold Ltd, for instance, began pilot-testing lab-grown diamonds under a sub-brand last year. Although India is one of the world’s largest producers of LGDs, domestic retail adoption remains at an early stage, lagging behind the manufacturing boom.

At the same time, Malabar is also responding to the impact of rising gold prices, which have constrained consumer budgets and affected purchase volumes. In April 2025, gold reached as high as Rs.96,875 per 10 grams, prompting retailers to rethink their product mix. To cater to value-conscious buyers, the company is increasing its focus on lower caratage gold jewellery, including 18K and 14K collections, without compromising on design aesthetics.

As part of its broader strategy, Malabar plans to open at least 50 new stores in India in the current fiscal year, continuing its retail expansion across the country. The group, which operates over 390 stores in 13 countries, primarily caters to the wedding jewellery segment but also retails solitaires and engagement rings.

With both the lab-grown and natural diamond segments expected to grow—projected to reach $0.6 billion and $8.6 billion respectively by FY28, as per Wazir Advisors—the retailer’s plans signal a calibrated but forward-looking approach to new market opportunities.