Soaring Gold Prices Push Titan Towards Lab-Grown Diamonds; Middle-Class Demand Under Pressure

Titan Company Limited is adjusting its jewellery approach as high gold prices change traditional buying patterns in India, as per The Economic Times report. The shift reflects changing affordability dynamics rather than changes in consumer preference alone. 

Rising Gold Prices Alter Buying Behaviour 

Gold jewellery in India has traditionally been linked to weddings, festivals, and personal milestones. Over time, rising gold prices have increased the cost of ownership, making traditional purchases harder for middle income households. 

As prices move beyond the comfort range of many buyers, discretionary jewellery spending has shown signs of moderation, particularly in weight based gold purchases. 

Titan’s Shift Towards Lab Grown Diamonds 

Titan has expanded its focus on lab grown diamonds as an alternative within its jewellery portfolio. These products offer lower ticket sizes compared to natural diamond and gold jewellery, aligning with affordability considerations. 

The move is positioned as a response to price sensitivity rather than a change in cultural significance attached to gold. Lab grown diamonds provide design flexibility while keeping overall costs lower. 

Read More: India's Gold Demand to Decline in 2026 as Jewellery Buying Slumps; Investment Demand Rises! 

Impact on Middle Class Consumption 

Middle class consumers have traditionally viewed gold as both adornment and store of value. Higher prices have reduced the frequency and volume of purchases, especially for non essential occasions. 

Jewellery brands are therefore offering alternatives that balance emotional appeal with accessible pricing, including lighter designs and non gold materials. 

Changing Product Mix in Organised Jewellery 

Organised jewellery retailers like Titan are adjusting product mixes to reflect evolving demand. This includes higher visibility for studded jewellery and lower gram weight items. 

The strategy indicates adaptation to prevailing price conditions while maintaining retail footfall and transaction volumes. 

Titan Share Price Performance  

As of February 04, 2026, at 11:02 AM, Titan share price on NSE was trading at ₹4,142.90 up by 1.83% from the previous closing price. 

Conclusion 

Titan’s increasing emphasis on lab grown diamonds highlights how elevated gold prices are influencing consumer behaviour and product strategies in the jewellery sector. The shift reflects current affordability constraints and changing purchasing patterns within the Indian market. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.