This year the jewelry segment continued its positive trend, heading for a strong outcome, even as the overall individual luxury goods market lagged.
Last week, global management consulting firm Bain & Company, together with Italian luxury goods industry group Altagamma, released a report; according to the report, there are three possibilities for the market this year:
- The most likely possibility for the 12 months is a slight decline of between 2% and 5%.
- The second possibility will see the market between 2% smaller and 2% larger.
- In the most acute possibility, the personal luxury market would go through an extended downturn of 5% to 9%.
Post-pandemic recovery lifted the personal luxury goods market to EUR 369 billion ($425 billion) in 2023, but the sector slipped 1% to EUR 364 billion ($419.2 billion) in 2024. However, an additional drop of 1% to 3% was anticipated in the first quarter of 2025.
While the prospects for the overall luxury goods sector are less promising, some key segments continued to perform strongly, most prominently personal luxury, which is gaining craze with Gen Z consumers.
The jewelry market did well, though, with a healthy demand for both ultra-luxury and more reasonably priced aspirational goods.
According to Bain, poor tourism has impacted the European market, but continued interest and strong local demand for jewelry have partially recovered that downfall.
Bain commented, Global luxury spending is under pressure, with Gen Z buyers questioning the relevance and cost of luxury products. The United States and China, the two biggest markets for luxury goods, are facing low demand due to economic concerns, which include tariffs. However, there is still some hope, because Chinese consumers show a growing interest in rising local luxury brands, indicating a change in consumer choices.
Claudia D’Arpizio, from Bain & Company, said, “Although demand is falling in the short term, the luxury sector has repeatedly proven an remarkable level of resilience—buoyed by a growing global consumer base and deeply rooted emotional drivers.”
“Across all generations, factors linked with self-satisfaction, position, personal identity, and the celebration of achievements will continue to drive engagement, sustaining and building the lasting significance of luxury within its consumers’ lives.”