This means that branded fine jewellery will grow approximately three times faster than the total market. On the forefront, branded fine jewellery will be on the rise, with an expected compound annual growth rate (CAGR) of 8 to 12 percent from 2019 to 2025. For a market that has often historically been known as the opposite of those attributes, the path to 2025 is poised to send waves of change throughout the industry.
Looking forward, we expect the global fine jewellery market to be more branded, more digital, and more sustainability-focused than ever before. Looking forward to the next five years, we expect branded fine jewellery sales in Asia to grow 10 to 14 percent annually, while watch sales in Asia will grow up to 4 percent per year. Already the biggest regional market, accounting for 45 percent of global fine jewellery sales and 50 percent for watches, sales in Asia are set to expand even further, with China leading the way. We expect demand to increase from younger consumers as well as in domestic markets amid continuing restrictions on international travel and the rise of domestic duty-free zones in China. 2025 industry outlookīetween now and 2025, we expect the jewellery and watches industries to rebound from the COVID-19 pandemic and grow globally at 3 to 4 percent per year (fine jewellery) and 1 to 3 percent per year (watches). Those that anticipate or at least embrace the changes in the marketplace can participate in setting a new gold standard.
While there is little doubt that the market will continue to present tough conditions for both the jewellery and watches industries, the next five years also offer significant opportunities for players to rewrite the rule book across products, distribution models, and engagement strategies. Meanwhile, the abrupt halt to global travel stifled fine jewellery and watches purchases made by consumers on trips abroad, which accounted for some 30 percent of the prepandemic market. Physical retail’s closure for extended periods revealed cracks in the jewellery and watches industries’ slow transition to digital-which lags far behind other luxury categories-with online sales representing 13 percent of the global market for fine jewellery and just 5 percent for watches. As uncertainty caused by the COVID-19 pandemic rippled across the globe and short-circuited demand, the fine jewellery and watches industries suffered revenue declines of 10 to 15 percent and 25 to 30 percent, respectively, putting further strain on slow-to-adapt players and crystalizing emerging trends in the market.
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