In a challenging year for luxury brands, jewelry has proven to be the most resilient category, according to Bain & Co.'s latest Luxury Study, conducted in collaboration with Italian luxury-goods company Altagamma.
Market Snapshot
The global personal luxury-goods market is projected to contract by 2% in 2024, reaching €363 billion ($383.48 billion)—marking its first slowdown since 2008, excluding the COVID-19 period. Total global luxury spending is expected to remain flat at approximately €1.5 trillion ($1.58 trillion).
The decline is largely attributed to reduced interest among younger consumers, shrinking the luxury customer base by approximately 50 million over the past two years.
Jewelry’s Enduring Appeal
“Jewelry is holding strong, driven by high-jewelry demand and robust performance in the U.S. market,” Bain reported. Other categories, such as watches, leather goods, and shoes, have seen slower growth as consumers shift to more selective spending.
The secondhand market is also gaining momentum, particularly in jewelry, heritage apparel, and leather goods, as consumers seek value-oriented options.
Regional Performance
- Japan and Southern Europe: Sales remain strong.
- United States: Shows continued improvement.
- China: Experiencing a rapid slowdown.
- South Korea: Facing challenging market conditions.
A Brighter Future
While 2024 poses challenges, Bain predicts a slight market improvement in 2025, followed by accelerated growth driven by increasing wealth and a larger luxury consumer base. By 2030, the market is expected to enter a sustained upward trajectory.
Advice for Brands
“To secure future growth, brands must rethink their strategies,” says Federica Levato, a Bain partner. She advises focusing on:
- Rediscovering core brand values like craftsmanship and creativity.
- Building culturally resonant, personalized customer experiences.
- Leveraging technology for seamless execution.
Jewelry’s steady performance highlights its unique ability to weather economic headwinds, offering valuable insights for other luxury sectors.