📉 The jewelry industry may still shine, but the broader luxury sector is losing its sparkle.
✨ According to a recent report by Bain & Company and Altagamma, the personal luxury goods market could shrink by up to 5% in 2025. There are three possible paths:
- Most likely: A moderate drop between 2%–5%
- Neutral case: Flat growth, anywhere from -2% to +2%
- Worst-case scenario: A steep decline between 5%–9%
💰 After peaking at €369 billion in 2023, the market slipped 1% in 2024. The first quarter of 2025 could dip another 1%–3%.
💎 However, jewelry remains a bright spot — especially experiential luxury and aspirational items favored by Gen Z.
🌍 Europe’s market is sagging due to weak tourism, but strong local demand — especially for jewelry — has helped cushion the blow.
🇺🇸🇨🇳 Meanwhile, the US and China, luxury’s biggest spenders, face economic headwinds and waning demand. Chinese consumers are shifting toward local luxury brands, signaling a new trend.
🗣️ “Even if demand eases short-term, the luxury sector is emotionally anchored in identity, reward, and celebration,” says Claudia D’Arpizio, global head of Bain’s fashion and luxury division.