As major markets falter, fine jewellery shines through turbulence, offering a glimmer of resilience amid the luxury industry’s sharpest downturn in over a decade.
A new report by Bain & Company, in collaboration with Altagamma, signals a shifting tide for the global luxury sector — one marked by economic headwinds, uneven consumer sentiment, and growing market fragmentation. Described as the most challenging period since the 2008 financial crisis (excluding the COVID-19 anomaly), the report outlines how luxury is entering an era where volatility becomes the new normal.
The overall personal luxury goods market, which had rebounded to €369 billion ($435 billion) in 2023 following the pandemic, saw a slight dip to €364 billion ($429 billion) last year — a 1% decline, or flat when accounting for currency shifts. While many legacy categories felt the pressure, jewellery stood out as a rare bright spot.
Leading luxury groups like LVMH and Kering reported muted or negative growth in early 2025, with both companies citing jewellery as an outperforming category. LVMH saw gains in its watches and jewellery division, despite a broader 2% decline in revenue. Similarly, Kering’s jewellery houses—Pomellato and Boucheron among them—posted growth, even as Gucci continued to face headwinds.
According to Bain, the luxury consumer’s confidence has been shaken by a convergence of factors: geopolitical unrest, trade tensions, currency volatility, and shifting cultural values. These dynamics have led to significant slowdowns in key markets like the United States and mainland China, traditionally the powerhouses of luxury spending.
In the U.S., economic uncertainty and tariff-related instability have dampened consumer enthusiasm. In China, the middle class has adopted a wait-and-watch stance, though affluent buyers remain relatively unaffected. A small yet growing interest in domestic Chinese luxury brands has also emerged, signaling a potential shift in brand loyalty and identity-driven consumption.
Europe and Japan, on the other hand, have seen weakened tourist spending, though domestic consumption—particularly in jewellery and apparel—continues to offer support. Meanwhile, regions like the Middle East, Latin America, and parts of Southeast Asia remain resilient, benefitting from growing local demand and a rising appetite for aspirational purchases.
Despite short-term turbulence, Bain emphasises that the sector’s fundamentals remain solid, with long-term optimism driven by innovation, diversification, and emerging consumer segments. Jewellery’s standout performance, rooted in its emotional value and timeless appeal, suggests that in times of uncertainty, tangible luxury still holds unmatched allure.