The global luxury industry stands at an inflection point. Following years of vigorous recovery, the personal luxury segment is now entering what experts describe as a “reset” phase. Yet amid this broader slowdown, fine jewelry and watches have distinguished themselves by demonstrating remarkable resilience and sustained momentum—defying the challenges that have tempered growth in other luxury categories.

The latest True-Luxury survey by Boston Consulting Group (BCG) and Italian luxury think tank Altagamma reveals that the personal luxury market—which includes jewelry, apparel, and leather goods—is contending with significant headwinds driven by economic uncertainty and evolving consumer behavior. Despite this, fine jewelry and watches have continued on a stable growth trajectory, with positive projections for the near term.

A major driver behind this resilience is the steadfast loyalty of top-tier clients. This ultra-affluent group, representing just 0.1% of the global population, accounts for an outsized 23% of total luxury spending. Notably, over half of these consumers plan to increase their expenditure on luxury jewelry and watches by 5% to 25% over the next 18 months—providing a solid foundation for continued growth.

By contrast, the aspirational segment—comprising consumers who value luxury but face tighter financial constraints—paints a different picture. Around 35% of aspirational shoppers have cut back or paused luxury purchases in the past year, channeling spending instead toward savings, wellness, and the secondhand market. This divergence underscores a growing polarization within the luxury landscape.

Beyond consumption, fine jewelry and watches hold a distinct allure as tangible assets. The survey found that 34% of high-net-worth individuals view these purchases as investments—valuing them as both symbols of craftsmanship and stores of enduring value. 

Looking ahead, Generation Z emerges as a promising growth driver for luxury jewelry and watches. According to the survey, 80% of Gen Z respondents plan to buy premium goods in the next year, and 70% feel represented by luxury brands. 

To stay competitive, luxury brands must evolve alongside these shifting dynamics. BCG emphasizes the need to recommit to core values: exceptional quality, exclusivity, and cultivating deep personal relationships with clients. Many jewelry houses are responding by investing in “clienteling”—an approach that builds one-on-one connections and offers highly personalized services—aimed at strengthening loyalty and maintaining brand prestige.

Ultimately, the enduring success of jewelry and watches reflects a unique blend of attributes: emotional resonance, investment potential, superior craftsmanship, and cultural symbolism. As the broader luxury market undergoes its reset, these products remain highly sought after for their ability to offer immediate gratification coupled with long-term value.