International News

Jewellery sector’s growth will be fueled by a younger, diverse clientele: McKinsey & Co luxury fashion report

Jewellery sales are expected to regain momentum with 3% to 5% projected growth. An increasing number of consumers will transition from non-branded to branded jewellery.

Published

1 year ago

February 17, 2025

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A 2025 luxury fashion report by McKinsey & Co forecasts jewellery and leather goods to be the fastest-growing categories of the luxury goods industry through 2027. The jewellery sector’s growth will be fuelled by a younger and more diverse clientele.

The report notes that in the period 2019-2023, the jewellery category experienced a remarkable 8% CAGR (compound annual growth rate), globally. However, in 2024, growth slowed down between 2% to 4%. This year, jewellery sales are expected to regain momentum with 3% to 5% projected growth, and accelerate to 4% to 6% by 2027.

Jewellery sector’s growth in the next 3 years will be shaped by shifting customer profiles and buying behaviours. An increasing number of consumers will transition from non-branded to branded jewellery.

High jewellery sales are likely to increase in line with the growing number of ultra-high-net-worth individuals worldwide. Moreover, growing interest among younger buyers in genderless jewellery, along with luxury brands investing in technology and immersive experiences will further shape interest among digital natives and new consumers

However, the report cautions that an uncertainty in a clear segregation between lab-grown diamond and natural diamond markets could pose a challenge to this growth.

Key points:

Jewellery to grow globally between 4%-6% through 2027: McKinsey & Co.
High-jewellery demand to rise as the wealthy population grows worldwide.
Global iconic jewellery brands continue to lead growth for luxury conglomerates
Diamond-studded jewellery to see the biggest growth in India in 2025: Redseer
India’s precious jewellery market to grow at a healthy 11-13% CAGR until 2028
Organised jewellery sector in India to grow 20% year-on-year in FY25: Ind-Ra

Related Topics:2025 DiamondJewelry HighJewelry internationalnews JewelryGrowth LuxuryJewelry MarketTrends

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International News

Jewellery Was The Top Category For Global Luxury Spending In 2025: Bain & Company-Altagamma

Fundamental Shift in luxury consumption—from ownership to meaningful experiences, AI-driven shopping journeys

Published

18 hours ago

July 8, 2026

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Despite economic uncertainty, geopolitical tensions, and changing consumer behaviour, the global luxury industry is showing signs of stabilization. According to the Bain & Company–Altagamma Luxury Goods Worldwide Market Study 2026, global luxury spending reached €1.443 trillion in 2025, with the personal luxury goods market expected to return to moderate growth in 2026. Jewellery was the top category for global luxury spending in 2025

The report highlights a fundamental shift in luxury consumption—from ownership to meaningful experiences, AI-driven shopping journeys, and greater demand for personalization. Brands that succeed will be those that strengthen cultural relevance, embrace AI, and deliver emotionally engaging experiences.

Key Highlights

Global luxury spending reached €1.443 trillion in 2025 and is projected to grow 0–2% in 2026.
The personal luxury goods market stood at €358 billion in 2025 and is expected to grow 2–4% in 2026, reaching €365–373 billion.
Luxury experiences continue to outperform tangible goods, reflecting consumers’ preference for memorable experiences over ownership.
Jewellery is the strongest-performing luxury category, followed by apparel, eyewear, and fragrances.
Leather goods, footwear, and cosmetics remain under pressure, though recovery is gradually emerging.
The Americas, led by the US, are driving growth, fuelled by younger consumers and expanding upper middle-class spending.
Europe and the Middle East continue to weigh on market performance due to weaker tourism and geopolitical uncertainty.
China is showing cautious recovery, with online luxury sales rising 25–35%, driven more by fashion than status-led purchases.
Around 60% of luxury brands are now outperforming last year’s results, indicating improving market resilience.
Nearly 50% of luxury shoppers consult the second-hand market before purchasing new products, underlining the growing importance of resale.
Artificial Intelligence is transforming luxury retail, with half of consumers already using AI during their purchase journey for discovery and product comparison.
More than 80% of the luxury market’s value is represented by brands that actively invest in sports sponsorships to build cultural relevance.
Immersive luxury experiences—including bespoke travel, fine dining, and local cultural experiences—continue to gain popularity.
Consumers increasingly associate luxury with personal fulfilment and meaningful living, rather than status or social recognition.
Bain identifies three priorities for luxury brands:
- Deliver immersive, experience-led luxury.
- Build stronger cultural relevance across diverse consumer groups.
- Leverage AI for personalization and co-creation with customers.

The luxury industry is entering a new phase where growth will be driven less by products and more by experiences, emotional connections, AI-enabled personalization, and authentic brand meaning. While macroeconomic and geopolitical challenges remain, brands that adapt to evolving consumer expectations are well positioned for sustained growth.