Jewellery continues to perform strongly in a luxury market that is increasingly favouring experiences over physical goods, revealed a study by American consultancy Bain & Co.

The research, Bain & Co Luxury Goods Worldwide Market Study, was released in June 2024 in collaboration with Italian luxury goods manufacturers’ association, Altagamma.

The global luxury market demonstrated "remarkable stability" amid geopolitical and economic instability in 2023 to exceed a record €1.5 trillion (around US$1.6 trillion), driven by a rebound in luxury travel and solid US holiday sales in the fourth quarter, the study said. It further revealed that there is a continuing trend favouring experiential offerings over tangible goods. In fact, the personal luxury goods market dipped slightly in the first quarter of 2024. 

Luxury brands’ ability to address rising prices while maintaining a robust price-value equation in the eyes of consumers will thus be key to maintaining stable growth across subsectors, it added.

Jewellery and small luxuries 

Jewellery stands out as a top performer in the current landscape, with consumers making investment-led purchase decisions, surpassing watches in growth and showcasing strength in both uber- and entry-luxury segments, the study said. 

Meanwhile, aspirational consumers are also redirecting spending toward makeup, fragrances, and eyewear, viewed as small indulgences. 

“A dual strategy, framed around the allure of top-tier clientele and the appeal of smaller luxury indulgences, is driving growth at both ends of the price spectrum,” said Federica Levato, partner at Bain & Co and leader of the firm’s EMEA Luxury Goods and Fashion practice, co-author of the report. “But now is not the time to for brands to rest on their laurels. As brands continue to face turbulence in the market, the winners will be those that rethink the way they craft and deliver their value propositions across multiple price points and touchpoints, growing their reach while building advocacy and loyalty among their customers.”

As they continue to navigate uncertain times, brands will need to invest in growth enablers, defend core business elements, maintain agility in decision-making, and optimise stock management to ensure efficiency and responsiveness to market demand, the study said.