Younger generations of consumers are poised to dominate luxury consumption in the coming years.

According to Bain & Co’s Luxury Goods Worldwide Market Study with Altagamma released this January, Gen Z is set to overtake millennials as the luxury market’s core spenders by 2030, accounting for 80 per cent of the commercial market. 

They are already making their presence felt. Gen Z consumers, on average, made their first luxury purchase at the age of 15, compared to age 18 to 20 among millennials. 

Culture of jewellery

Jewellery, however, faces stiff competition from travel, gadgets and experiences for Gen Z’s spend. And when these consumers do consider jewellery purchases, they do this on their own terms. 

Much has been said about this cohort’s penchant for personalised experiences, enhanced creativity, unique offerings and meaningful endeavours. 

Emotional resonance is a key factor in Gen Z's purchase decisions. Not swayed as much by the inherent value of materials or investment potential of a piece, they gravitate towards jewellery that reflect their personality, have a symbolic or meaningful design or makes them stand out from the rest. 

 

 

 

 

Think simple, minimalist yet avant-garde and contemporary designs or eye-catchingly bold ensembles with unusual shapes or materials. Better yet, incorporate elements of what they hold dear, and the chances of success are even higher.

Highlighting ESG sustainability endeavours, being eco-friendly in materials and packaging, showcasing efforts to improve people and planet are but a few ways of staying true to ESG (Environmental, Social and Governance) goals while meeting the expectations of younger consumers.

Prisha Khimavat Surana, Su-Raj Inter Gold Pvt Ltd’s head of Marketing, noted an increase in demand for bold, unique and meaningful jewellery that aligns with both personal identity and values. 

“Consumers in 2025 are seeking customisation, eco consciousness and functionality. Brands and manufacturers have to stay attuned to these changes and continue to offer innovative, stylish and ethical pieces that resonate with the modern jewellery consumer,” she said.

Their personal space

Not confined to brick-and-mortar stores, Gen Zs resort to various non-traditional channels to find what they seek. 

Digital natives, they do their own online research on brands and products, often being influenced by user reviews and social posts when forming an opinion. Companies’ online presence, engagement and reputation thus matter. And no wonder natural diamond firms are upping their messaging on social channels, slipping their virtues in everyday conversations among Gen Z influencers.

Comfortable with eWallets and online purchases, Gen Z expect more from physical jewellery stores. This is where experiential retail, interactive design options and augmented reality try-on services come in.

Live selling sessions, which are both convenient for and familiar to this demographic, are yet another way to reach their purses while building a culture of jewellery and aspirational demand among these  potential customers.

Auctions are gaining ground too. Sotheby’s reported that the number of buyers under 20 grew exponentially in the last five years, while UK-based designer Fei Liu disclosed that his jewellery pieces for auction were popular among younger bidders.

Tailored messaging

Getting through to Gen Z likewise warrants a different approach. 

Rita Maltez, global president of diamond jewellery brand Hearts of Fire, noted that traditional luxury messaging does not necessarily work with the next generation of consumers.

“There has been a very significant shift we have seen in China in the past couple of years, particularly of this move towards more discreet luxury and understated consumption,” she said. “Gen Z buy more for self-empowerment while millennials buy more for love and milestones. Gen Z is also the ultimate digital native, so social marketing is really important. In China, if you are not talking to them on Xiahongshu or WeChat, you are invisible.”

 

 

 

Gen Alpha: The future's future

With all the attention currently on Gen Z, it is easy to overlook the next generation of consumers. But Gen Alpha, while still in their teens, are playing an equally important role in shaping the landscape for luxury goods.

For starters, Gen Alpha is poised to become the largest generation and the most globally connected. Where Gen Z is focused on social media to form communities, Gen Alpha focuses on the hype surrounding brands online. They find brands on YouTube and gravitate towards what is viral, not what is popular or effective. According to the Institute of Promotional Marketing, Gen Alpha can make a product go viral overnight, while Gen Z  is the generation that will keep a brand going.

While Gen Alpha will only become the largest segment of active consumers by 2040, they are already influencing purchase decisions. A study by DKC Analytics reported that typical Gen Alpha parents – mostly millennials – are influenced by their child’s opinions 49 per cent of the time. Moreover, almost all of Gen Alpha parents are learning new brands, products or services from their children.  

 

 

In addition, when they come of age, they will be even more confident online shoppers than Gen Zs, having never known a world without the Internet or mobile devices.

Entrepreneurial in nature, they value connections and inclusivity, making them more likely to champion brands that are equally engaged, interesting and innovative. Visually stimulating concepts and marketing tacks will go far with Gen Alpha consumers, with videos - particularly short form ones - proving more effective and efficient in catching their attention. 

The lifeline of luxury retail is in the hands of consumers past, present and future. While younger consumers grow in importance, millennials remain the largest consumer group at present while Gen Xers and their seniors arguably have the highest spending power.

Keeping tabs on the generations and their specific predilections is how the jewellery trade will thrive - with a firm understanding of the past, a tight grip on the present and an eye to the future.

 

JGW & JNA: 42 Years, 42 Stories is an online series running throughout 2025 to celebrate the 42nd anniversary of Jewellery & Gem WORLD Hong Kong and JNA. A new story of creativity, craftsmanship and innovation will be released every week. Subscribe to free JNA News Alerts to be notified when the next story is out.