After a record year, the luxury jewellery industry is at a crossroads. What will drive growth from here?
To sustain momentum, experts say brands should focus on hitting the right price points (the sweet spot can span from $5,000 to $100,000), innovating in traditional categories and upping engagement on social media in both new and established markets.
Overall, luxury is in a downturn, with bellwether LVMH seeing quarterly sales fall 3 per cent in Q3. While the group’s jewellery and watches division was down 4 per cent, thanks to sluggish watch sales, jewellery remained resilient. The same goes for Bvlgari, too, with CEO Jean-Christophe Babin highlighting strong jewellery sales among US and European customers, as well as tourists in Japan. De Beers Jewellers CEO Céline Assimon, meanwhile, declared that the brand’s creative collections are “growing by double digits thanks to strong demand for high jewellery, women buying for themselves and an increasing interest from men in the category”.
“Within the context of normalisation throughout 2023 and 2024, the luxury jewellery sector remains one of the best-performing segments,” confirms Federica Levato, senior partner at Bain Co. “Demand for fine jewellery remains resilient due to its perceived value, long-term investment appeal and higher-than-average exposure to high-end clientele.”
Further indications on the health of the jewellery industry are expected from the upcoming auction season in Geneva this November. Sotheby’s will unveil a rare necklace featuring around 300 carats of diamonds from the now-extinct Golconda mine in India, with a provenance linked to Marie Antoinette. Meanwhile, GemGenève, the gemstone and vintage jewellery fair that coincides with the auction calendar and attracts gem buyers from all major jewellery houses, is expecting a record number of visitors this year.
But the old jewellery playbook doesn’t have the same stamina. Geopolitical tensions are putting pressure on supply chains, limiting supply. Aspirational consumers are spending less across categories, clashing with higher prices. And a new generation of consumers are preoccupied with environmental footprints and the source of their gemstones. Winning them over won’t be easy.
Here are the trends executives need to know that are changing the jewellery industry.
The boom of the mid-price segment
As demand for high jewellery rises and sales of entry-level pieces decline, the mid-priced jewellery segment, ranging from $5,000 to $100,000, is booming. Brands are adjusting their collections in response, elevating entry-level designs and simplifying high jewellery creations to meet this demand.
Specific collections like Bvlgari’s Tubogas, Gucci Flora and Cartier’s Tressage, fit this category. Pascal Mouawad, co-guardian of Swiss-Lebanese family-owned jewellery maison Mouawad, which recently opened its first European flagship store in London, says the brand has “strategically expanded its offerings in the $10,000 to $100,000 range, particularly with the ‘Wings of Wonder’ collection and an extension of ‘Flower of Eternity’, to cater to this need”.
Bain Co global head of fashion and luxury Claudia D’Arpizio notes that mid-priced jewellery sales can account for 30 to 70 per cent of a brand’s revenue. She explains that this category, which has benefited from the post-Covid boom, bridges the gap between simpler designs and “repeatable high-end jewellery”, allowing brands to attract consumers across all price points. D’Arpizio also comments on the high profitability of the segment, as it is usually immune from the price negotiations that are common in one-of-a-kind high jewellery pieces. In addition to this, it can expand a brand’s reach: the $5,000 to $100,000 segment has become a new entry-price point for those who usually buy above $100,000.
Rethinking the natural diamond narrative
In the past five years, brands like Buccellati, Chaumet and Louis Vuitton have patented new diamond cuts, while Dior made headlines with an exceptional 88.88-carat yellow diamond, unveiled during the opening of its Avenue Montaigne boutique in 2022. In April this year, Louis Vuitton launched its LV Diamonds collection, focusing on its latest diamond cut and bridal jewellery, followed by the Damier collection in September, which reinterprets the house’s iconic pattern in precious metals and diamonds.
With the 140-carat diamond Serpenti Aeterna necklace worn by Priyanka Chopra at Bvlgari’s latest high jewellery event in Rome this past May, the Italian brand — better known for its coloured gems — made a bold statement about its investment in diamonds.
The necklace, crafted entirely from a 150-carat rough diamond, epitomised how legacy brands are reframing the narrative around natural diamonds, which have faced challenges linked to the rise of lab-grown alternatives.
Sales of laboratory-grown diamonds continue to grow: in the US, they surged from making up 20 per cent of all diamond sales to over 50 per cent, while natural diamond sales fell from 80 per cent to below 50 per cent between 2021 and 2023, according to a study by Tenoris, Madestones and Bernstein.
“Lab-grown diamonds have the same atomic structure as natural ones and are of excellent quality, but our clients aren’t buying just the structure — they’re buying the eternity, the billions of years Mother Earth took to create them,” says Babin. The CEO likens lab-grown diamonds to quartz watches, which once threatened the mechanical watch industry in the 1980s. “Quartz watches are more precise, and now we even have digital watches, yet mechanical watches thrive,” he notes, emphasising the emotional and irrational elements of luxury purchases. Still, legacy brands remain steadfast in their commitment to natural diamonds. “Our internal study shows that 25 per cent of Gen Z is interested in lab-grown diamonds, but 75 per cent say that if they ever buy a diamond, it will be a natural one.”
As lab-grown diamonds focus on perfecting the purity of their stones, luxury brands have embraced the imperfections and broader colour ranges of natural diamonds. At its high jewellery event in June, De Beers unveiled a necklace that combined rough diamonds with diamonds in various cuts and even brown diamonds — stones that would have previously been dismissed for high jewellery pieces.
Innovation in engagement rings
Engagement rings, which account for about a fifth of jewellers’ businesses, are going through a phase of innovation, spurred on one hand by the growing demand for high jewellery and on the other by the rising popularity of lab-grown diamonds that are attracting price-sensitive couples.
According to wedding specialist website The Knot, 46 per cent of couples in the US opted for a lab-grown stone in their engagement ring last year, compared to just 12 per cent in 2019.
The rising popularity of lab-grown diamonds should prompt jewellery houses to consider the reasons behind their success and whether their approach can stand the test of time. Prada is the only luxury house that has embraced lab-grown diamonds in its jewellery line. But so far, the brand’s response has been to refresh the narrative around natural diamonds by highlighting their benefits and incorporating them in their corporate social responsibility agenda. Nevertheless, sooner or later, jewellery houses will be confronted by the question on whether to adopt man-made alternatives, as the predictions of experts around the exhaustion of diamond mines come to fruition within the next 30 to 50 years.
At these high price points, it is not unusual for brands to become gem-hunters on clients’ behalves — cue Louis Vuitton and Chopard, which present loose stones during their high jewellery events, even if they’re not necessarily meant for engagement purposes. Others are pushing the boundaries of creativity, like De Beers, which introduced a high jewellery collection of engagement rings, each accompanied by a jacket that transforms the ring into a striking cocktail piece. Simultaneously, at the opposite end of the price spectrum, brands have also embraced the trend of smaller engagement rings, catering to aspirational shoppers on tighter budgets, as suggested by the diamond rings below £3,000 at Dior, Tiffany and Cartier.
Besides helping establish a lasting connection between a couple and a brand for their most sentimental jewellery purchases, the segment of engagement rings now also serves as a way to identify customers inclined to invest more resources in natural diamonds and branded jewellery.
In April, Louis Vuitton unveiled a new range of engagement rings and wedding bands — recognising that a skilled salesperson often pairs a wedding band with an engagement ring. Tiffany, considered by analysts to be the market leader in branded engagement rings, has expanded its offerings to include men’s.
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New technology has further driven innovation, with virtual try-on apps and online services allowing customers to design their engagement rings, such as Cartier’s ‘Set For You’ service. “We see a significant part of our business coming from bridal jewellery, which attracts customers in their late 20s and early 30s,” says Chaumet CEO Charles Leung, emphasising the importance of this segment as a key touchpoint with younger clients. “The bridal market has evolved in the last few years; and as Pomellato’s expertise lies in coloured gemstones, we’ve benefited from the trend of couples moving away from traditional bridal jewellery designs,” says Pomellato’s chief marketing officer Boris Barboni.
High jewellery across categories
Brands are extending the high jewellery concept into other product categories. Last year, Chaumet collaborated with Guerlain to create a one-of-a-kind perfume bottle set with precious stones, featuring a stopper that doubles as a ring. At its latest high jewellery event, Bvlgari introduced two high jewellery perfumes alongside high jewellery bags — a category also embraced by Cartier and Asprey London.
Montblanc has carved out a unique niche with its high jewellery fountain pens, crafted entirely from precious metals and gemstones and featuring intricate enamel work in collaboration with Van Cleef Arpels.
Cartier ventured into fashion with a gold chainmail cape worn by Zoe Saldaña at the 2023 Vanity Fair Oscars afterparty, followed by Tiffany, which created a bespoke diamond mini dress for Beyoncé to wear on her Renaissance Tour. Chopard has expanded into haute couture, debuting a line at last year’s Cannes Film Festival. Although not made from precious materials, Chopard’s gowns are designed to highlight the maison’s high jewellery creations. Chopard co-president, Caroline Scheufele noted that some clients purchased jewellery only after seeing it paired with a dress, while others opted for the entire ensemble — an effective way to up the average cart price.
Erwan Rambourg, global head of consumer and retail research at HSBC, highlights that such projects alongside the high jewellery events where they are usually presented have a broader reach through social media, creating a “trickle-down” effect that boosts the brand’s image across other product lines. While high jewellery itself isn’t the most profitable segment, its prestige significantly enhances the appeal of more profitable parts of the business.
Money on Europe
Even as luxury sales gain momentum in Southeast Asia, Japan and the Middle East, Europe remains a top destination for wealthy tourists. Beyond offering a picturesque backdrop for shopping, Europe is where a luxury brand’s reputation is built, requiring a flagship presence in iconic locations — like Cartier’s 13 Rue de la Paix in Paris or Bvlgari’s Via dei Condotti in Rome. The demand for prestigious addresses is reshaping traditional shopping streets in European capitals. Jewellery stores are multiplying on Via Montenapoleone, which, together with Via della Spiga, Via Manzoni and Corso Venezia, defines Milan’s luxury district. A similar trend is seen in Paris’s Champs-Elysées.
It’s no coincidence that high jewellery events are concentrated in Europe, where brand history and heritage are most visible; and that during the summer, Europe’s chicest holiday destinations are recipients to some sparkle, too, in the form of pop-up jewellery stores. A significance that extends to non-European brands as well.
Since joining LVMH in 2021, Tiffany has prioritised European expansion. The American brand opened a new store on Avenue Montaigne in 2022, followed by a high jewellery boutique at Harrods earlier this year. In September, Selfridges showcased Tiffany’s Windows of Wonder exhibition, featuring archive pieces and specially commissioned works by artists like Damien Hirst and James Righton. Additionally, Tiffany opened a flagship boutique in Madrid this summer, where it hosted a high jewellery event to follow.
“LVMH is trying to turn Tiffany into a more global brand than when they bought it,” says Bernstein luxury analyst Luca Solca. “Tiffany has traditionally been strong in the US, but rather weak in Europe and Asia. Europe is where the most direct competitor brands originate — namely Cartier and Van Cleef Arpels — so it is important for Tiffany to ground its ambitions to contend with these brands on their home turf and thus build a more credible global profile.”
Commenting specifically on Tiffany’s high jewellery boost, Solca says that, “focusing on high jewellery is desirable, as Tiffany is trying to upgrade its profile — which in the US, is linked to silver and bridal.”
Engagement in society and in art
Brands are more actively communicating about their purpose and the causes they support, and for good reason. A 2023 study by BCG and Altagamma on luxury consumer trends found that brand purpose and responsibility are now “non-negotiable”, driven by both regulatory changes, particularly in Europe, and evolving consumer expectations. A brand’s sustainability credentials now influence the purchasing decisions of 65 per cent of consumers, with the figure rising to 72 per cent for Gen Z — a 4 per cent increase from 2019. Additionally, a September 2023 American Express survey found that “brand values” (at 68 per cent) are the second most important consideration in luxury purchases, following “high-quality products” (78 per cent) and closely tied to “sustainability” (67 per cent).
Cartier was a first mover in this space, establishing the Fondation Cartier pour l’Art Contemporain in the 1980s and Cartier Philanthropy in 2012. However, current examples of this trend are seen across major luxury brands, both established and new. Bvlgari, for instance, has long-standing partnerships with Unicef and Save the Children and has recently launched Fondazione Bvlgari to look after artistic projects, such as the restoration of the fabled Torlonia marbles that are on show at the Louvre Museum until 11 November.
Last year, Chaumet launched its Echo Culture Awards to promote cultural and artistic initiatives, Messika recently established its own foundation to support female entrepreneurship, while Pomellato’s platform Pomellato For Women fights against and raises awareness around violence against women.
Looking forward, the industry will need to buckle down to ride out broader luxury turbulence. New hires could help. Analysts expect that a reshuffle in leadership roles within jewellery will drive a new wave of creativity in events, digital innovation and more robust inclusion and diversity efforts, which may help the industry remain in shining black. Because, as Levato says, “what matters now is not visibility but relevance.”
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Correction: Corrected to reflect that De Beers’s creative collections are growing in the double digits, rather than the brand itself. (8 November 2024)
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