Jewellery emerges as luxury’s fastest-growing segment

Luxury jewellery is becoming one of the strongest-performing categories in the global fashion industry as demand for traditional products such as handbags and shoes continues to slow. Industry analysts say major luxury houses are increasingly investing in jewellery, viewing it as the sector with the greatest growth potential amid changing consumer preferences.
The shift has benefited both established jewellery brands and smaller luxury labels. Companies that were once known primarily for fashion and leather goods are now placing greater emphasis on expanding their jewellery collections to attract consumers looking for timeless, investment-worthy pieces.
Among the biggest beneficiaries are luxury groups Richemont and LVMH, which own some of the world’s leading jewellery brands. However, smaller brands have also recorded strong growth, encouraging fashion-focused companies to strengthen their presence in the category. According to the report, the industry’s positive performance has renewed interest in jewellery across the luxury sector.
French luxury group Kering, which owns jewellery brands Pomellato and Boucheron, reported particularly strong results earlier this year. The company announced in April that sales from its new jewellery division increased 22% on a comparable basis during the first quarter, outperforming all of its other business segments. The figures highlighted jewellery’s growing importance as a revenue driver.
Luxury brand Hermès has also experienced rapid growth in jewellery. Analysts at investment firm Vontobel estimate that the company’s jewellery business has achieved a compound annual growth rate of nearly 30% since 2019, although they note that the division still represents a relatively small part of Hermès’ overall business.
Industry experts believe this trend reflects broader changes in consumer behaviour. Luxury analyst Madjo said, “Even at soft luxury players like Hermes, Prada, Gucci, everybody’s putting a bit more emphasis on jewellery because that’s where the growth is coming from right now. So you want to be exposed to that.”
At the same time, traditional luxury categories such as handbags and shoes are facing increasing pressure. Hermès, whose reputation has long been built around its highly exclusive Birkin bags, recently saw its shares fall about 10% after reporting weaker-than-expected first-quarter growth. The results prompted questions about whether the company’s scarcity-based business model can continue delivering the same level of success.
Claudia D’Arpizio, senior partner at consultancy Bain & Company, said changing consumer tastes are reshaping the luxury market. “Bags and shoes are facing meaningful headwinds, as both have experienced significant softening in consumer desirability, particularly among younger audiences,” she said. She added that these categories have traditionally generated strong revenues and profit margins, but post-pandemic market conditions have made them far more challenging. According to D’Arpizio, luxury brands must now develop new strategies to remain competitive, with jewellery increasingly emerging as one of the industry’s most promising growth opportunities.