INSIGHT Business Market Monitor – Global
Luxury Market in 2026: stabel, but No “All-Clear” Yet
The global luxury market is showing the first signs of stabilization in the summer of 2026. However, it is still too early to speak of a broad-based recovery. Demand remains selective, regional trends are mixed, and many customers are being more careful about what they spend their money on.
The latest Bain-Altagamma update describes a market that is cautiously recovering after two weaker years. Growth of up to two percent is expected for the luxury market as a whole in 2026. Personal luxury goods could see slightly stronger growth, but will remain dependent on China, the U.S., currency trends, geopolitical risks, and the behavior of younger consumer groups.
China: Beauty Wins, Handbags Are No Longer a Given
This shift is particularly evident in China. Reuters reports that Prestige Beauty is performing better there than traditional entry-level categories in the luxury segment, such as high-end leather goods. Affluent and up-and-coming customers are more likely to spend money on high-end skincare, makeup, and perfume than on expensive handbags.
This is more than just a short-term shift. It shows that customers are reevaluating their priorities when it comes to luxury. Products must do a better job of justifying why they are relevant. High prices alone are less of a selling point. Categories that are purchased more frequently, feel more personal, or are seen as a “self-investment” may benefit.
This trend is important for the watch and jewelry industries because it shows just how cautious the mid-range and aspirational luxury segments have become. Brands that don’t sell in the absolute top segment must explain value, materials, design, origin, and emotional significance more clearly.
Hard Luxury remains more resilient
At the same time, figures from major luxury conglomerates show that jewelry and watches may remain more resilient within the luxury market than segments of the fashion and leather goods business.
Richemont reported a 20 percent increase in revenue at constant exchange rates for the quarter ending in June 2026. The Jewelry Maisons—including Cartier, Van Cleef & Arpels, Buccellati, and Vhernier—grew by 24 percent; the Specialist Watchmakers saw an 8 percent increase. INSIGHT-LUXURY had already highlighted this trend, noting the strength of Richemont’s jewelry brands.
LVMH also showed improvement in the first half of 2026. The group generated 38.6 billion euros in revenue, with accelerated growth in the second quarter. Particularly noteworthy: The Watches & Jewelry segment grew organically by 11 percent in the second quarter. Tiffany & Co. and Bvlgari are explicitly cited by the group as strong drivers of this growth. INSIGHT-LUXURY had analyzed LVMH’s previously weaker performance earlier this year.
This continues a trend: jewelry and high-end watches thrive in markets where products are viewed not merely as fashion items, but as assets, keepsakes, or long-term investments.
Secondhand Goods, AI, and Experiences Are Transforming the Customer Journey
Another point from the Bain-Altagamma update is particularly relevant to the industry: About half of luxury shoppers now check the secondhand market before making a new purchase. At the same time, AI is already playing a role in many purchasing processes. As a result, the pre-purchase information-gathering and comparison phase continues to evolve.
For brands and retailers, this means that the sales process doesn’t begin at the point of sale. Customers are comparing prices, availability, alternatives, reviews, and resale values earlier and more thoroughly. Those who aren’t visible during this phase lose influence over the decision. INSIGHT-LUXURY has already identified these changing information channels as a key issue for the watch and jewelry industry.
Experience-based formats are also continuing to gain importance. Bain and Altagamma point out that experience-oriented luxury is growing faster than the overall market. While this cannot be directly applied to jewelry and watches, it does offer a key insight: advice, atmosphere, service, events, and personal relationships become more important when products need to be explained in greater detail and imbued with emotional appeal.
Supply chains remain a risk issue
Alongside the demand side, the supply side is coming into sharper focus. Investigations by Italian authorities into the supply chain structures of several luxury brands highlight just how sensitive the issue of supply chains has become. Reuters reported in July that Italian authorities had requested documents from nine luxury companies, including Brunello Cucinelli, Moncler, Chanel, and Bulgari. According to Reuters, the companies themselves were not under investigation; the focus was on alleged irregularities at subcontractors.
This is nonetheless relevant to the luxury industry. Transparency, oversight, and documented supply chains are not just sustainability issues, but matters of reputation and trust. Especially with high-end products, a brand’s appeal is not enough if its origin and manufacturing cannot be reliably accounted for. INSIGHT-LUXURY has already identified sustainability, origin, and supply chains as key issues for the future of the watch and jewelry industry.
What does this mean for watches and jewelry?
The global luxury market is stabilizing, but it is becoming more discerning. Growth does not happen automatically; rather, it is strongest where products offer substance, meaning, and compelling reasons to buy.
This presents an opportunity for the jewelry and watch industries—especially when the value of materials, craftsmanship, design, origin, service, and personal significance are clearly linked. At the same time, the pressure is mounting: Customers are comparing products more, making more informed decisions, and expecting more detailed explanations.
The Market Monitor thus paints a clear picture: The industry is not returning to the momentum it had in the years before the correction. It is entering a more selective environment. Stabilization, yes—but only for providers who can convincingly demonstrate relevance, trust, and value.
Sources
Bain & Company / Fondazione Altagamma: Luxury Goods Worldwide Market Study, Spring Update 2026; Altagamma Monitor Update, June 2026.
Reuters: “Prestige Beauty Outpaces High-End Bags as China’s Luxury Spending Evolves,” August 4, 2026.
Richemont: Sales announcement for the quarter ended June 30, 2026, published on July 15, 2026.
LVMH: 2026 First Half Results, published on July 27, 2026.
Reuters: Italian police visit fashion firms including Cucinelli and Moncler as part of a labor investigation, July 16, 2026.
INSIGHT-LUXURY: Richemont Accelerates Growth Thanks to Its Jewelry Business; LVMH: Mixed Financial Results for 2025; The Watch and Jewelry Industry Caught Between New Channels of Information; Sustainability in the Watch and Jewelry Industry.
