Perhaps it’s not a surprise that new weddings are on the rise. Weddings were postponed during lockdowns, and with the fast onset of vaccines now, plus the nicer weather, there’s an uptick. The luxury watch and jewellery industry will be a big beneficiary, as U.S. personal consumption expenditures on those two fronts is forecast to grow 5.2% per year through 2025.
According to Jewelry & Watches: United States, a report from Freedonia Focus Reports, increasing consumer disposable income is cited along with the rising number of new marriages as the reasons.
Omega Seamaster luxury watch
Some restrain in growth will come from a few factors: financial challenges among young people and consumer preference for big-ticket items like electronics and travel experiences. On the jewellery front, the report points to a sector bolstered by spending of stimulus payments from early in the year. Plus the expenditures on jewellery as weddings ramp back up.
The report projects a continued uptick in the number of new marriages beyond 2021, again spurring demand. Freedonia conducted a national online consumer survey of 2,000 individuals.
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Again, not a surprise, but consumer spending on smartwatches and fitness trackers is really expected to grow – 12% annually, as an aggregate. More industry players will push down prices, but people are extra focused now on health. Especially health at home, with gyms on the rise.
Personal spending on traditional and hybrid watches in nominal terms if forecast to increase 5% annually, reaching $17.5. billion in 2025. Gains in disposable personal income will support the purchase of watches, particularly the high-end variety, as wearable symbols of status and gifts for special occasions. Along these lines, “micro-brand” watches, often produced by small establishments, in small numbers, will continue to appeal to consumers seeking unique, in some cases a bespoke luxury watch.
The Freedonia Group is a division of MarketResearch.com and publishes over 20 new or updated Freedonia Focus Reports, typically 20-30 pages. They provide fresh and unbiased analysis on a wide variety of markets and industries.
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