Editor’s Note
This report from France’s watchmaking and jewelry sector highlights a year of significant market volatility. Despite reaching a notable sales figure of nearly €6 billion in 2024, the industry faced a sharp reversal after a strong start, underscoring the profound impact of economic uncertainty and rising material costs.
Sales Performance and Market Uncertainty
Paris – Sales of watches and precious jewelry in France, impacted by rising metal prices, approached 6 billion euros in 2024, the watchmaking and jewelry sector announced on Thursday.
“Uncertainty was the defining feature throughout 2024,” notes Francéclat in this report, specifying: “After a favorable start over the first five months, a downturn occurred for four months, raising fears of the worst for the final quarter.”
“November proved to be a very good month, likely fueled by promotional efforts gathered under the Black Friday banner,” adds the report, and “in contrast, the month of December (…) was negative for many points of sale.”
Impact of Precious Metal Prices
According to Francéclat,
“the sharp increase in precious metal prices has a real impact on the sector’s figures, although it is difficult to quantify.”
“The price of gold – expressed in euros – has jumped 50% since the beginning of 2021, and by a quarter since 2023,” the report recalls, and “the price of silver – which remains much more affordable – has nearly doubled over the past five years.”
In recent days, gold has hit a new record, surpassing the $3,000 per ounce mark, with uncertainties stemming from trade wars and geopolitical tensions on economic activity contributing to pushing investors towards safe-haven assets, with gold leading the way.
Market Adaptation and Production Trends
For Francéclat,
“new avenues are thus opening up for all market players”: “luxury is exploring new materials and new combinations” and “more accessible segments are bringing vermeil or even steel back to the forefront.”
French production of watches and jewelry itself increased by 6% and surpassed 6 billion euros in revenue, driven by precious metal jewelry, gold and silver, which represent 5 billion euros in sales (+8%).
The report highlights that the
“French production of jewelry, anchored to the development of the houses on Place Vendôme in Paris,” has “more than doubled between 2019 and 2024 and has multiplied by 3.3 over the past 10 years.”
The year 2024 was less favorable for gold-plated items (-18%), stones and pearls (-4%), and fashion jewelry (-2%).