The Sparkle in the Slump: Why Luxury Jewelry is the Fashion World's Brightest Spot Moving Into 2026
Last year was a challenging one for the global luxury fashion market, marked by a noticeable slump driven by economic uncertainty and shifting consumer sentiments. Looking to the year ahead, McKinsey and Business of Fashion predict within the The State of Fashion Report 2026 a cautious recovery, with the global fashion industry once again posting low single-digit growth in 2026.
However, amidst the general slowdown, one category sparkled and is expected to continue to shine: jewelry.
The Three Pillars of Jewelry's Triumph
Category projections estimate that between 2025 and 2028, jewelry is set to record an impressive annual unit growth of 4.1 percent—a rate that is four times that of clothing. This performance is driven by a surge in three core consumer motivations: a desire for long-lasting investments, self-expression, and treating themselves.
1. The Long-Lasting Investment
In an uncertain economic climate, consumers are prioritizing quality and longevity over fast fashion. Jewelry, particularly fine pieces, is seen as a tangible asset that retains its value, offering a sense of security and a lasting heirloom. This mentality shifts the purchase from an expenditure to a sensible, emotional investment. Diamonds, particularly lab grown diamonds are having their moment as they offer a cheaper alternative to their mined counterparts, making them ideal for customers who want to wear them as an everyday luxury vs. wearing them for special occasions and customers who are committed to sustainability.
2. The Power of Self-Love and 'Treating Myself'
The act of gifting is no longer reserved for others. Consumers are increasingly buying luxury items as a form of self-love and personal reward. In fact, McKinsey cites that 42% of women and 35 percent of men report buying more jewelry for themselves than they did just two or three years ago. This idea was beautifully woven into the core messaging of Tiffany & Co's recent Holiday ad featuring Anya Taylor Joy, which centered on the idea that "love is a gift"— with the specific lens that gifting yourself Tiffany & Co is the ultimate act of self-love.
3. Defining Personal Style Through Self-Expression
It’s no secret that accessories are an excellent, and often more cost-efficient, way to inject personality into an everyday outfit. For jewelry, this sentiment is particularly strong: a whopping 71% of consumers say jewelry is how they express their personality.
The desire for individuality is powerful, and it brings to mind a memory from my own past. The other night, I pulled out a Juicy Couture Charm bracelet my mother gifted to me back in middle school. Why I loved that charm bracelet as a pre-teen was its inherent ability to be decorated with charms that reflected my interests and parts of my budding personality.
It is this very idea of customization and personalization that the experts at McKinsey recommend to fashion brands. Incorporating such customizable elements into product lines can further entice customers who are driven to purchase for the sole basis of adding a unique touch of individuality into their wardrobe.
The Takeaway
While the broader fashion world navigates a period of low growth, the luxury jewelry category has found its footing by tapping into deep-seated consumer needs for investment, self-reward, and personal expression. For brands looking to thrive in the years ahead, understanding and catering to the desire for lasting, personal, and customizable luxury will be key to capturing the growing consumer base.