Why Jewelry May Become Fashion’s Fastest-Growing Category

Jewelry has “defied the luxury slowdown” and is poised to be the fasting-growing business within fashion during the next few years, according to a new report on “The State of Fashion 2026,” from consultancy McKinsey & Co. and website The Business of Fashion (BoF).

“This momentum reflects jewelry’s unique role as both an emotional and financial value store,” the report said. “When asked to compare categories for their investment potential, consumers rank jewelry tops—15 percentage points higher than handbags and other accessories.”

Both the costume and fine jewelry sectors will see sales gains above 5% in coming years, predicted the report.

Growth will be driven largely by branded jewelry, which analysts said now comprises 25% of the market. Brand jewelry sales grew 8.3% a year between 2021 and 2024, far outpacing the nonbranded segment, according to the report.

Researchers also found that self-purchasing has become a huge opportunity for the jewelry industry, with sales of jewelry “self-gifts” growing 58% since 2021.

The self-purchase craze will boost branded products in particular, according to the study’s authors. “Unlike unbranded pieces, branded jewelry often carries its own iconography and symbolic language—a shorthand for identity,” they wrote.

And while men’s jewelry is still a small part of the market, that segment’s growth (7%-8% a year) will likely outstrip that of women’s jewelry (4%-5%), said the report.

It recommended that jewelers adopt “modular, minimalist, and sculptural designs that transcend traditional gender categories. This may also involve reducing gendered product segmentation—both in-store and online—and marketing existing pieces as universal.”

The report also predicted that lab-grown diamond sales will continue to rise, with annual growth in the years ahead of 15.6%, fueled by increased sales in the United States, India, and China. Lab-grown currently accounts for nearly 20% of global diamond jewelry sales, and that number could reach 50% by 2030, the study said.

McKinsey and BoF said that overall diamond sales will rise 4%-5% a year over the next few years, but didn’t provide a specific estimate for natural diamonds.

Retailers and brands “should define a clear approach” to lab-growns and “clearly differentiate marketing between natural and lab-grown diamonds to emphasize distinct value propositions,” the report advised.

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