rethink sustainability
Luxury watches and high-end jewellery undergo sustainability transformation – Piaget leads the way
In 2024, the total market value of the luxury sector was estimated at EUR 1.48 trillion, marking a fall of around 1% on 2023.1 After two years of spectacular growth, many in the industry had expected 2024 to be a year of consolidation, largely due to geopolitical tensions and macroeconomic uncertainty.
Despite these short-term headwinds, the luxury market remains robust, and 2025 is set to show a return to solid growth, with the sector forecast to reach a value of between EUR 2 and EUR 2.5 trillion by 2030.2 This success comes at a cost to the planet, however: globally, the luxury sector is responsible for 20% of industrial water pollution and 6% of greenhouse gas emissions
Industry leaders are responding, recognising the need to reduce their environmental impact. But what progress has been made? And how do brands balance sustainability objectives with growth? For groups like LVMH, Kering, and Richemont-owned Piaget, sustainability is no longer an ‘add-on’ – it’s a core pillar of brand loyalty and long-term business strategy.
Luxury in the face of new challenges
Several macro trends are reshaping the luxury sector. Where growth had previously been spurred by China, a slowdown in luxury spending by both Chinese tourists and mainland buyers saw the country fall to fourth place globally in 2024, with a decline of 20-22% compared to 2023. Meanwhile, Europe retained its spot as the leading luxury consumer, and Japan emerged as a growth champion, seeing sales rise by 12%.4
In addition to this shifting regional economic landscape, firms today are facing a new challenge, explains Gosia Eggimann, Lombard Odier Buy-side analyst, Consumer goods. A generational shift in spending power means that, by the end of 2025, Millennials and Generation Z will account for 45% of the global personal luxury market5. “First of all, firms must keep the growth going by maintaining exclusivity, while also attracting new customers,” Eggimann says, noting the importance of connecting with a growing audience on social networks such as Instagram and TikTok.
Read also: ID Geneva transforms luxury watchmaking through circular economy
The ‘Insta-effect’ does not mean a lack of sophistication, however. In the luxury watches sector, for instance, which held steady at a value of USD 46 billion in 20246 [note: Switzerland continued its sector-dominance with CHF 26 billion in exports7], Eggimann says, “Luxury watchmaking is attracting a more sophisticated clientele with deep technical knowledge.”
Christophe Bourrié, Global High Jewellery & High-End Watchmaking Director at Swiss luxury jeweller and watch-maker Piaget, agrees: “Today, our clients are true experts. They know our competitors and our creations intimately.”
Read also: How US trade policy is reshaping the global order | Lombard Odier
For traditional brands such as Piaget, the social media landscape has become a priority, a place to build relationships with new consumers. The generational shift is also prompting brands to secure loyalty with younger consumers by embracing sustainability. Here, Piaget stands out. Though the firm celebrated its 150th anniversary in 2024, it continues to innovate – attracting a new, more demanding clientele, while paying close attention to the environmental impact of its materials and business processes.
Reconciling growth with sustainability
In the luxury sector, transparent and sustainable manufacturing processes and supply chains are becoming increasingly important. “Traceability has always been at the heart of the luxury sector, today we are putting even more emphasis on these efforts,” explains Christophe Bourrié.
As part of this focus, Piaget is a trustee member of the Responsible Jewellery Council (RJC), a global organisation that sets high standards of traceability and product durability within the luxury jewellery and watchmaking industries. The RJC now includes more than 1,800 businesses spanning the entire supply chain, from mining to retail.
Read also: Chopard, the jeweller who embarked on a “Journey to Sustainable Luxury”
Regulators and consumers call for sustainability
For luxury brands, sustainability is no longer optional. New regulations are pushing brands to disclose more about the materials they use and the working conditions of their suppliers. Mining, in particular, has come under scrutiny. Extracting just one gram of gold requires, on average, 750 litres of water8, while the mercury and cyanide needed for its extraction often contaminate local freshwater sources.
Faced with this reputational risk, luxury firms such as Chopard and Piaget have committed to following the most up-to-date, sustainable and socially ethical mining processes. LVMH has committed to ensuring that, by 2026, 100% of its strategic raw materials are certified as sustainably sourced.
Where possible, the industry is moving away from mining altogether. Recycled gold, which is significantly less water- and energy-intensive, is gaining traction. In 2024, gold recycling increased by 11% to 1,368 tons.9 Since 2022, luxury brand Prada’s High Jewellery collection “Eternal Gold” has used only 100% certified recycled and traceable gold, underscoring the firm’s commitment to more sustainable practices.
These shifts are also driven by consumer demand. In 2023, a McKinsey study found that 65% of consumers are willing to pay more for products that meet high sustainability standards10, a shift which is reshaping the luxury landscape.
Read also:Tomorrow’s mine: the case for investing in an urgent mining revolution
A sector in transition
The luxury sector has long been criticised for its environmental impact, but, with consumers becoming more conscious of the power of their spending, the narrative is changing. Far from being environmental laggards, the jewellery and watchmaking sectors are now leading the charge towards more sustainable practices.
The convergence of stricter regulations, innovations in alternative materials and transparent supply chains, and reputational risk, shows that sustainability is no longer an option. Instead, firms are recognising that their long-term success depends on aligning with a new, sustainable economic model. The luxury sector is not only adapting to this shift – it is helping to lead it, as we transition towards an economy that is net zero, nature-positive, socially constructive and digitally enabled.
1 Luxury Report 2024: Rebuilding the Foundations of Luxury | Bain & Company
2 Idem
3 Fast fashion: ‘We aren’t doing enough to fix the problem’
4 Idem
5 bain20media20pack_the_millennial_state_of_mind.pdf
6 Global Luxury Watches Market Size, Trends, Share 2033 - CMI
7 FH - Swiss watch exports in 2024
8 Gold Water Benchmarking
9 Global gold supply to rise by 1% this year, report shows
10 Research: ESG strategies and commitments from McKinsey | Traliant
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
Read more.
share.