According to The Business Research Company’s Luxury Watch Global Market Report 2023, the global luxury watch market value is projected to grow from $30.5 billion in 2022 to $34.1 billion in 2023 at a compound annual growth rate (CAGR) of more than 11%. The luxury watch industry revenue is then expected to grow to $49.6 billion in 2027 at a CAGR of more than 9%.
The Canadian market, as part of the North American region, is expected to contribute significantly to this growth. Factors such as increasing urbanization, the rising use of internet and social media platforms, and the increasing export of Swiss watches are expected to drive the luxury watch industry growth rate.
Swiss watch exports have been a significant driver of the luxury watch market growth. According to the Federation of the Swiss Watch Industry (FH), Swiss watch exports increased by 11.4% in 2022 to reach CHF24.8 billion ($27.4 billion), outpacing their performance in 2021. The quantity of wristwatch items increased by 50,000 (+0.3%) from the prior year to 15.8 million.
Swiss watch companies are focusing on new technologies and developing new product solutions to strengthen their position in the market. For example, in January 2023, Omega, a Switzerland-based luxury watch manufacturer, launched the new Spirate System, a technology that promises 0/+2 second accuracy per day.
In the Canadian market, these Swiss watches are highly sought after, contributing to the growth of the luxury watch market. The Canadian consumer’s preference for luxury watches, particularly Swiss-made, is influenced by factors such as brand reputation, quality, and craftsmanship, which these watches represent.
Comparatively, the European market, with its rich history of watchmaking and high concentration of luxury watch manufacturers, continues to be a significant player in the global luxury watch market. However, the Asian market, particularly China, is rapidly growing due to increasing consumer wealth and appreciation for luxury goods.
In conclusion, the luxury watch market is poised for significant growth in the coming years, with the Canadian market expected to contribute substantially to this growth. The increasing export of Swiss watches, coupled with the rising use of internet and social media platforms, will continue to drive the luxury watch industry’s growth rate.
Stay tuned to Canadian Jeweller Magazine for more insights into the Canadian jewellery industry, including market trends, business strategies, and product showcases.