As we enter mid-2025, consumer spending patterns have evolved significantly, reshaping how jewellers must approach the market. According to the latest Statistics Canada Household Spending Report, the average Canadian household expenditure continues to rise, reaching a new high. However, beneath this headline, profound shifts in consumer priorities demand careful navigation.
The Reality of Household Spending in 2025
In 2025, Canadian households spent an average of nearly $81,000 annually, up approximately 6% from 2023. Yet, this increase primarily reflects inflationary pressures rather than genuine spending power. Essential costs—particularly housing, food, and transportation—now consume a greater share of household budgets than ever before, tightening discretionary funds.
Shelter remains the largest expense category, accounting for roughly one-third of total household spending. Mortgage payments surged another 12% since 2023, reflecting high interest rates and housing shortages. Renters face a similar squeeze, with average rental costs up by nearly 11%. Meanwhile, food expenses have risen by approximately 9%, driven by persistent grocery inflation.
Essentials Continue to Limit Discretionary Spending
This persistent rise in essentials is notably constraining discretionary budgets. You should acknowledge that many Canadians, particularly middle-income households, will remain cautious, often opting to delay larger discretionary purchases or trade down to more affordable options.
Yet, the news isn’t entirely restrictive. Consumers are finding ways to reallocate their limited discretionary funds, focusing increasingly on experiences and social engagements, which presents fresh opportunities for innovative jewellers.
Travel and entertainment sectors have robustly rebounded, significantly outpacing pre-pandemic benchmarks. Spending on transportation surged, notably air travel, which increased by an extraordinary 30% between 2023 and 2025, reflecting Canadians’ pent-up demand for leisure and exploration. Restaurant and entertainment spending also grew by 18%, driven by the collective enthusiasm for renewed social connections.
For jewellers, this experiential shift is particularly relevant. Consumers increasingly purchase jewellery to commemorate experiences such as trips, anniversaries, milestone celebrations, or simply to elevate their social outings. You might leverage this trend by offering travel-themed collections or accessories tailored explicitly for vacation or special-occasion wear.
A Return to Fashion and Personal Indulgence
Canadians have simultaneously renewed their interest in fashion, beauty, and personal indulgence, despite budgetary pressures. Clothing and accessory spending rose by 14% from 2023 to 2025, highlighting a desire for self-expression and individuality amid social resurgence. Likewise, personal care and wellness spending climbed by nearly 20%, indicating a heightened consumer willingness to invest in self-care and appearance.
This renewed fashion and personal indulgence appetite opens avenues for jewellers to promote jewellery as essential accessories that complete personal style. Young adults and higher-income households particularly lead this spending category, suggesting targeted marketing to these demographics could yield strong results.
Strategic Recommendations
To effectively capture and retain consumer interest amid these evolving spending patterns, you should adopt the following strategic approaches:
1. Diverse Product Offerings
Provide tiered collections appealing across budget spectrums. Introduce affordable luxury items that maintain high-quality design elements yet remain accessible, such as minimalist gold jewellery or smaller gemstone pieces. Simultaneously, premium offerings targeting affluent consumers should emphasize exclusivity and craftsmanship.
2. Emphasize Jewellery for Life’s Milestones
Given the boom in experiential spending, jewellers should position their products as integral to significant life moments. Marketing campaigns could promote jewellery as perfect travel companions, anniversary keepsakes, or must-have accessories for special occasions.
3. Flexible Pricing and Financing
Economic pressures demand flexible purchasing solutions. Offering tailored financing, layaway plans, or buy-now-pay-later options can significantly ease customers’ purchasing decisions, especially for larger-ticket items.
4. Digital and Omnichannel Excellence
The blended shopping habits of Canadians necessitate a seamless online-to-offline experience. Invest in sophisticated e-commerce tools such as virtual try-ons, enhanced product visualization, and streamlined checkout processes. Pair this digital convenience with personalized, immersive in-store experiences to enhance customer satisfaction.
5. Personalization and Customization
Capitalizing on consumers’ desire for individual expression, personalized or custom-designed jewellery options can substantially increase consumer engagement. Bespoke design services, custom engraving, or unique gemstone selections can differentiate your brand significantly.
6. Sustainability as a Core Value
Sustainability remains a compelling consumer expectation. Jewellery businesses should transparently communicate eco-friendly practices, ethical sourcing, and socially responsible initiatives. Positioning sustainability prominently in brand messaging will resonate strongly, particularly with younger generations.
7. Targeted Marketing for Diverse Audiences
Clearly segment marketing efforts to match the preferences of distinct demographic groups. Affluent consumers might respond well to exclusive previews and private shopping experiences, while broader audiences could be engaged via value-driven promotions and community-focused campaigns.
8. Community Involvement and Local Engagement
Deepening local community ties can strengthen customer loyalty and enhance brand visibility. Participating in community events, partnering with local businesses, or supporting charitable initiatives helps embed jewellers firmly within local communities.
9. Continuous Market Monitoring and Agility
Regularly reviewing consumer spending data and market dynamics is crucial. Jewellers must remain agile, prepared to adjust strategies swiftly based on real-time consumer insights and economic indicators.
Navigating the Jewellery Market in 2025 and Beyond
As Canadian jewellers navigate the shifting spending landscape of 2025, aligning strategies to consumers’ evolving priorities will prove essential. Though discretionary budgets may feel constrained, opportunities to leverage renewed enthusiasm for experiences, fashion, and personal indulgence remain abundant.
By adapting product offerings, marketing messages, and customer experiences to match current realities, jewellers can effectively capture consumer spending, securing sustained growth in this dynamic economic environment.
Sources: Statistics Canada, Household Spending Survey 2025; RBC Consumer Spending Tracker (2025); Retail Insider Canada (Jewellery Industry Insights).
