The latest annual report from Francéclat highlights an improvement in the trade balance and a stable domestic market for the French jewelry and watchmaking sectors. However, mixed results across the various channels, the rise in the price of gold and potential tariffs on the US market are creating a climate of uncertainty that forces manufacturers to remain reactive.
An exploding gold price, a growing trade surplus, a luxury industry more dynamic than the mass market: these are some of the main lessons of the latest 2024 study by Francéclat, which every year provides and analyzes the key figures for the watchmaking and jewelry sectors in France.
Francéclat is the professional committee for economic development serving the watchmaking, jewelry and tableware sectors in France. Funded by the 14,000 companies in these sectors, its mission is to help them develop in France and around the world, promoting them and supporting them in their transformation.
Strong performance and growing contrasts
Its latest report thus provides “valuable insight into the evolution of production, international trade and domestic market consumption” for the French jewelry and watchmaking industry in 2024, a “year marked by strong performance, but also by growing contrasts within the industry,” explains Francéclat.
“A French industry with production exceeding 6 billion euros, exports soaring to over 11 billion euros, a positive trade balance of 2 billion euros and an internal market of 6 billion euros. This is an impressive performance in a turbulent landscape and a year of ups and downs. But a gap is widening within the sector, with production and the domestic market evolving at different rates,” said Hervé Buffet, CEO of Francéclat.
First lesson: French watchmaking and jewelry production continued to grow last year by 6%, thus crossing the 6 billion euro mark.
Although its growth rate has slowed down compared to previous years, the production of jewelry in France has thus increased by 6% to 5.7 million euros in 2024. This is a development that Francéclat considers “encouraging”, as is the increase in manufacturing staff (+2% to 12,000 people), with the emergence of new sites in Brittany, Pays de la Loire and New Aquitaine, alongside the traditional production regions (Paris, Auvergne-Rhône-Alpes, Bourgogne-Franche-Comté and Grand Est).
Watch manufacturers enjoying strong growth
The growth and volume of the watchmaking industry, up 3% to 423 million euros, are more modest. However, the performance of watch manufacturers, which are growing strongly (+15% to almost 100 million euros), is all the more welcomed by Francéclat in view of “the stability of components and bracelets” and the “commercial performance displayed by their mainly Swiss customers, and in domestic and technical timepieces”. The committee considers this progress “promising for the reindustrialization program currently underway in France”.
More specifically, in jewelry, activity is mixed, with a buoyant trend for high-end and a less favorable trend for the mass market. “Driven by the development of Place Vendôme establishments, overall French jewelry production” has thus “more than doubled between 2019 and 2024 and increased 3.3-fold over the last ten years”.
Precious jewelry on the rise, costume jewelry in decline
In 2024, the trend is confirmed with sales up 8% to 5 billion euros for jewelry made of precious metals, gold and silver. On the other hand, gold-plated jewelry plunges 18%, stones and pearls decline 4% and costume jewelry 2%.
Francéclat also observes “the formation of larger industrial units”. More than 70% of jewelry production is in fact carried out by companies with more than 20 employees, accounting for 57% of the sector’s total workforce. However, while their share of turnover is stable compared to 2019, the percentage of the workforce has increased by 4 points… The craft sector (companies with two employees) is also growing, with turnover and workforce up by 5% and 1% respectively. It thus accounts for 13.5% of total production and 26.5% of the total workforce.
A trade balance that is improving even further
In terms of foreign trade for both sectors as a whole, the news is also good, with a trade balance “that has improved even further to almost 2 billion euros” with “a positive coverage rate of 117%”.
In fact, there were “diametrically opposed trends” for exports and imports last year. Exports increased by 4% to 11.1 billion euros, while imports fell by the same amount to 9.4 billion euros!
Up to 8.4 billion euros, jewelry now accounts for three-quarters of exports. Precious jewelry, up 8%, is driving the sector.
In terms of destinations, Switzerland still accounts for 32% of total exports, “which reflects the close logistical links between France and its Swiss neighbor.” But the United States, up 20% to now 9% of total exports, has also been “extremely buoyant.” This should make those involved in the sector all the more attentive to the evolution of customs duties in this country in 2025, while China (down 3%) and Hong Kong (+6%), together accounting for 14% of total exports, are less dynamic than in the past.
A French market with ups and downs
The uncertainty, growing in exports, has also loomed over the French market with a rollercoaster year in 2024.
“The hopes of the first five months were dashed by the slump of the following four months, raising fears for the worst in the fourth quarter, a crucial period given the seasonal sales patterns of this market,” explains Francéclat. November turned out to be a successful month, fueled by the Black Friday sales. December, however, failed to follow suit and was even negative for many outlets.
However, after this trying year, the market ended slightly up (+1%), “stabilizing at a high level in value”, at 5.9 billion euros.
In terms of distribution channels, the winners were the specialist retailers, which “outperformed the overall market throughout the year”. Downtown watch, jewelry and goldsmith stores, including Place Vendôme, and department stores grew by 2%, watch specialists by 7%, while shopping centers recorded stable sales.
On the other hand, retail sales outside stores, both at generalist retailers and pure players, have reversed since the spring, with a 7% drop.
Gold prices soaring
Finally, Francéclat emphasizes that “the sharp rise in precious metal prices has a significant impact on the sector’s figures”, “however difficult to quantify”.
Market players cannot remain indifferent to the soaring price of gold (expressed in euros, it has increased by 50% since the beginning of 2021 and by a quarter since 2023!) and the price of silver, which, even if it “remains much more affordable – has almost doubled in the last five years”.
We must therefore adapt to the new situation. “The luxury sector is exploring new materials and new combinations, while the more affordable segments are promoting vermeil and even steel”.
Read also > The surge in the price of gold impacts the watchmaking and jewelry market
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