The Swiss watchmaking sector, renowned for its precision and luxury, encountered a notable slowdown in 2025, signaling a shift from its recent trajectory of unprecedented growth. After achieving historic export levels from 2021 to 2023, the industry saw a 1.7% contraction, bringing total exports down to CHF 25.5 billion. This downturn, primarily felt across its major markets, reflects a complex interplay of global economic headwinds and changing market dynamics. Despite a positive rebound in December, which saw a 3.3% increase in exports after months of decline, the overall annual figures paint a picture of an industry navigating challenging times, grappling with reduced demand in China due to economic uncertainties and a stronger yen impacting sales in Japan, alongside the fluctuating effects of U.S. tariffs.
A deeper look into the statistics reveals critical insights into the industry's health, distinguishing between export volumes and actual retail sales. While total export value decreased by 1.7%, the volume of wristwatches exported saw an even steeper decline of 4.8%, highlighting a continuous increase in the average price per unit. The luxury segment, comprising watches priced over CHF 3,000, contributed significantly to the overall decline with a 1.9% decrease, indicating that even the high-end market is not immune to these pressures. Geographically, major markets such as China and Hong Kong experienced significant contractions of 12% and 6.5% respectively, further exacerbated by a 5.8% drop in exports to Japan. Conversely, some markets, notably Saudi Arabia and India, demonstrated resilience and growth, with exports increasing by 9% and 8.9% respectively, showcasing the burgeoning luxury markets in these regions.
Looking ahead to 2026, the outlook for the Swiss watch industry remains cautious. The Federation of the Swiss Watch Industry anticipates continued uncertainty, influenced by factors such as the strength of the Swiss franc, persistent inflation, and geopolitical instabilities. The industry is also confronting the dual challenge of adapting to evolving consumer preferences and engaging a new generation of buyers. Hopes for recovery are tied to a more stable trade environment with the U.S. and a gradual economic revival in China, evidenced by positive sales figures from major Chinese retailers. Furthermore, a rebound in secondary market prices for luxury watches, which rose by 4.9% in 2025, offers a glimmer of optimism for the sector's future. The industry's ability to innovate and strategically navigate these global complexities will be paramount in shaping its trajectory in the coming years.
In the face of economic fluctuations and evolving global landscapes, the Swiss watch industry, a symbol of enduring craftsmanship and luxury, is called upon to embrace adaptability and foresight. This period of contraction serves not as a deterrent but as an impetus for innovation, sustainable practices, and a renewed focus on market diversification. By strategically addressing current challenges and leveraging emerging opportunities in dynamic markets, the industry can reaffirm its timeless appeal, inspiring renewed confidence and pioneering a resilient path forward in the global luxury sector.