BVSU: German jewelry and watch industry in 2025 – Between impressive statistics and genuine pressure to adapt
Strong export figures are offset by high raw material prices, subdued consumption, and growing structural requirements. This is the summary of the 2025 economic report published by the German Federal Association of Jewelry, Watches, Silverware, and Related Industries (BVSU): statistics and market reality do not always tell the same story.
The BVSU’s 2025 economic report paints a contradictory picture for the German jewelry and watch industry: good export and import figures make for impressive statistics, but only partially reflect strong demand. The main driver of growth in euros is the sharp rise in precious metal prices – gold has risen by around 80 percent since the Covid crisis and silver by around 40 percent – which increases inventory values, financing costs, and margin pressure.
The industry faces structural challenges, not just economic ones: geopolitical uncertainties, volatile commodity markets, increasing regulatory requirements (transparency, due diligence, sustainability), changing consumer behavior, and accelerated brand building via social media. Consumption continues, but is more selective and conscious—especially for high-priced products. Trust, origin, and clear communication are becoming increasingly important.
In foreign trade, the watch industry performed well with export sales of €1.995 billion (+5.9%). The jewelry industry recorded significant growth (+21.1%) with exports totaling €6.913 billion, although this was largely driven by prices. The increases were more moderate for finished jewelry.
Precious metal prices distort statistics
Overall, it can be said that the figures are “brilliant” in euro terms, but they have a “bitter aftertaste” because high precious metal prices distort the statistics, according to the BVSU. Rising inventory values also generate follow-up costs in terms of financing, insurance premiums, and warehousing.
The mood in many companies is worse than foreign trade figures would suggest. Raw materials as a strategic factor In practice, 2025 has made many companies realize that metal volatility should no longer be treated as a short-term disruption, but as a permanent management task: pricing, costing, inventory strategy, hedging/risk management, purchasing times, product design (weights, alloys, modular constructions), and, last but not least, communication at the point of sale and in B2B sales.
Diamonds 2025: Clear roles, less ideology
A functional division is establishing itself in the diamond segment: synthetic stones are gaining importance in the entry-level and mid-price segments, while natural diamonds remain in demand in the high-end segment as rare, stable-value goods. Clear and transparent communication with customers is crucial.
Conclusion: 2025 was a reality check
“The industry faces the challenge of dealing with volatility, price pressure, and increasing demands on a permanent basis,” says Guido Grohmann. “The decisive factor will be how well companies succeed in combining pricing logic, product positioning, and transparent communication.”
“2025 was not a year of easy answers.”
Guido Grohmann, Chief Executive Officer of the BVSU.
BVSU President Uwe Staib adds: “At first glance, the foreign trade figures paint a strong picture. In the operational reality of many companies, however, they primarily reflect the high price level of precious metals – not necessarily a correspondingly strong demand. This makes it all the more important to read the statistics and market perception together and draw the right strategic conclusions from them.”
BVSU advises sobriety
“That is precisely why the most important lesson from 2025 is neither optimism nor pessimism, but sobriety: anyone who wants to be successful in 2026 and beyond needs robust pricing and inventory logic, clear positioning, compelling stories that go beyond pure material values, and the ability to integrate transparency and technology issues in a way that strengthens trust rather than increasing complexity.”
