Jewelry and watches are set for strong growth through the end of the decade amid a resurgence in China and a slowdown in inflation, Bain & Company said.

The personal luxury goods market is expected to reach between EUR 530 billion and EUR 570 billion (between $578.52 billion and $622.18 billion) by 2030, more than double its size in 2020, according to Bain’s luxury report, published last week in cooperation with Italian luxury industry association Altagamma.

“The luxury industry is experiencing a new phase after its post-pandemic growth, with renewed drivers of resilience establishing winners and losers,” said Claudia D’Arpizio, a partner at Bain and lead author of the study.

Consumers will be driven by a “quest for elevation” that will be fulfilled by “iconic and uber-lux” jewelry and watches, Bain noted. While a slowdown is expected in the US due to consumer caution around a potential recession, the reopening of mainland China and renewed tourism to Hong Kong will bolster sales of luxury goods.

So far this year, jewelry and watches have been “top performing” categories, as customers look to buy “less but better.” Meanwhile, the luxury-goods market will grow up to 12% year on year to between EUR 360 billion and EUR 380 billion (between $393.04 billion and $414.93 billion) in 2023, compared with a record EUR 345 billion ($376.70 billion) in 2022, Bain predicted.