The Russian market for jewelry and watches saw modest growth in the past few years, with a significant decline in revenues in 2020. However, the market recovered in 2021 with strong double-digit growth, and healthy growth is expected in the remaining forecast period of 2021-2026, with particularly strong growth in 2023 and 2024.

The jewelry and watches retail market is largely based on discretionary consumer spending and is very sensitive to changes in consumers’ disposable income and confidence. The market saw strong growth in 2021 due to economic recovery, the opening of physical stores, and the removal of export restrictions.

The Russian jewelry and watches market grew in value by 27% in 2021 compared to 2020, while the volume grew by only 4%. The increase in prices in jewelry retail in 2021 by 22% compared to the previous year and by 45% against 2019 led to an increase in sales of silver jewelry but prevented a full recovery in the market.

The Russian market for jewelry and watches had total revenues of $4,962.0 million in 2021, with a compound annual growth rate (CAGR) of 0.3% between 2017 and 2021.  

The COVID-19 pandemic had a significant impact on the market in 2020, with revenues declining by 18.9% in retail stores. However, significant growth was experienced through online channels, and the e-commerce share in jewelry retail increased to 17% in 2021.

The jewelry and watches segment was the most lucrative in 2021, with 60% of the market’s overall value, while accessories contributed 40% of the market’s aggregate value.

The market is expected to accelerate with an anticipated CAGR of 6.2% between 2021 and 2026, which will drive the market to a value of $6,710.8 million by the end of 2026. The Czech and Polish markets are expected to grow with CAGRs of 6.1% and 6.6% respectively, over the same period.

Factors such as the lingering effect of COVID-19 in key trade areas, supply chain disruptions, unemployment rate, and macro or governmental influences on consumers’ ability to spend will have a strong effect on future market growth. As the COVID-19 pandemic subsides, consumer discretionary spending will shift to experience-oriented services, and that will decelerate market growth in 2022. Additionally, the Russia-Ukraine conflict, trade embargo, rising inflation, and increasing energy prices may also hamper economic growth in Russia.