The Shifting Sands of Time: A Deep Dive into the 2025 Swiss Watch Market Landscape
Understanding the Economic Headwinds Impacting the Swiss Watch Sector
Just days after the Vontobel Luxury Goods report, which outlined the top 10 watch brands for 2025 and analyzed recent industry shifts, Morgan Stanley and LuxeConsult have released their eagerly anticipated annual analysis. This comprehensive report meticulously tracks the evolution of the watch industry, offering rigorous estimates for the top 50 watch brands based on turnover and unit sales. Following record sales in 2023 and early signs of a downturn in 2024, the 2025 report underscores these trends, particularly highlighting the pronounced polarization within the market. This phenomenon, prevalent across many luxury sectors, shows the four leading brands capturing more than half of the total Swiss watch market.
Key Findings from the 2025 Swiss Watcher Report: A Market in Contraction
What are the pivotal insights from the 2025 Morgan Stanley x LuxeConsult report? Consistent with export figures from the Federation of the Swiss Watch Industry (FHS), the Swiss watch market is experiencing its second consecutive year of contraction. Exports have dipped by 1.7% in value, with the total retail market value now estimated at approximately CHF 49 billion (excluding VAT). Morgan Stanley's estimates place the global wholesale market for Swiss watches at around CHF 25.9 billion in 2025, closely aligning with the FHS's reported CHF 24.4 billion in exports. This marks a consistent decline in market value. More critically, the report indicates a dramatic reduction in industry volumes, more than halving since 2011. Over the last two decades, particularly since the 2008 recession, overall unit sales have fallen by 44%, and by 51% since their 2011 peak. While quartz watch volumes have been halved, mechanical watch exports have largely remained stable, suggesting a shift in consumer preference and market focus.
Analyzing the Top 50 Brands: A Tale of Two Markets
The report's focus on the estimated turnover and retail/wholesale values of the top 50 brands in 2025 reveals a bifurcated market. On one side, a handful of dominant players have significantly expanded their market share. On the other, the vast majority of brands are grappling with declining sales. This disparity underscores a deepening divide within the industry, where success is concentrated among a select few.
The Unyielding Reign of the Elite: Leaders in the Swiss Watch Landscape
The market continues to be firmly controlled by six major players: Rolex, Cartier, Audemars Piguet, Patek Philippe, Omega, and Richard Mille. Notably, four of these, Rolex, Audemars Piguet, Patek Philippe, and Richard Mille (often referred to as "The Big 4"), are privately owned and have shown remarkable resilience against market fluctuations, consistently outperforming despite economic uncertainties and geopolitical challenges. However, even their growth was somewhat restrained in 2025. For instance, Rolex proactively managed scarcity to uphold brand desirability, leading to a 2% dip in volumes to 1.1 million watches. This marks the first time in over two decades that Rolex has seen consecutive years of declining volumes, indicating even the giants are not entirely immune to market pressures.
Brands Navigating Turbulences: Challenges and Shifts in Ranking
A closer look at the detailed figures reveals that 2025 was particularly challenging for several brands. Ten of the top 50 brands, including Longines, Swatch, Hamilton, Blancpain, Breguet (all part of Swatch Group), Panerai, Roger Dubuis (Richemont), Zenith (LVMH), Girard-Perregaux, and Franck Muller, experienced turnover contractions of 15% or more. Omega, once the second-largest brand after Rolex, has slipped to fifth place due to both its own sales decline and the accelerated growth of its competitors. This highlights the intense competition and dynamic shifts within the industry's hierarchy.
The Ultra-Premium Shift: Driving Growth in a Contracting Market
The overarching theme is an increasingly polarized market. Despite approximately 450 watch brands operating in Switzerland, the top four brands collectively commanded over 50% of the market in 2025, an increase from 55% in 2024 and 52.4% in 2024. Furthermore, the exclusive "billionaires' club" (brands with revenues exceeding CHF 1 billion) has shrunk this year, with Longines exiting the group, following Vacheron Constantin's departure in 2024. A significant observation is the market's pronounced "ultra-premiumization." Watches priced above CHF 50,000, despite representing only 1.4% of total volumes, accounted for 37% of export value and contributed a staggering 89% of overall growth in 2025. This underscores the robust demand for high-end luxury, while the mid-tier segment, historically dominated by the Swatch Group, faces tougher conditions. Nevertheless, the Swatch Group remains a powerhouse in the entry- and mid-level segments, selling around 8.8 million watches in 2025, which constitutes about 60% of the Swiss watch industry's volume.
Independent Watchmakers on the Rise: Niche Success Stories
Amidst these broader trends, high-end independent watchmakers continue to flourish. Brands like F.P. Journe, H. Moser & Cie., and MB&F reportedly saw increased revenues in 2025. Notably, Christopher Ward has entered the top 50, marking a significant achievement as one of the few mid-range independent watchmakers to register value growth. These success stories demonstrate that innovation and distinctiveness can still carve out valuable niches in a challenging market. For more comprehensive details, readers can refer to the official reports from Morgan Stanley and LuxeConsult. All figures presented are estimates from LuxeConsult and Morgan Stanley Research and are not direct disclosures from the brands themselves.