Swiss Watch Exports Decline in May 2025 Despite a Stable Start to the Year

After a sharp surge in April, driven by short-term purchasing ahead of anticipated U.S. tariff adjustments, Swiss watch exports recorded a notable downturn in May. Figures released by the Federation of the Swiss Watch Industry show that total exports fell by 9.5 percent compared to May 2024, reaching CHF 2.1 billion. This marked the weakest monthly result so far in 2025.

Sharp Correction in the U.S. Market and Broader Global Softness

The decline was led by the United States, which had experienced a significant spike in April. In May, exports to the U.S. dropped by 25.3 percent, a predictable correction following the frontloading of shipments in anticipation of new trade measures.

Other key markets also reported contractions. Exports to China were down 17.4 percent, continuing a downward trend that began in late 2023, affected by lower consumer confidence and subdued domestic demand. Hong Kong saw a 12.6 percent decline, while the UK and Japan registered drops of 14.5 and 10.5 percent respectively.

Among the top twelve export markets, only the United Arab Emirates delivered growth in May, benefitting from increased regional tourism and continued high-end retail expansion, especially in Dubai.

Product Categories Show Broad-Based Weakness

By category, the decline was evident across nearly all product segments. Watches with precious metal cases were down by 9.0 percent, and those made of stainless steel decreased by 9.3 percent. Bimetallic models fared worse, slipping 12.6 percent, while timepieces in the “other metals” category dropped 13.6 percent.

The steepest decline was recorded in watches made from other materials — primarily ceramics and synthetics — which fell by 38.4 percent in volume, reflecting weaker interest in lower-priced or fashion-oriented segments.

Total unit exports in May dropped by 180,000 pieces compared to the same month in 2024. The volume decline reflects a broader trend of contraction in lower-value categories and increased consumer focus on selective, high-quality purchases.

Mid-Range Watches Offer Relative Stability

The only segment to demonstrate some resistance to the downturn was watches priced between CHF 500 and CHF 3,000. This category saw a slight increase in export value of 0.2 percent, although volumes declined by 4.3 percent. These figures suggest sustained demand in the upper mid-range, where customers continue to seek value alongside brand prestige.

Watches priced below CHF 200 posted significant declines in both volume and value, underlining ongoing pressure on entry-level Swiss products from smartwatches and fashion brands. In contrast, watches priced above CHF 3,000 fell in volume by more than 8 percent, indicating that even the high-end segment is facing increasing scrutiny from buyers.

Year-to-Date Figures Mask Growing Uncertainty

Despite May’s decline, cumulative exports for the first five months of 2025 totalled CHF 10.8 billion, representing a year-on-year increase of 1.1 percent. This moderate growth was driven by strong results in February and April, though the underlying trend remains fragile.

The current environment reflects a mix of macroeconomic caution, normalisation after post-pandemic rebound, and shifting consumer preferences. Inflationary pressures in key markets, currency volatility, and geopolitical tensions have all contributed to hesitancy among retailers and end customers alike.

While certain markets, such as the Middle East and India, offer long-term growth potential, traditional strongholds like China, Hong Kong, and parts of Europe appear to be entering a more cautious phase. Brands are responding by adjusting inventories, slowing shipments, and refining product portfolios toward more resilient segments.