Japan Watch Market Sees Slight Decline Amid Luxury Demand

Japan's domestic watch market has seen a slight decline in 2025, according to Yano Research Institute. The market totalled 1.2919 trillion yen ($7.88 billion) in retail value, down 1.4% from the previous year's record-high level of 1.3104 trillion yen.

Despite this decrease, demand for luxury watches remains firm, with manufacturers shifting their focus towards higher-value offerings and premium positioning. Brands are also introducing more high-priced products and interest in mechanical watches and limited editions remains strong.

The market environment is entering a turning point due to inflation encouraging household thriftiness and changes in inbound tourism demand. However, Yano forecasts the domestic watch market will rise 2.9% from the previous year to 1.33 trillion yen in 2026.