Deloitte Swiss Watch Industry Insights 2026: Spotlight on the supplier universe

Intro

Behind every Swiss watch stands a network, assembled over many generations and concentrated within a small geographical area, brings together the skills, know-how and industrial capabilities of the countless specialists needed to transform a design into a finished timepiece.

This spotlight explores the world of Swiss watchmaking suppliers, examining what makes it distinctive as well as the challenges it is now facing. It looks at the role of proximity and specialised know-how, the value of Swiss Made and how suppliers have been adapting to the global slowdown through consolidation, diversification and continued investment in skills, innovation, automation and new technologies.

About this study

This spotlight is based on a comprehensive assessment of diverse points of view. Deloitte’s 2026 research includes surveys of 42 executives from component manufacturers and suppliers and more than 6,500 consumers. The analysis draws on Deloitte's decade-long Swiss Watch Industry Study, providing insight into suppliers, watchmakers, industry organisations and other experts as well as broader market research.

Key Findings

Topics covered in the paper include:

The Swiss watch making ecosystem

Switzerland and watchmaking are almost inseparable, built over centuries. The arc horloger, or watch valley, stretching across Western Switzerland towards Schaffhausen.

The Swiss Watch Industry Employer’s Association (CP) reported that the watchmaking sector employed 64,807 people in 2025, which is equivalent to roughly 1% of the working population.

In 2025, Swiss watch exports reached CHF 25.2 billion, 9% of total export earnings (excluding gold).

The world of suppliers has undergone a process of disruption since the early 2000s that was initially difficult, but which has ultimately led to greater diversity and independence.

The concentration of these capabilities in a small area has become one of the industry’s defining competitive advantages

Access to a skilled workforce and Switzerland's vocational training and apprenticeship system was the element most frequently identified as contributing to company performance.

The Swiss watchmaking ecosystem amounts to far more than the sum of its individual companies. Its strength lies in the accumulation of skills and the dense concentration of complementary capabilities within a small area.

The Swiss Made label

Precision, quality and craftsmanship have become closely associated with Switzerland, giving the country’s name a value of its own. Protecting that value has therefore long been a priority in Switzerland.
 

The 60% requirement leaves uncertain how much of a watch is made in Switzerland above this figure, which applies to manufacturing costs, not to the retail price of the watch. Components can be sourced abroad as long as the watch head continues to meet the statutory requirements.

Other high-end independent watchmakers have adopted similar, though not identical, approaches. On certain models “Hand Made” label is used to emphasise the local craftsmanship involved in their production.

The proliferation of other seals of quality also reflects a wider reality, which is that although Swiss origin is a powerful indicator, countries, regions and brands are increasingly looking for additional ways to demonstrate what sits behind a timepiece.

The perception of the Swiss Made label also depends on where consumers are located.

In all markets surveyed, the most important factors were still price, design and brand image.

A new landscape

After years of strong activity, the industry has entered a period of declining volumes. In 2025, roughly 14.6 million wristwatches were exported, a 43% decline since 2016. But while the volume of watches sold may have decreased, the value generated by those exports has risen. This has also been accompanied by an expansion of the workforce. According to the CP, employment grew by 14% between 2016 and 2025, as companies added capacity to meet higher levels of activity.

Weaker foreign demand is the most frequently cited risk for the next 12 months. This is leading to restructuring in the industry.

The impact of inflation and weaker purchasing power is particularly relevant for aspirational purchases, where consumers are more sensitive to changes in disposable income and price, and helps to explain the disparity in performance in different segments: demand at the higher end is less price sensitive and more stable.

Geopolitical tensions are also considered a major concern by the watchmaking industry.

Environmental standards, chemical restrictions, product-design rules and supply-chain due diligence requirements are shaping not only which materials companies can use and where to source them from but also what information they must collect and what they need to demonstrate to customers and regulators. 

The ecosystem adaptation

One of the most widely used measures during the slowdown has been short-time working – réduction de l'horaire de travail (RHT).

According to our survey, 50% of respondents had to reduce their headcount, down from 57% in 2025, or / and reduce investment spending.

For independent manufacturers acquiring complementary capabilities can broaden the customer base via cross-selling, extend the product range and allow suppliers to move from manufacturing individual components towards delivering sub-assemblies or a wider range of services.

After an initial phase led largely by watch groups securing their manufacturing base, independent industrial players began regrouping to strengthen their position within the value chain.

Beyond mechanical innovations, suppliers are also experimenting with new materials and watchmaking techniques with the use of AI.