Europe Luxury Goods Market Report and Forecast 2024-2032

Europe Luxury Goods Market Size

The Europe luxury goods market reached USD 113.38 billion in 2023. The market is expected to grow at a CAGR of 3.8% between 2024 and 2032, reaching USD 158.33 billion by 2032.

Europe Luxury Goods Market Outlook

• As per the World Bank, income share held by the highest 10% in France, Italy and the UK in 2022 was 24.9%, 26.2% and 25% respectively.

• As per the Federal Statistical Office, in Germany, approximately 27,400 taxpayers had an income of one million euros or more.

• As per the Office for National Statistics, in 2020, average annual gross income for all individuals in the top percentile was GBP 655,553 in UK.

Europe Luxury Goods Market Growth

The Europe luxury goods market growth is boosted by the different distribution channels that are available in the form of luxury malls and boutiques as offline channels.

Offline distribution channels carry opulence, affluence and the idea of being exclusive, these comprise boutique stores along prestigious streets, department stores that showcase a diverse range of high-end products, and luxury malls that offer curated selections. These offline avenues evoke a sense of tradition and heritage and appeal to consumers seeking sophistication in their shopping experiences.

Brands in the luxury goods market are constantly competing for market share owing to a steady rise in industry activity owing to many mergers and acquisitions. In August 2023 two major luxury goods brands Coach and Versace merged. In January 2021 LVMH completed the acquisition of Tiffany & Co. for USD 16.2 billion.

On the other hand, online distribution channels act as dynamic platforms reshaping the Europe luxury goods market. Luxury brands offer convenience and global access to their products via brand websites, marketplaces, and social media platforms, engaging with consumers in new and innovative ways. The digital sphere also provides opportunities for customer engagement, reflecting the evolving preferences and behaviours of luxury shoppers.

Europe Luxury Goods Market Segmentation

Europe Luxury Goods Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Watches and Jewellery

• Perfumes and Cosmetics

• Clothing

• Bags/Purse

• Others

Market Breakup by End Use

• Women

• Men

Market Breakup by Distribution Channel

• Offline

• Online

Market Breakup by Country

• Germany

• United Kingdom

• France

• Italy

• Others

Europe Luxury Goods Market Share

Watches and jewellery lead the luxury goods market in Europe, they are the quintessential luxury items that hold aesthetic, symbolic and sentimental value representing premium craftsmanship, prestige and luxury. High-end watch brands like Rolex and Audemars Piguet are highly coveted investment-worthy accessories with high resale value and are often associated with tradition and heritage.

Leading Companies in the Europe Luxury Goods Market

The report provides a detailed analysis of the following key players in the market, covering their competitive landscape and the latest developments like mergers and acquisitions, investments, and capacity expansion.

• Chanel Limited

• Kering SA

• Rolex SA

• Hermès International S.A.

• Giorgio Armani S.p.A.

• Ralph Lauren Corporation

• Compagnie Financière Richemont SA

• Prada SpA

• VALENTINO S.p.A.

• Tiffany & Co.

• Others

Growing outreach by major market players is largely due to the rise in digitalization and e-commerce with more consumers turning to online channels. Personalization and customization also drive customer loyalty and engagement in the industry.

Key Highlights of the Report