Global Luxury Goods Market Outlook Report - Market Size, Share Analysis and Forecast (2024-2032)

Global Luxury Goods Market Size

The global luxury goods market reached a value of around USD 346.19 billion in 2023. The market is projected to grow in the forecast period of 2024-2032 at a CAGR of 4.4% to reach USD 510.06 billion by 2032.

Luxury Goods Industry Overview

• Key trends shaping the market include continued emphasis on manufacturer-owned retail, a shift of sales from established core markets to emerging markets (such as Greater China), and the increasing role of eCommerce channels.

• The market is driven by generational trends, with millennials and Gen Z being the main consumers.

• Some of the major players in the market are Louis Vuitton Malletier, Guccio Gucci S.p.A., Chanel Limited, Hermès International S.A., Cartier SA, and Christian Dior Couture.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Luxury Goods Market Growth Rate

Luxury goods are defined as non-essential but desirable products within a culture or society. The demand for luxury goods fluctuates according to the income of consumers. Luxury goods like Rolex watches, high-end perfumes, or Louis Vuitton handbags are expensive but are known to boost the comfort of consumers and offer premium experience.

The growing global demand for various kinds of luxury goods such as bags, handbags, and clothing items, to enhance presentability is driving the luxury goods market growth. Increasing disposable incomes and rising affluence, particularly among the elite households with annual incomes exceeding Rs 20 lakh, have driven demand for premium and luxury products across categories such as cosmetics, electronics, and leisure travel.

Key Trends and Developments

Digital innovation, emphasis on ESG practises, and adoption of omnichannel strategies are influencing the luxury goods market development

August 2023

Tapestry acquired Capri Holdings, home to iconic brands Jimmy Choo, Michael Kors, and Versace, in a deal worth USD 8.5 billion. Tapestry, which owns luxury brands like Coach, Kate Spade, and Stuart Weitzman, expects to close the deal in 2024, creating an American fashion giant better positioned to compete in the market.

April 2021

LVMH, Richemont, and Prada Group partnered to develop a platform called the Aura Blockchain Consortium.34, which will allow consumers to access and view the product history starting from its sourcing to sales, establishing the authenticity of luxury goods. Such technological innovations are expected to enhance the luxury goods market size.

March 2021

Hermès unveiled a new edition of its classic luxury piece, Victoria travel bag, primarily made using lab-grown mycelium called as Sylvania- a hybrid of nature and biotechnology. The bag was originally crafted using calfskin and lined in canvas, but the focus was shifted to utilising sustainable production methods, such as using mushroom leather.

Focus on digital transformation

Brands like Burberry have embraced digital innovation by launching virtual stores and immersive online experiences, enhancing customer engagement and driving sales growth and enhanced audience reach.

Growing emphasis on environmental, social, and corporate governance (ESG) practices

Luxury brands such as Stella McCartney have set the standard for sustainability by using eco-friendly materials and promoting ethical manufacturing processes. Consumers, particularly younger generations, are increasingly demanding that luxury brands adopt sustainable and ethical business practices.

Evolving consumer preferences

The market is witnessing a shift in consumer preferences, where shoppers are seeking products and services that cater to their physical, emotional, and spiritual well-being, rather than just status symbols. Brands are collaborating with artists and streetwear labels and diversifying their portfolios to appeal to a wider range of consumers.

Shift to omnichannel strategies

The pandemic has accelerated the need for luxury brands to adopt robust omnichannel strategies and integrate their online and offline channels. Gucci have successfully implemented omnichannel strategies by offering online exclusives and in-store pick-up options.

Luxury Goods Market Trends

The growing awareness among consumers about leading luxury goods market share, coupled with their growing penetration, is expected to aid the luxury goods market expansion in the forecast period. Additionally, the rise of female entrepreneurs and the growing empowerment of women in business are reshaping the retail landscape and creating new opportunities.

Technological advancements and the adoption of artificial intelligence and analytics by retailers are also enabling them to better cater to evolving consumer preferences and capitalise on emerging trends. Furthermore, government initiatives such as the Production Linked Incentive (PLI) scheme and the PM Mega Integrated Textile Region and Apparel (MITRA) parks are expected to boost the long-term growth prospects of the retail industry in India.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Luxury Goods Industry Segmentation

The EMR’s report titled “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 User

• Women

• Men

Market Breakup by Distribution Channel

• Offline

• Online

Market Breakup by Region

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• Middle East and Africa

Luxury Goods Market Share

Offline channels dominate the market share as it facilitates better decision making by offering sensory shopping experience

Offline sales account for the majority of total luxury brands market share revenue as it provides the convenience of hands-on experience to customers, which allows them to feel, touch, and sense the product of their choice. This helps enhance the decision-making of consumers.

Meanwhile, online channel has experienced significant growth, especially in the wake of the pandemic, which accelerated the shift towards online shopping due to the convenience and accessibility they offer to consumers. Online stores allowing customers to browse and purchase luxury goods from the comfort of their homes. Luxury companies have recognised the importance of online channels in reaching a broader audience and capitalise their revenue.

Luxury watches and jewellery segment holds a significant position due to rising demand for watches by working professionals

As per luxury goods market analysis, the demand for luxury watches and jewellery is significantly higher since they help enhance one's look and serve as a timeless investment.  CHRISTIE’S, a renowned British auction house, reported a 153% increase in its luxury auction and private sales of jewels, watches, handbags, and wine products, reaching USD 980.0 million in 2021.

The perfumes and cosmetics segment also hold a significant luxury goods market share due to increasing demand for innovative and advanced skincare technologies and products. Women end-users predominantly drive this segment, showing a strong inclination towards luxury cosmetics, fragrances, and beauty accessories.

The bags/purses segment is poised for rapid growth in the market, driven by the rising demand for products made of vegan and original leather. Consumers are seeking versatile and stylish handbags that can be used in office and casual outings. Luxury brands, such Loew are introducing innovative designs, such as Balloon bag in different sizes.

Leading Companies in the Luxury Goods Market

Market players are leveraging their broad presence in regional markets, excellent product portfolios, and strong brand equity to strengthen their position in the market

LVMH Moet Hennessy Louis Vuitton SE, founded in 1854 and headquartered in Paris, France, is renowned for its luxury leather goods, accessories, watches, jewellery, eyewear, and fragrances.

Chanel Limited, founded in 1909 and headquartered in Paris, France, is a prominent luxury fashion house known for its ready-to-wear clothing, handbags, beauty products, fragrances, and accessories.

Hermès International S.A., founded in 1837 and based in Paris, France, is renowned for its luxury goods, including leather items, lifestyle accessories, perfumes, watches, and other high-end products.

Other key players in the market for luxury goods include Cartier International AG, Rolex SA, Estée Lauder Companies Inc., Tiffany & Co., Giorgio Armani S.p.A, VALENTINO S.p.A., Ralph Lauren Corporation, Kering SA, Compagnie Financière Richemont SA, Prada SpA, Capri Holdings Limited, and Burberry Group plc, among others.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Luxury Goods Market Analysis by Region

Asia Pacific is among the leading regional markets for luxury goods due to its large proportion of high-income individuals

The Asia Pacific luxury goods market growth can be attributed to factors like increasing expenditure of consumers on premium products, changing consumption habits, and growing fashion awareness. The rising population in the continent, coupled with the steady economic growth is likely to augment the market in the forecast period. Within the region, China is the market leader in the personal luxury goods sector.

The North American region’s growth is characterised by a strong presence of luxury brands, particularly in the United States. The regional market is driven by the increasing disposable incomes of the affluent population, particularly in cities like New York and Los Angeles. The market is also influenced by the growing demand for luxury goods among younger generations, who are increasingly seeking unique and exclusive experiences.

The European luxury goods market is a significant player in the global industry, with a strong presence of luxury brands such as Chanel, Louis Vuitton, and Gucci. The region's market is driven by the increasing demand for luxury goods among the affluent population, particularly in countries like the United Kingdom, France, and Germany. The market is expected to grow at a moderate rate, driven by the expansion of existing brands and the entry of new players.

Key Highlights of the Report

View Our Best Selling Reports

Artificial intelligence market

Cocoa and Chocolate Market

Hand Sanitizer Market

Latin America Explosives Market

Text-to-Speech Market

Automotive Ethernet Market

Plastic Resins Market

Animal Feed Micronutrients Market

Paper Cups Market

Contraband Detector Market

Luxury Goods Market Report Snapshots

Luxury Goods Market Size

Luxury Goods Market Share

Luxury Goods Market Growth

Luxury Goods Market Trends

Luxury Goods Companies

Luxury Goods Market Regional Analysis