Luxury Goods Market: Global Industry Analysis and Forecast (2024 -2030) Trends, Statistics, Dynamics, Segmentation by Distribution Channel, End Users, and Region

Luxury Goods Market Overview

In economics, a luxury good is a good for which demand increases more than what is proportional as income increases so that expenditures on the good become a greater proportion of overall spending. Luxury goods are in contrast to necessity goods, where demand increases proportionally less than income. Luxury goods are often used synonymously with superior goods.

These Luxury Goods Market has significantly benefited from the economic growth in the Asia-Pacific and LAMEA regions. The increase in the expenditure capacity of consumers and an increase in living standards are expected to increase the Luxury Goods Market growth. The luxury goods industry has observed an expansion in demand during the forecast period, owing to the disposition of consumers towards luxury goods and an increased preference for premium products over cost-effective products. Progressions in online marketing and the increase in the use of digital media for product marketing are the key factors conducive to the growth of the global Luxury Goods Market. An increase in the acceptance of technologically advanced and high-tech products would contribute to the growth of e-commerce in the Luxury Goods Market. The economic situations are some of the major factors that could hamper the Luxury Goods Market growth.

The Currency fluctuations and less number of brand outlets in developing regions could be the Luxury Goods Market restraining factors. The Luxury Goods Market overall luxury goods market size is the summation of the revenues generated from luxury products, such as designer apparel & footwear, cosmetics, travel goods, fine wines/champagne, jewelry & timepieces, and other luxury goods. The designer apparel & footwear segment has a major share in this Luxury Goods Market, followed by jewelry & timepieces. The accessories and other luxury goods segment is likely to grow at a fast pace, especially in emerging markets, throughout the forecast period. The manufacturers are focusing on craftsmanship and quality of the product, owing to which the Luxury Goods Market would witness a surge in the demand for all product segments.

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Luxury Goods Market Dynamics

The emergence of Technology Embedded Products is a Prominent Trend. Innovatively created and fashion-forward goods that combine technology elements in jewelry items, handbags, or goggles will likely augment product demand. In March 2023, an innovation lab, Cathy Hackl, launched VerseLux, a luxury, high-end jewel equipped with Near-Field Communication chips in China. Increasing Number of Wealthy Population to Boost Luxury Goods Market Expansion. Luxury items, as the name suggests, are products majorly explored by high-net-worth individuals. An Increasing number of high-income population groups is set to propel the Luxury Goods Market growth. Companies are targeting the millennial and GenZ population with customized product offerings to gain their attention. Louis Vuitton lets customers personalize their handbags using hot stamping or hand-painting. The increasing demand for high-end fashion products from the rich population would support the personal Luxury Goods Market growth.

The inclination toward Sustainable Products to Offer Luxury Goods Market Growth Opportunities. The sustainability trend has also entered the luxury business, where environmentally friendly raw materials and responsible use of utilities are promoted. Plant-based leather, such as the one derived from pineapple and other natural materials, is used to produce jackets, footwear, and handbags instead of leather goods derived from animals. For instance, in June 2022, Vikki Jones, a luxury products retailer, launched its new eco-friendly tote bags made of 101% vegan leather, ensuring no animals were harmed in the manufacturing process.

Luxury Goods Market Segment Analysis

Based on the Distribution Channel, The Offline segment dominates Luxury Goods Market in the year 2023 and is expected to do the same during the forecast period. The event monitor has the largest market share in 2023. The offline segment is expected to hold a major Luxury Goods Market share, as it allows customers to physically see and touch the product and compare their features in person at the store. Companies are trying to increase their presence through retail or department stores to have a strong foothold in the market for instance, in February 2022, Burberry announced the acquisition of Printerps in Paris, France. Printemps is a department store chain offering a wide range of luxury products, apparel, and beauty products. The purchase conveniences of online channels would make it the fastest-growing segment. 

Based on the End Users, TheWomen segment dominates Luxury Goods Market in the year 2023 and is expected to do the same during the forecast period. The event monitor has the largest market share in 2023. Most luxury products, including cosmetics, fragrances, handbags, necklaces, earrings, and bracelets are primarily used by women end-users, making women a major segment. The emerging male grooming trends would support the growth of the men’s segment, wherein branded shirts, goggles, and high-end watches would experience greater demand for them. The numerous players are focusing on introducing products that cater to the varied demands of both end-users. In January 2022, OMEGA launched a new luxury eyewear collection featuring sunglasses suitable for both men and women.

Luxury Goods Market Regional Insights

The Asia Pacific market is projected to grow rapidly due to the increasing disposable incomes of the region's middle-class population. Increasing access to global luxury brands would lead to increased product consumption. In July 2023, Burberry, a U.K.-based luxury products company, announced its first social retail store in Shenzhen, for Chinese consumers, along with Tencent's partnership. The store spans about 539 sqm/5,800 sqft, with about 10 rooms offering various interactive, personalized retailing experiences. A surging number of working women in the region has accelerated the consumption of women-centric luxury products, such as handbags, high-end footwear, and jewelry products, with their growing disposable income.

Luxury Goods Market Scope

Luxury Goods Market Key Players

1. LVHM 
2. Compagnie Financière Richemont SA
3. Kering SA 
4. Chow Tai Fook lewellery Group Limited 
5. The Estée Lauder Companies Inc. 
6. Luxottica Group SpA 
7. The Swatch Group Ltd. 
8. L'Oréal Group 
9. Ralph Lauren Corporation 
10. Shiseido Company, Limited