Luxury Goods Market Size, Share, Growth & Forecast 2031

Report Description

The luxury goods market size was valued at USD 252.71 Billion in 2022 and is projected to reach USD 378.80 Billion by 2031, expanding at a CAGR of 4.6% during the forecast period, 2023 – 2031. The growth of the market is attributed to increasing disposable income of the individuals.

Luxury goods, often known as superior goods, are items whose demand is proportional to consumers wealth. Individuals use these items mostly as status symbols. Emerging nations such as India, Brazil, UAE, South Korea, and China offer significant growth opportunities for the market players. The market has grown due to an increase in GDP and an increase in sales of luxury brands. The luxury goods market has been booming in recent years, due to a shift in customer preferences toward high-end items and a preference for quality products over low-cost alternatives.

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The Covid-19 pandemic affected the demand and supply of Luxury goods market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

Luxury Goods Market Trends, Drivers, Restraints, and Opportunities

• Introduction of unique product designs is projected to drive the market during forecast period.

• Increased demand for high-end cosmetics and beauty products is estimated to propel the global luxury goods market.

• Rising adoption of omnichannel trading is expected to boost the global luxury goods market during the projected period.

• Rising disposable income along with growing awareness about several skin disease is anticipated to fuel the market.

• Efforts to grab the interest of the younger generation are projected to drive the global luxury goods market.

• The growing ageing population creates a demand for high-end anti-aging creams, which is estimated to propel the market.

• High cost of the luxury product is expected to hamper the market growth.

• R&D and technological advancements in the luxury products is projected to create lucrative opportunities for the market players.

Scope of Luxury Goods Market Report

The report on the global luxury goods market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Luxury Goods Market Segment Insights

The offline segment is projected to hold major market share during the forecast period

Based on distribution channels, the market is bifurcated into online and offline. The offline segment is projected to hold major market share during the forecast period owing to the fact that it allows customers to touch and feel the product in physically and compare the quality of several products at store. To gain a strong foothold in the market, businesses are attempting to expand their presence through retail or department stores. For instance, Burberry announced the acquisition of Printemps in Paris in February 2020. Printemps is a department store chain that sells a variety of high-end items as well as fashion and cosmetics. The online segment is estimated to grow at a rapid pace due to ease of purchase through this channel. The covid-19 epidemic has also widened chances for luxury brands to strengthen their online presence. For example, Reliance declared its intentions to launch a new e-commerce portal in India for purchasing premium items in March 2020. Thus, the online shopping segment is projected to boost during the forecast period.

The clothing segment is projected to account for a key market share during the forecast period

In terms of product types, the market is segregated into perfumes & cosmetics, watches & jewelry, bags/purses, clothing, and others. The clothing segment is projected to account for a key market share during the forecast period owing to rapidly varying fashion trends. The bags segment, on the other hand, is expected to increase fast due to rising demand, particularly for leather-based products. End-user demand for attractive and matching handbags is growing, which can be utilized for a variety of purposes such as party bags, office bags, or casual bags depending on the situation. The balloon bag was introduced by the Loewe luxury brand in February 2020, and it was offered in three sizes, small, medium, and big, depending on consumer preferences. The watches & jewelry segment is estimated to hold major market share during the forecast period owing to rising demand for smart watches and wide range of jewelry products. According to a survey by Savills Global Luxury Retail 2019 Outlook, the portion of new jewelry stores opened scaled from roughly 10% to 13% in 2019.

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The women segment holds key market share

On the basis of end-users, the market is fragmented into men and women. The women segment holds key market share. Women are the primary consumers of luxury goods such as bracelets, earrings, necklaces, handbags, fragrances, and cosmetics. Evolving male grooming trends is anticipated to assist the expansion of the men's segment, with more demand for branded high-end watches, goggles, and shirts. As a result, many companies are working on developing solutions that can meet the diverse needs of both end-users and businesses.

Asia Pacific is anticipated to dominate the market

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market. Consumers are encouraged to switch from ordinary items to luxury goods through technological improvements and increased consumer awareness. The steady enhancement in the living standards of the population in the region is projected to create immense opportunities for the market players.

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