Global luxury goods industry could grow by 12% this year

18 August 2023 2 min. read
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The luxury goods market – think watches, jewelry, and high fashion brands – is growing at a remarkable rate, with the global market expected to reach up to €570 billion by 2030, which is double its worth in 2020.

The personal luxury goods market is expected to grow by between 10% and 12% this year. That is according to a new study from management consulting firm Bain & Company in collaboration with Altagamma, the association of Italy’s top luxury brands.

“The luxury industry is experiencing a new phase after its post-pandemic growth, with renewed drivers of resilience establishing winners and losers,” said Claudia D’Arpizio, partner at Bain & Company.

Global luxury goods industry could grow by 12% this year

Though the sector is growing globally, disparities between different countries stand out in the report. The US, for example, has seen less spending on luxury goods this year, with less spending overall linked to economic turbulence and inflation.

While growth in the US slows, Europe and the Middle East have seen the industry booming as tourism increases and more wealthy individuals have money to blow.

“Brands who want to succeed need to focus holistically on consumers; balance their exposure across geographies; offer a high value proposition with elevated entry clienteling and experientiality at scale; and push on icons, timeless, and statement pieces,” said D’Arpizio.

The luxury market in mainland China is also expected to grow this year, building on previous growth that was ushered in by the suspension of draconian Covid-related restrictions: The Chinese government allowed stores to reopen just before the huge Chinese New Year shopping season in January of this year.

Southeast Asia, like Europe, has benefitted from an increase in tourism, particularly visitors from Russia and China, where spending on luxury goods has increased. Spending on luxury shoes has been booming in Asia, more so than in other regions where watches, jewelry, and luxury brands have been more popular.

previous study from earlier this year showed how China was projected to make up a remarkable 25% of the global luxury goods market by 2025. That would see China displacing Europe and the US to take the lead in the market.

Other fast-growing luxury markets are Saudi Arabia and the UAE, as per another recent report by Altagamma – delivered in conjunction with Boston Consulting Group.