Germany Luxury Goods Market Research Report Information By Type (Clothing and Apparel, Footwear, Bags, Jewelry, Watches, and Other Accessories), By Distribution Channel (Single-brand Stores, Multi-brand Stores, Online Stores, and Other Distribution Channels) –Market Forecast Till 2032

Germany Luxury Goods Market Overview

Germany Luxury Goods Market Size was valued at USD 15.1 Billion in 2022. The luxury goods market industry is projected to grow from USD 15.73 Billion in 2023 to USD 21.866 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2023 - 2032). The main market drivers behind the expansion of the luxury goods market in Germany are the advancements in online marketing and the growing usage of digital media for product marketing. Additionally, a rise in the use of high-tech, technologically advanced products would aid in the expansion of luxury goods e-commerce websites.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Luxury Goods Market Trends

• Growing E-commerce Sector is Driving the Market Growth

One of the largest e-commerce markets in Europe is Germany, where a popular product category for online sales is apparel. The prevalence of smartphones, high internet penetration, and a big number of fashion e-commerce sites are all contributing factors to the enormous number of e-commerce customers. Luxury brands from a wide range of categories, including clothing, shoes, and cosmetics, are available in e-commerce stores. In 2021, for example, 76% of consumers bought garments from online fashion stores, according to a recent data released by the U.S. ITA (The International Trade Administration). Additionally, 59% of online purchases were conducted using smartphones. Furthermore, the trend of online retailing is being supported by digital marketing and the extensive usage of social media. Thus, in the recent past, the pandemic-related change in consumer purchasing behavior has been the driving force behind the online sale of luxury products.

Growing environmental concerns have consumers searching for sustainable clothes and methods to lessen their influence on the environment. Customers are interested in buying luxury goods made with ethical and ecological practices; they are also recycling and upcycling items. Industry manufacturers are focusing their investments on developing sustainable product offerings as a response to changing consumer perceptions. For instance,  the luxury bag company Jérome Studio, situated in Berlin, crafts contemporary designs using leather that is sustainably sourced from leftovers from the meat industry. Additionally, the bag tanning technique used by the brand uses a tanning solution made entirely of sustainable olive leaves. Grüne Erde, Hessnatur, and ArmedAngels are the three main sustainable fashion labels in Germany. Furthermore, Mr. & Mrs. Green, Avocado Store, Waschbär, Manufactum, and other sustainable online retailers are included. Thus, driving the luxury goods market revenue.

Luxury Goods Market Segment Insights:

Luxury Goods Type Insights

The Germany Luxury Goods market segmentation, based on type includes Clothing and Apparel, Footwear, Bags, Jewelry, Watches, and Other Accessories. The bags segment dominated the market mostly as a result of the rising demand for goods made of leather. End users are requesting more stylish and coordinated handbags, which may be utilized for a variety of occasions including casual, party, or work use. For instance, the luxury company Loewe introduced their Balloon bag in February 2020. It was offered in all three sizes—small, medium, and large—based on client preference.

Luxury Goods Distribution Channel Insights

The Germany Luxury Goods market segmentation, based on distribution channel, includes Single-brand Stores, Multi-brand Stores, Online Stores, and Other Distribution Channels. The online stores category generated the most income. The online distribution channel entails purchasing luxury items via a variety of e-commerce platforms, with online payments made via digital payment methods. Moreover, the COVID-19 pandemic has created even more chances for the luxury industry's internet channels to be strengthened.

Figure 1: Germany Luxury Goods Market, by Distribution Channel, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Luxury Goods Regional Insights

The Germany luxury goods market area will grow at a significant rate. Germany's high per capita income and growing consumer disposable income have led to a rise in the region's desire for luxury products. As a result, suppliers sell luxury products including clothing, makeup, and other luxury goods through third-party internet dealers in addition to their own web sites. Throughout the projected term, this will fuel the expansion of the nation's online luxury goods sector. Additionally, the market for luxury products is being driven by an increase in foreign tourists visiting Germany and their spending. In addition, the German market for luxury products is benefiting from rising consumer living standards and rising levels of disposable income. Furthermore, the luxury goods market in the region is anticipated to develop due to the growing acceptance and expansion of online channel shopping. The country's market will increase as a result of these variables throughout the projection period.

Luxury Goods Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the luxury goods market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, luxury goods industry must offer cost-effective items.

Key Companies in the luxury goods market include

• LVMH Moet Hennessy


• Chanel SA


• Hermes International SA


• Kering SA


• Rolex SA


• Marc O Polo Group


• Prada SpA


• Givenchy


• L'Oreal SA


• HUGO BOSS AG

Luxury Goods Market Segmentation

Luxury Goods Type Outlook

• Clothing and Apparel


• Footwear


• Bags


• Jewelry


• Watches


• Other Accessories

Luxury Goods Distribution Channel Outlook

• Single-brand Stores


• Multi-brand Stores


• Online Stores


• Other Distribution Channels