The luxury fashion market size was valued at USD 279.14 billion in 2023. The luxury fashion industry is projected to grow from USD 289.05 billion in 2024 to USD 379.30 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.46% during the forecast period (2024 - 2030). The rising number of millionaires, brand loyalty among customers, and the rising perception among consumers that luxury goods contribute to greater social acceptance are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
An increase has been witnessed in the number of users of various social media sites, along with the rise in internet penetration. Considering this, most of the key players in the luxury fashion market strategize on promoting their products and services on these social media platforms. Social media marketing is one of the major strategies adopted by various companies and industries, including the wearable products market, to impart awareness about their product offerings among target customers on social media channels. Thus, through social media marketing strategy, the luxury fashion market sees a critical opportunity to gain traction and eventually increase its registration among its target segments, driving the growth of the luxury fashion marketrevenue.
Moreover, increasing communication between consumers and key players through social media platforms and online retail stores drives the latest trendy luxury apparel sales. The rise in online transactions has supported the market growth of luxury apparel over the last few years. Consumer-specific attractive promotions and advertising through magazines and social media influence the sales of luxury apparel, as nearly half of the buying decisions are majorly influenced by what consumers see or hear from offline and online platforms positively enhanced the market CAGRacross the globe in recent years.
However, premium brands are also tapping into the growing demand for modest wear across countries like the United Arab Emirates, Saudi Arabia, and others, which are gaining traction among consumers willing to address both spiritual and stylistic requirements. Globally, the modest fashion industry has reached USD 277 billion (State of the Islamic Economy Report 2020/21), with Saudi Arabia representing one of the significant market shares. This is aided by the country's robust modern retailing, the demand for brands, and the growing Muslim population, creating a lucrative space for luxury brands.
The luxury fashion market segmentation, based on product type, includes clothing & apparel, footwear, and accessories. The clothing & apparel segment held the majority share 2022 of the luxury fashion market revenue due to the growing spending of the population and the shifting preferences of people towards purchasing luxury products. However, accessories are the fastest-growing category over the forecast period due to growing consumer awareness regarding fashion and appearance.
The luxury fashion market data has been bifurcated into the consumer group, including women, men, and unisex. The women segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is attributed to the growing attention towards fashion, dressing, and the increasing importance of appearance among women, positively impacting the market growth. However, men are the fastest-growing category over the forecast period due to increased spending capacity and growing awareness of luxurious apparel.
Figure 1: Luxury Fashion Market, by Consumer Group, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The luxury fashion market data has been bifurcated into the distribution channel, including store-based and non-store-based. The store-based segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is owing to the high pricing and quality of luxury products. Consumers prefer to do physical checks regarding material, fit, and other factors before spending a huge amount on luxury clothes. However, non-store-based is the fastest-growing category over the forecast period. Luxury dresses for all brands are not readily available at various shops and hence are accessible to limited consumers. People living in different countries can easily purchase such items through online channels. Also, the multi-brand online platform can reach out to time-pressed consumers who only have a little time to browse through different mono-brand sites giving a wider opportunity for online retailing of luxury fashion.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Europe luxury fashion market accounted for USD 114.77billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is owing to the presence of renewed fashioned brands such as Prada, Burberry, Gucci and many other brands in the countries such as Italy, UK results in the effective supply of luxury fashioned clothes in the region. Further, the UK luxury fashion market held the largest market share, and the Germany luxury fashion market was the fastest-growing market in the Europe region.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: LUXURY FASHION MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America luxury fashion market accounts for the second-largest market share over the forecast period. This is attributed to the increasing partying and event celebration trends in the countries such as the US, Canada, and Mexico that give rise to the demand for fashioned luxury costumes. Further, the US luxury fashion market held the largest market share, and the Canada luxury fashion market was the fastest-growing market in the Europe region.
The Asia-Pacific luxury fashion market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to regional consumers' increasing consumer awareness and brand consciousness. China, Hong Kong, and India have the largest penetration rate for luxury clothing. Several brands are exploring the region's untapped markets and establishing their stores owing to the rising demand. Moreover, China luxury fashion market held the largest market share, and the India luxury fashion market was the fastest-growing market in the Asia-Pacific region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the luxury fashion market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the luxury fashion industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the luxury fashion industry to benefit clients and expand the market sector. The luxury fashion market major player such as Ralph Lauren (US), Capri Holdings Limited (US), PVH Corp. (US), and others are working on expanding the market demand by investing in research and development activities.
Gucci is an Italian high-end luxury fashion house based in Florence, Italy. Its product lines include handbags, ready-to-wear, footwear, accessories, and home decoration, and it licenses its name and branding to Coty, Inc. for fragrance and cosmetics under the name Gucci Beauty. In April 2022, Gucci launched its Nojum - a modest collection explicitly designed for the unostentatious needs of the Middle East, including Saudi Arabia.
Also, Hermes International designs produce and distributes personal luxury accessories and apparel. The Company operates a chain of boutiques under the Hermes name that sells leather, scarves, men's clothes, ties, women's fashions, perfume, watches, stationery, shoes, hats, gloves, and jewelry products.In October 2020, Hermès launched its first flagship digital store in Saudi Arabia. Soon after, the next month, the Italian brand Loro Piana also developed its e-commerce platform for Saudi Arabians. Players are also introducing the concept of exclusivity via online stores by featuring online-only products, which is expected to bring greater sales through the channel.
Key Companies in the Luxury Fashion market include
Luxury Fashion Industry Developments
November 2022: The New Concepts Nordstrom platform and the British luxury brand Burberry announced the debut of Concept 019: Burberry by introducing a capsule collection and several in-store installations. The capsule collection includes outerwear staples, including trench coats and puffer jackets. In contrast, ready-to-wear and accessories for men, women, and children include graphic T-shirts, knitwear, tailoring, bags, shoes, and scarves.
September 2022: Hermès International SA announced opening of a new duplex store offering a range of premium apparel within the Union Square shopping mall in Ho Chi Minh City, Vietnam.
February 2022: LVMH announced its plans to acquire the United States-based luxury brand Ralph Lauren. The company intends to increase its worldwide brand development. In a developing market like Saudi Arabia, where Ralph Lauren already has an omnichannel presence, this purchase will allow brands to mold themselves according to the region's demographic trends and deliver new-end products to Saudi consumers.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 279.14 billion |
| Market Size 2024 | USD 289.05 billion |
| Market Size 2032 | USD 379.30 billion |
| Compound Annual Growth Rate (CAGR) | 3.46% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Consumer Group, Distribution Channel and Region |
| Geographies Covered | North America, Europe, Asia-Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Ralph Lauren (US), Capri Holdings Limited (US), PVH Corp. (US), Kering (France), LVMH (France), Inditex (Spain), Giorgio Armani S.P.A. (Italy), Chanel S.A. (France), Dolce & Gabbana (Italy), and Burberry Ltd. (UK) |
| Key Market Opportunities | The rising perception among consumers that luxury goods contribute to greater social acceptance |
| Key Market Dynamics | Increasing communication between consumers and key players through social media platforms |
Frequently Asked Questions (FAQ) :
The luxury fashion market size was valued at USD 279.14 Billion in 2023.
The market is projected to grow at a CAGR of 3.46% during the forecast period 2024-2032.
Europe had the largest share of the market.
The key players in the market are Ralph Lauren (US), Capri Holdings Limited (US), PVH Corp. (US), Kering (France), and LVMH (France).
The clothing and apparel category dominated the market in 2022.
Women had the largest share of the market.
Store-based had the largest share in the market.
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