Luxury Goods Market Size was valued at USD 288.5 Billion in 2022. The Luxury Goods market industry is projected to grow from USD 303.5 Billion in 2023 to USD 455.29 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.20 % during the forecast period (2023 - 2032). Growing affluent population and Propensity for Sustainable Products are the key market drivers encouraging the market's growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for luxury goods is being driven by the growing percentage of affluent people. A luxury good, also known as an up market good, is defined in economics as a good for which demand grows faster than it does in proportion to income, increasing the share of total spending on the good. In contrast, demand for luxury products rises proportionately less than that of essential goods. Superior products and luxury items are frequently used interchangeably.
Additionally, as the term implies, high net worth individuals are the primary consumers of luxury commodities. The market is expected to increase at the rate of increasing numbers of high-income population groupings. Businesses are aiming to attract the attention of millennials and Gen Z consumers by providing tailored product offerings. For example, Louis Vuitton offers customers the option to hand-paint or use hot stamping to customize their handbags. Therefore, the rise of the personal luxury goods industry would be supported by an increase in the wealthy population's demand for high-end fashion items.
Environmentally friendly raw materials and conscientious utility use are promoted in the luxury sector, where the sustainability trend has also made its way. Wearables like handbags, shoes, and jackets can be made using plant-based leather, such that found in pineapple and other natural materials, rather than animal-based leather. To guarantee sustainability throughout the supply chain, it is also important to use less water, less power, and safer raw materials. For example, the luxury solar watch brand Junghans sells its products worldwide. It is a well-known fashion brand that uses recycled and sustainable materials. The demand for eco-friendly items will therefore probably rise as more efforts are made to produce high-end goods in a sustainable manner.
For instance, based on LVMH's financial data for the initial half of 2020, which were made public in July of that year, the pandemic caused a fall in sales of popular luxury product categories in 2020. The same source claims that the company's revenue from the jewelry and watch category decreased by 38%, In contrast to pre-pandemic levels in 2019, revenue from the fragrances and cosmetics area fell by about 29% in the first half of 2020. Thus, result in driving the Luxury Goods market revenue.
The Luxury Goods Market segmentation, based on Product type includes Watches & Jewelry, Perfumes & Cosmetics, Clothing, Bags/Purses, and Others. The clothing segment dominated the market, because of the growing demand for it from end users who are men and women, as well as the often shifting fashion trends. Nevertheless, the growing demand for leather goods is expected to propel the market for bags to rapid growth.
The Luxury Goods Market segmentation, based on End-user includes Women, and Men. The men segment dominated the market. New developments in men's grooming would help the market expand, as more and more men would want branded clothing, premium watches, and goggles. As a result, many companies are focusing on creating products that may meet the diverse needs of both final consumers.
The Luxury Goods Market segmentation, based on distribution channel, includes Online, and Offline. The offline category generated the most income, because it enables buyers to examine, feel, and compare products in-store before making a purchase. Businesses are attempting to establish a stronger footprint in the market by increasing their presence in department stores and retail spaces.
Figure1: Luxury Goods Market, by Distribution channel, 2022&2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Luxury Goods market area will dominate this market. Therefore, it is anticipated that changes in the region's level of life will increase consumer expenditure on luxury goods. Thus, there are chances for major firms to grow their companies in this area.
Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.
Figure2: LUXURY GOODS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Luxury Goods market has the second-largest portion of the market It is ascribed to the presence of well-known companies that stimulate product consumption in the area, such as Burberry, LVMH, L'Oréal, and others. Further, the German Luxury Goods market had the biggest market share, and the UK Luxury Goods market was the European market with the quickest rate of growth.
The Asia-Pacific Luxury Goods Market is anticipated to expand between 2023 and 2032 at the quickest CAGR. This is because the middle class population in the area has more disposable income. Moreover, China’s Luxury Goods market had the biggest market share, and the Indian Luxury Goods market was the Asia-Pacific region's fastest-growing market.
Leading market players are putting a lot of money on R&D to broaden their product offerings, which will fuel further growth in the Luxury Goods market. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, Luxury Goods industry must provide reasonably priced goods.
Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the global Luxury Goods industry to help customers and expand the market segment. In recent years, the Luxury Goods industry has provided some of the biggest benefits to medicine. Major players in the Luxury Goods market, including Luxottica Group SpA (Italy), The Estée Lauder Companies Inc. (U.S.), Chow Tai Fook Jewellery Group Limited (Hong Kong), LVMH (France), Compagnie Financière Richemont SA (Switzerland), Kering SA (France), The Swatch Group Ltd. (Switzerland), and others, are engaging in research and development activities in an effort to boost market demand.
LVMH Moët Hennessy LVMH, also referred to as Louis Vuitton, is a Paris-based French multinational holding company that specializes in luxury goods. The company was created in 1987 by the union of the fashion house Louis Vuitton (founded in 1854) with Moët Hennessy. Moët Hennessy was founded after the 1971 merger of the cognac and champagne producers Hennessy (founded in 1765) and Moët & Chandon (founded in 1743). LVMH became the first European firm to be valued at more than $500 billion in April 2023. In October 2020, Tiffany & Co. will be acquired by LVMH for cash at a price of USD 131.50 per share. It is anticipated that this acquisition in the products market will enhance the offering of LVMH's premium jewelry division.
Ralph Lauren Corporation is a publicly traded fashion corporation. The corporation, which has its headquarters in New York City, manufactures goods in the mid-range to premium markets. Four product categories are marketed and distributed by Ralph Lauren: clothing, home goods, accessories, and perfumes. Primarily recognized for its flagship brand, Polo Ralph Lauren, the firm offers garments under mid-range, sub-premium, and premium labels, as well as its most expensive luxury label, Purple. Club Monaco was also owned by the corporation between 1999 and 2021. In October 2020, In the United States and Europe, Ralph Lauren pioneered the on-demand production of personalized packable coats.
Key Companies in the Luxury Goods market include
Luxury Goods Industry Developments
April 2023: Hey Harper, a premium jewelry manufacturer situated in Portugal, has introduced Titled ICONS, a new jewelry product capsule line, in the United Kingdom. The GARDEN OF LIGHT Brooch, PETALS SPIRAL Bracelet, CRYSTAL BLOOM Ring, GILDED THORNS Ear Cuff, and other pieces are part of the collection.
January 2021: The Swiss technology group OC Oerlikon expanded its footprint in the high-end coatings market for luxury products by acquiring Coeurdor, a full-service supplier of components for luxury watches, belts, bags, and other items.
November 2020: Richemont, Alibaba Group, and Farfetch joined together to support digitization in the luxury sector.
| Report Attribute/Metric | Details |
| Market Size2022 | USD 288.5 Billion |
| Market Size 2023 | USD 303.5 Billion |
| Market Size2032 | USD 455.29 Billion |
| Compound Annual Growth Rate (CAGR) | 5.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, End-user, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The US, German, France, UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil |
| Key Companies Profiled |  Luxottica Group SpA (Italy), The Estée Lauder Companies Inc. (U.S.), Chow Tai Fook Jewellery Group Limited (Hong Kong), LVHM (France), Compagnie Financière Richemont SA (Switzerland), Kering SA (France), The Swatch Group Ltd. (Switzerland), |
| Key Market Opportunities | ·      A Predisposition for Sustainable Products to Present Growth Prospects for the Market |
| Key Market Dynamics | ·      Technology Embedded Product Emergence is a Significant Trend |
Frequently Asked Questions (FAQ) :
In 2022, the size of the Luxury Goods Market was estimated to be USD 288.5 billion.
From 2023 to 2032, the global market is expected to expand at a compound annual growth rate (CAGR) of 5.20%.
North America held the most market share worldwide.
LVHM (France), Kering SA (France), Compagnie Financière Richemont SA (Switzerland), Chow Tai Fook Jewellery Group Limited (Hong Kong), The Estée Lauder Companies Inc. (U.S.), and Luxottica Group SpA (Italy) are the major participants in the market.
In 2022, the market was dominated by the clothing category.
The Offline industry held the biggest market share worldwide.
Research Analyst Level II I have about two years of experience working in the consumer goods and retail industries and i am a biotech graduate.a tech-savvy analytically focused professional with a strong capabilities in identification, concept generation, and strategy evaluation. i can produce data-driven solutions while fusing unusual viewpoints with original concepts. i have been extensively working on business case studies, competitive & comparative analyses, and strategic reports. my primary areas of experience include client management, financial analysis, supply chain evaluation, market entry strategy evaluation, and estimating and forecasting market size.
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