"Assisting You in Establishing Data Driven Brands"

Luxury Goods Market Size, Share & COVID-19 Impact Analysis, By Product Type (Watches & Jewelry, Perfumes & Cosmetics, Clothing, Bags/Purses, and Others), By End-user (Women and Men), By Distribution Channel (Offline and Online), and Regional Forecast, 2023-2030

Last Updated :April 01, 2024 | Format: PDF | Report ID: FBI103866

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global luxury goods market size was valued at USD 272.74 billion in 2022 and is anticipated to grow from USD 284.00 billion in 2023 to USD 392.40 billion by 2030, exhibiting a CAGR of 4.7% during the forecast period.


Premium products are key entities showcasing the status symbol of its owner. Such products' excellent quality and high durability come at the highest price, affordable to only a small global population. Therefore, companies are targeting a wealthy population with creative designs, as the product cost is usually not the criteria for such groups, wherein the uniqueness and eminence of the product are the key deciding factors before their purchase.


For instance, in April 2023, Bernhard H. Mayer, a QNET LTD.-owned Swiss personal fashion brand, launched the Mecanique Collection, a timepiece collection of luxury watches of a unique mecanique design style in the Hong Kong market.


Therefore, introducing novel luxury goods designs would help the market grow rapidly in the forecast period of 2023-2030.


COVID-19 IMPACT


Sharp Decline in Product Demand Amid COVID-19 Affected Market Size


The low-income group of the population usually avoids investment in extravagant items. Being non-essential products, luxury products experienced a negative demand during the pandemic, as people struggled to purchase daily required goods.


The loss of employment and reduction in salaries led to changes in the income level of the working groups in the year 2020. Similarly, stay-at-home orders decreased the need to own such premium products. The lockdown also led to the cancellation or postponement of several fashion-related events and celebrations, impacting the demand for personal luxury goods. Besides, the cancellation of tours and trips also harmed the purchase of such products during travel, such as those purchased in duty-free shops on airports or cruises.


For instance, as per the financial result of the first half of 2020 released in July 2020 by LVMH, revenue from leading luxury product categories declined in 2020 due to the pandemic. As per the same source, the company recorded a decline in revenue from the perfumes & cosmetics segment by about 29% in the first half of 2020 compared to the pre-pandemic levels in 2019, wherein revenue for the watches & jewelry segment decreased by 38%. However, it reported that online sales of luxury goods achieved positive attributes from customers due to closure of retail stores.


Therefore, the global personal goods industry will likely gain momentum through online channels soon, whereby releasing lockdown restrictions would further boost the market proliferation.


LATEST TRENDS


Request a Free sample to learn more about this report.


Emergence of Technology Embedded Products is a Prominent Trend


Innovatively created and fashion-forward goods that combine technology elements in jewelry items, handbags, or goggles will likely augment product demand. For instance, in March 2023, an innovation lab, Cathy Hackl, launched VerseLux, a luxury, high-end jewels equipped with Near-Field Communication (NFC) chips in China. Similarly, in April 2023, luxury apparel and accessories brand Coach launched Coachtopia, a line of luxury-fashioned products such as bags, wallets, footwear, and garments equipped with NFC chips. These products are available in the U.S., Canada, the U.K., and Asian markets.


DRIVING FACTORS


Rising Number of Wealthy Population to Boost Market Expansion


Luxury items, as the name suggests, are products majorly explored by high net worth individuals. A rising number of high-income population groups is set to propel the market growth. For instance, as per Oxfam International’s data published in January 2020, about 2,153 billionaires worldwide have more wealth than about 4.6 billion people, who comprise 60% of the global population.


Companies are targeting the millennial and GenZ population with customized product offerings to gain their attention. For instance, Louis Vuitton lets customers personalize their handbags using hot stamping or hand-painting. Therefore, increasing demand for high-end fashion products from the rich population would support the personal luxury goods market growth.


Inclination toward Sustainable Products to Offer Market Growth Opportunities


The sustainability trend has also entered the luxury business, where environmentally friendly raw materials and responsible use of utilities are promoted. Plant-based leather, such as the one derived from pineapple and other natural materials, can be used to produce jackets, footwear, and handbags instead of leather goods derived from animals. For instance, in June 2020, Vikki Jones, a luxury products retailer, launched its new eco-friendly tote bags made of 100% vegan leather, ensuring no animals were harmed in the manufacturing process.


Besides, lower electricity usage, less water, and safer raw materials are being stressed to ensure sustainability throughout the supply chain. For instance, Junghans, a renowned fashion brand, offers high-end solar watches made of sustainable and recycled materials in the global market. Therefore, rising initiatives toward sustainable high-end goods production will likely surge the demand for eco-friendly products.


RESTRAINING FACTORS


Growing Adoption of Second-hand Branded Items to Hamper Demand


An increasing trend of purchasing second-hand branded products or renting luxury products is likely to hamper the market of original luxury products as second-hand products are offered at a lower cost than the original price. Similarly, the growing counterfeiting trend, wherein products resembling luxury brands are offered at lower prices, is further likely to restrain the market growth.


SEGMENTATION


By Product Type Analysis


To know how our report can help streamline your business, Speak to Analyst


Clothing Segment to Dominate Owing to Rapidly Changing Fashion Trends


The market is divided into watches & jewelry, perfumes & cosmetics, clothing, bags/purses, and others based on product type.


The clothing segment is expected to hold a major share owing to its increasing demand from both men and women end-users, along with rapidly changing fashion trends. However, the bags segment is expected to grow rapidly due to increasing demand for leather-based products. The demand for fashionable and matching handbags is increasing from end-users that, in turn, can be used for varied applications such as office, party, or casual bags. For instance, in February 2020, the Loewe luxury brand launched its Balloon bag, made available in all three sizes, namely, small, medium, and large, per customer requirements.


The watches & jewelry segment is expected to hold a significant share due to the increasing demand for smart luxury watches and varied jewelry items. For instance, CHRISTIE’S, a British auction house, reported 153% increase in its jewels, watches, handbags, and wine products’ luxury auction and private sales, reaching USD 980.0 million in 2021. It has 5,478 auction houses in the U.K. The others segment includes products, such as footwear and eyewear, which is expected to gain traction due to the introduction of new product designs in the market.


By End-user Analysis


Women Segment to Hold Highest Share, Backed by Greater Inclination toward Beautification


Based on end-user, the market is segmented into men and women. Most luxury products, including cosmetics, fragrances, handbags, necklaces, earrings, and bracelets are primarily used by women end-users, making women a major segment.


However, emerging male grooming trends would support the growth of the men segment, wherein branded shirts, goggles, and high-end watches would experience greater demand from them. Therefore, numerous players are focusing on introducing products that can cater to the varied demands of both end-users. For instance, in January 2020, OMEGA launched a new luxury eyewear collection featuring sunglasses suitable for both men and women.


By Distribution Channel Analysis


Online to Hold Largest Share due to its Greater Convenience in Purchasing


Based on distribution channel, the market is segmented into offline and online. The offline segment is expected to hold a major luxury goods market share, as it allows customers to physically see and touch the product and compare their features in person at the store. Companies are trying to increase their presence through retail or department stores to have a strong foothold in the market. For instance, in February 2020, Burberry announced the acquisition of Printemps in Paris, France. Printemps is a department store chain offering a wide range of luxury products, apparel, and beauty products.


However, the purchase conveniences of online channels would make it the fastest-growing segment. The COVID-19 pandemic has further provided opportunities to strengthen online channels in the luxury business. For instance, in March 2020, Reliance announced its plans to introduce a new e-commerce platform for shopping for luxury goods in India. Therefore, the online shopping trend of luxury goods is likely to continue in the near future.


REGIONAL INSIGHTS


Asia Pacific Luxury Goods Market Size, 2022 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


As per geographic market analysis, the Asia Pacific market stood at USD 109.42 billion in 2022. The Asia Pacific market is projected to grow rapidly due to increasing disposable incomes of the region's middle-class population. Similarly, the rising access to global luxury brands would lead to increased product consumption. For instance, in July 2020, Burberry, a U.K.-based luxury products company, announced its first social retail store in Shenzhen, for Chinese consumers, along with Tencent’s partnership. The store spans about 539 sqm/5,800 sqft, with about 10 rooms offering various interactive, personalized retailing experiences. Moreover, a surging number of working women in the region has accelerated the consumption of women-centric luxury products, such as handbags, high-end footwear, and jewelry products, with their growing disposable income.


The considerable share of Europe in the global market is attributed to the presence of prominent players, including L’Oréal, LVMH, Burberry, and others supporting product consumption in the region. The North American market is characterized by the increasing presence of many rich people, majorly in the U.S., that has supported the product demand. For instance, as per the report titled ‘Billionaire-Bonanza-2020,’ published in April 2020 by the Institute for Policy Studies, the number of billionaires increased from 298 in 2000 to about 614 in 2020 in the U.S. Besides, the presence of a population that is highly inclined toward fashionable apparel and accessories has added impetus to the growth of the market in this region.


To know how our report can help streamline your business, Speak to Analyst


The South America market is likely to grow steadily as the urban population increases in Brazil and Chile. Changes in the standard of living are therefore expected to augment the spending on luxury products in the region. Besides, the Middle East and Africa will likely show a growing trend with the increasing demand for luxury products from Gulf countries such as the U.A.E. and Saudi Arabia. Therefore, key players have opportunities to expand their businesses in this region.


KEY INDUSTRY PLAYERS


Key Players Focus on Strategies such as Partnerships and New Product Development to Gain Market Share


Top luxury goods companies hold a major market share due to their strong product portfolios and wider reach in most regional markets. Luxury goods players are focusing on strategies, such as partnerships, new product launches, and acquisitions, to strengthen their foothold in the market. For instance, on 11th December 2020, L'Oréal signed an agreement with Prada S.p.A. that will allow the company to create, develop, and distribute luxury beauty products of the latter.


LIST OF COMPANIES PROFILED:



  • LVHM (France)

  • Compagnie Financière Richemont SA (Switzerland)

  • Kering SA (France)

  • Chow Tai Fook Jewellery Group Limited (Hong Kong)

  • The Estée Lauder Companies Inc. (U.S.)

  • Luxottica Group SpA (Italy)

  • The Swatch Group Ltd. (Switzerland)

  • L’Oréal Group (France)

  • Ralph Lauren Corporation (U.S.)

  • Shiseido Company, Limited (Japan)


KEY INDUSTRY DEVELOPMENTS:



  • April 2023: Hey Harper, a Portugal-based luxury jewelry maker, launched Titled ICONS, a new capsule collection of jewelry products in the U.K. The collection includes the GILDED THORNS Ear Cuff, PETALS SPIRAL Bracelet, CRYSTAL BLOOM Ring, GARDEN OF LIGHT Brooch, and others.

  • January 2021: OC Oerlikon, a Switzerland-based technology group, acquired Coeurdor, a full-service provider of components for luxury bags, belts, watches, and others to expand its presence in the high-end coatings industry for luxury goods.

  • November 2020 – Farfetch, Alibaba Group, and Richemont partnered to help promote digitization in the luxury industry.

  • October 2020: Ralph Lauren introduced the on-demand manufacturing of custom packable jackets in the U.S. and EMEA.

  • October 2020 – LVMH announced the acquisition of Tiffany & Co. for USD 131.50 per share in cash. This acquisition in the goods market is expected to strengthen the portfolio of the luxury jewelry section of LVMH.


REPORT COVERAGE


An Infographic Representation of Luxury Goods Market

To get information on various segments, share your queries with us



The research report provides detailed market analysis and focuses on key aspects such as competitive landscape, distribution channel, and leading product types. Besides this, the report offers insights into the luxury goods market trends and highlights key industry developments. In addition to the aforementioned factors, the free sample of the report encompasses several factors that have contributed to the market's growth in recent years.


Report Scope & Segmentation 






















































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 4.7% during 2023-2030



Unit



Value (USD Billion)



 



By Product Type



  • Watches & Jewelry

  • Perfumes & Cosmetics

  • Clothing

  • Bags/Purses

  • Others



 



By End-user



  • Women

  • Men



 



By Distribution Channel



  • Online



  • Offline



Segmentation



North America (By Product Type, End-user, Distribution Channel, and Country)



  • U.S. (By Product Type)

  • Canada (By Product Type)

  • Mexico (By Product Type)


Europe (By Product Type, End-user, Distribution Channel, and Country)



  • Germany (By Product Type)

  • France (By Product Type)

  • Italy (By Product Type)

  • Spain (By Product Type)

  • U.K. (By Product Type)

  • Rest of Europe (By Product Type)


Asia Pacific (By Product Type, End-user, Distribution Channel, and Country)



  • China (By Product Type)

  • India (By Product Type)

  • Japan (By Product Type)

  • Australia (By Product Type)

  • Rest of Asia Pacific (By Product Type)


South America (By Product Type, End-user, Distribution Channel, and Country)



  • Brazil (By Product Type)

  • Argentina (By Product Type)

  • Rest of South America (By Product Type)


Middle East and Africa (By Product Type, End-user, Distribution Channel, and Country)



  • UAE (By Product Type)

  • South Africa (By Product Type)

  • Rest of Middle East & Africa (By Product Type)






Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 272.74 billion in 2022 and is projected to reach USD 392.40 billion by 2030.

In 2023, the global market value stood at USD 284.00 billion.

The global market is expected to grow at a CAGR of 4.7% during 2023-2030.

The clothing segment is expected to lead the market based on product type.

A rising number of wealthy population is a major factor driving the market growth.

LVMH, Richemont, Kering, and Estee Lauder are a few major players in the global market.

Asia Pacific held the highest market share in 2022.

The emergence of technology-embedded and eco-friendly products is expected to drive the product adoption.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2030
  • 2022
  • 2019-2021
  • 210

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X