NEW YORK, USA, January 22, 2025 (Globe Newswire) — The luxury goods market includes a wide range of luxury products, including fashion, accessories, cosmetics, jewelry, and more. Luxury products are characterized by top quality, exclusivity and strong brand reputation. This market is primarily driven by rising disposable income, growing affluent population, and evolving consumer preferences for premium experiences.
In recent years, the market has seen a significant increase in demand due to a noticeable shift to online retail channels that increase the accessibility of luxury goods. This digital transformation allows consumers to purchase luxury goods from the comfort of their home, expanding their customer base and influencing market trends.
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market dynamics
Increasing affluence in a growing economy accelerates consumption of luxury goods
The growing affluence of emerging economies is driving a surge in luxury consumption, especially in regions such as Asia-Pacific, Africa, and Latin America. Rising disposable incomes and a growing middle class are reshaping consumer demand, with countries like China increasing spending on premium products.
According to the World Bank, economic growth in these regions is directly correlated with rising purchasing power, and the IMF notes that this trend is expected to accelerate further. Luxury brands are responding by focusing on sustainability and innovation and customizing their products to appeal to these newly affluent consumers.
Major brands such as LVMH and Kering are reporting strong sales growth in Asia and are emphasizing investment in these markets as central to their growth strategies. With continued economic development, consumption of luxury goods is expected to increase, supported by increasing consumer desire for luxury goods.
Increased purchasing power of Millennials and Gen Z creates new opportunities
The rising purchasing power of Millennials and Gen Z is reshaping luxury consumption as these generations prioritize authenticity, social responsibility, and digital engagement.
Accenture research reveals that more than 60% of millennials prefer brands that demonstrate social responsibility, encouraging luxury brands to adopt sustainable practices such as green sourcing and circular production. I did. Social media platforms, especially Instagram and TikTok, play an important role, with 70% of young consumers following luxury brands, according to the Luxury Institute.
This change has led brands to embrace experiential marketing and influencer marketing.
Additionally, a personalized shopping experience is critical as brands leverage technology to provide tailored recommendations. Leading brands such as Burberry and Gucci exemplify this approach, increasing engagement through digital innovation, limited edition collections and collaborations that resonate with young audiences.
regional analysis
North America is expected to maintain its position as a dominant player in the global luxury goods market. According to the American Apparel and Footwear Association (AAFA), the region benefits from a high concentration of affluent consumers, which translates into significant purchasing power for luxury goods.
Metropolitan areas such as New York, Los Angeles, and Miami serve as important hubs for luxury retail and are home to many flagship stores from iconic brands. The cultural influence and strong retail infrastructure of these cities provides luxury brands with a solid foundation to engage with local and international consumers.
Additionally, the growing popularity of experiential luxury, such as personalized services, special events, and luxury travel experiences, has been recognized by the U.S. Travel Association, with luxury travel spending contributing significantly to overall growth in the North American luxury sector. It is shown that .
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Main highlights
The global luxury goods market size was valued at USD 327.52 billion in 2024 and is projected to reach an estimated value of USD 480.54 billion by 2033, increasing by 6.6 billion during the forecast period (2025-2033). Shows a CAGR of %. The luxury goods market is segmented into fashion and apparel, accessories, beauty and personal care products, household goods, etc. The fashion and apparel sector accounts for the largest market share. The global luxury goods market is categorized by age group into Millennials, Generation X, and Baby Boomers. The millennial segment is expected to capture the highest market share and is estimated to exhibit a CAGR of XXX% during the forecast period. By gender, the luxury goods market is divided into male and female consumers. The female segment accounts for the largest share in purchasing luxury goods. By occasion, the market is segmented on the basis of everyday luxury goods, gifts, and special occasions. The Everyday Luxury segment is expected to be a significant revenue driver. By distribution channel, the luxury goods market is segmented into online retail, luxury brand boutiques, department stores, luxury e-commerce platforms, and outlets. Asia Pacific is the largest shareholder in the global luxury goods market, with the online retail sector expected to be the largest revenue contributor.
competitive player
LVMH Moët Hennessy Louis Vuitton Kering Grichemont Chanel SA Hermes International Prada SpAB Burberry Group Dior Segianni Versace Tiffany & Co. Fendi Balenciaga Salvatore Ferragamo Valentino Mont Blanc
Recent trends
October 2024 – LVMH signs a major 10-year sponsorship deal with F1 that could be worth close to $1 billion. The deal will see TAG Heuer replace Rolex as F1’s official timekeeper, and Louis Vuitton will create trophy cases for the race. This partnership aims to increase LVMH’s brand awareness and strengthen its position in the luxury market by targeting a diverse audience around the world.
Analyst opinion
According to our analysis, the global luxury goods market is experiencing strong growth driven by rising disposable income, evolving consumer behavior and new demand for premium luxury experiences, especially in the post-pandemic situation. Wealthy consumers and high-net-worth individuals are increasingly attracted to premium brands known for exclusivity, craftsmanship, and heritage.
The Asia-Pacific region, and China in particular, is rapidly emerging as a dominant player due to its expanding affluent population and growing desire for luxury goods. Additionally, sustainability and ethical practices are becoming critically important as consumers increasingly prefer brands that prioritize transparency and responsibility in their practices.
Despite this positive outlook, the luxury goods market faces challenges including economic fluctuations and rapidly changing consumer preferences. These factors highlight the need for luxury brands to continually innovate and adapt in order to remain relevant and attractive.
segmentation
By product
Fashion and Apparel Accessories Beauty and Personal Care Products Household Products Others
By age group
Millennials Generation X Baby Boomers
By gender
By distribution channel
Online retail luxury brand boutique department store luxury e-commerce platform outlet
by opportunity
Luxurious gifts for every day and special occasions
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