USD 230.05 billion
Luxury Goods Market Size, Share, Growth Analysis, By Product(Watches & Jewellery, Perfumes &Cosmetics, Clothing, Bags/Purses), By End-User(Men, Women), By Distribution Channel(Offline, Online), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25S2019 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
90
|Figures:
76
Luxury Goods Market Insights
Luxury Goods Market size was valued at USD 230.05 billion in 2019 and is poised to grow from USD 242.8 billion in 2023 to USD 369.8 billion by 2031, growing at a CAGR of 5.4% in the forecast period (2024-2031).
Premium goods play a significant role in displaying the status symbol. Only a small portion of the world's population can buy such products because. Due to the fact that the price of the product is typically not a decisive issue for such people, and instead the distinctiveness and prestige of the product are the main elements influencing their purchase, businesses are therefore focusing their creative designs on an affluent demographic. For instance, Garmin International, Inc. unveiled its opulent MARQ Golfer smartwatch in June 2020. This is comprised of high-quality components, including a 46 mm titanium casing and a ceramic bezel with specially engraved marks for the 1–18 golf holes. In addition, the watch has PlaysLike Distance, Hazard View, and Virtual Caddie features that will improve the golfer's performance.
In 2020, the income levels of the working groups changed as a result of job losses and reduced income level because of Covid Pandemic. It left a negative impact on the luxury goods market for at least 2 years. In a same vein, stay-at-home orders reduced the requirement to buy such expensive goods. The lockdown also resulted in the cancellation or postponement of a number of celebrations and events with a fashion theme, which had an effect on the demand for these kinds of products. Additionally, the cancellation of tours and vacations had a detrimental effect on the purchase of such goods while travelling, such as those bought in duty-free stores in airports or on cruises. For instance, according to LVMH's financial results for the first half of 2020, which were published in July 2020, the pandemic caused a reduction in revenue generation across all luxury goods categories in 2019. According to the same source, the company's revenue from the watches & jewellery area plummeted by 38% over the same period in 2019 while revenue from the fragrances & cosmetics segment fell by roughly 29%. However, because of the closing of retail stores, it was stated that online purchases received favourable feedback from customers. As a result, in the near future, the worldwide market for personal luxury products is likely to regain momentum through online channels, and the removal of lockdown limitations would help this happen.
US Luxury Goods Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Bags/ Purses
Fastest Growth
Perfumes/Cosmetics
Growth Rate
5.4% CAGR
Global Luxury Goods Market, 2021-2028 ($ Bn)
Country Share for Europe Region- 2021 (%)
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Luxury Goods Market Segmental Analysis
Global Luxury Goods Market is segmented based on product, end-user, distribution channel and region. Based on the product, the Luxury Goods Market is segmented into watches & jewelry, perfumes & cosmetics, clothing, bags/purses, and others. Based on the end-user, the global luxury goods market is segmented men and women. Based on the distribution channel, the Luxury Goods Market is divided into offline and online. Based on region, it is categorized into North America, Europe, Asia-Pacific, South America, and MEA.
Luxury Goods Market Analysis by Product
On the basis of product type, the luxury goods market is segmented as watches & jewelry, perfumes &cosmetics, clothing, bags/purses, and others. The market is divided into categories based on the type of product: apparel, bags/purses, cosmetics, watches & jewelry, fragrances & cosmetics, and others. Due to the growing demand from both male and female end users as well as the quickly evolving fashion trends, the clothing segment is anticipated to hold a significant proportion of the market. However, due to the rising demand, particularly for products made of leather, the bags segment is predicted to rise quickly in the global luxury goods market.
Today, end-user demand for stylish handbags that match is rising. These handbags can be used for a variety of purposes, including office bags, parties, or casual bags depending on the situation. For instance, the luxury company Loewe introduced their Balloon bag in February 2020. It was made accessible in all three sizes, small, medium, and big, depending on consumer needs. Due to the rising demand for sophisticated luxury watches and a variety of jewelry goods, the watches and jewelry category is anticipated to hold a sizable part of the market. For instance, according to a report from Savills Global Luxury Retail 2019 Outlook, the proportion of new jewelry stores launched climbed from roughly 10% in 2017 to 13% in 2018. The other segment consists of goods like footwear and eyewear, which are anticipated to grow in popularity as a result of the release of new product designs on the market.
Luxury Goods Market Analysis by End-User
Based on end-user, the luxury goods market is segmented into men and women. Women end-users make up a large portion of the market for most luxury goods, including cosmetics, fragrances, handbags, necklaces, earrings, and bracelets.
However, new trends in men's grooming would encourage the expansion of the male luxury goods market, increasing demand for branded shirts, designer eyewear, and expensive timepieces. As a result, several players are concentrating on releasing goods that can satisfy the various needs of both end users. For instance, OMEGA debuted a new line of upscale eyewear in January 2020 that includes many shades appropriate for both men and women.
Global Luxury Goods Market By Ingredients , 2021(%)
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Luxury Goods Market Regional Insights
Geographically, Europe is dominating the global luxury goods market. In 2019, Europe generated a revenue of SD 103.86 billion thanks to a strong presence of vast number of major companies, including L'Oréal, LVMH, Burberry, and others. For instance, according to the Savills Global Luxury Retail 2019 Outlook study, London was the top city globally, accounting for 9.6% of new luxury shop openings worldwide in 2018. When compared to 2017, it grew by roughly 38%. According to the same source, Paris came in at number four on the list and contributed 4.7 percent in 2018. A considerable number of luxury fashion weeks are also hosted in nations like Italy, France, and the United Kingdom due to Europe's status as a global fashion powerhouse, which is further expected to spur market expansion. Furthermore, the populace in this area has a strong preference for attractive clothing and accessories, which has fueled the market's expansion.
North America luxury goods market is distinguished by the rising number of wealthy individuals, mostly in the U.S., who have fueled the demand for the products. For instance, according to the Institute for Policy Studies' estimate titled "Billionaire-Bonanza-2020," the number of billionaires in the United States climbed from 298 in 2000 to around 614 in 2020.
Asia Pacific market is expected to expand quickly because the middle-class population in the region is expected to have more discretionary income in the future. Similar to this, more access to luxury brands from around the world would result in higher product consumption. For instance, in July 2020, The British luxury goods giant Burberry announced a partnership with Tencent and the opening of its first social retail store in Shenzhen for Chinese customers. The store's approximate 539 sqm/5800 sqft size includes ten rooms that provide a variety of interactive, tailored retailing experiences. A growing number of professional women in the area have also increased the purchase of luxury goods geared at women, such as purses, designer shoes, and jewellery items, thanks to their rising discretionary income.
As the urban population rises in nations like Brazil and Chile, the South American market is projected to expand steadily. Therefore, it is anticipated that changes in the level of living will increase consumer spending on luxury brands in the area.
Global Luxury Goods Market By Geography, 2021 - 2028
- Largest
- Fastest
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Luxury Goods Market Dynamics
Luxury Goods Market Driver
Increased Wealthy Population Will Support Market Expansion
- As the name implies, luxury goods are primarily products that the wealthy segment of the population explores. Thus, an increase in the number of wealthy people is expected to fuel the expansion of luxury goods market. For instance, according to data from Oxfam International released in January 2020, there are around 2,153 billionaires in existence worldwide who are wealthier than the 4.6 billion individuals who make up 60% of the world's population. To capture the attention of the millennial and Gen Z generation, businesses are tailoring their product offerings. For instance, Louis Vuitton offers the option for customers to hand-paint or add a hot stamp to their handbags. Therefore, the market's expansion would be supported by the wealthy population's rising desire for high-end fashion goods.
Increased Awareness Toward Sustainable Products to Provide Opportunities for Growth
- Global luxury goods market is embracing the sustainability trend and promoting the use of eco-friendly raw materials and prudent energy management. Instead of using leather products made from animals, manufacturers have started utilizing a plant-based leather, such as that made from pineapple and other organic resources. For instance, in June 2020, the luxury goods shop Vikki Jones introduced its new range of eco-friendly tote bags made entirely of vegan leather, assuring that no animals were injured during production.
- In addition, it is emphasized that safer raw materials, less water, and less electricity should be used throughout the supply chain. For instance, the Prada Group and the Crédit Agricole Group signed a Sustainability Linked Loan arrangement in November 2019. If Prada meets its sustainability goals, it will be able to lower interest rates on a five-year, 50-million-euro sustainability term loan. Among other things, the sustainability goals include using Re-Nylon (regenerated nylon) in product production and earning a LEED Gold or Platinum Certification for the company's retail locations. As a result, growing efforts to produce luxury items sustainably will probably increase demand for green goods.
Luxury Goods Market Restraint
Growing Use of Second-Hand and Counterfeit Branded Items to Suppress Demand
- Global luxury goods market is anticipated to be hampered by a rising trend of buying second- hand branded products or renting luxury items because these products are available for less money than they were originally priced. Similarly, the growing practice of counterfeiting, in which goods that resemble luxury brands are sold for less money, is anticipated to impede market expansion.
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Luxury Goods Market Competitive Landscape
Key players in the luxury goods market priorities tactics including partnerships and new product development to increase their market share. Due to their broad presence in most regional markets and excellent product portfolios, leading corporations hold a significant share. To strengthen their position in the market, luxury firms are concentrating on implementing a variety of initiatives, such as alliances, new product launches, and acquisitions. For instance, on December 11, 2020, L'Oréal and Prada S.p.A. inked a contract allowing L'Oréal to design, produce, and market luxury beauty products for Prada.
Luxury Goods Market Top Player's Company Profiles
- LVMH Moët Hennessy Louis Vuitton SE
- Kering SA
- Hermes International SA
- Chanel SA
- Richemont SA
- The Swatch Group Ltd.
- Burberry Group plc
- Prada S.p.A.
- Giorgio Armani S.p.A.
- Ralph Lauren Corporation
- Tiffany & Co.
- Cartier International SNC
- Salvatore Ferragamo S.p.A.
- Christian Dior SE
- Tod's S.p.A.
- Versace S.p.A.
- Michael Kors Holdings Limited
- Coach Inc.
- Ferragamo S.p.A.
- Loro Piana S.p.A.
Luxury Goods Market Recent Developments
- In January 2021, LVMH Moët Hennessy Louis Vuitton SE, the world’s leading luxury products group, announced that it has completed the acquisition of the global luxury jeweller, Tiffany & Co.
- In March 2022, Shiseido to launch new clean beauty brand Ulé as part of skin beauty push to its clean beauty portfolio. It plans to grow its skin beauty portfolio to account for 75% of total sale in 2022.
- In April 2022, Luxottica undertook acquisition of 90.9% of Giorgio Fedon to enter the packaging and eyeglass cases industry
Luxury Goods Key Market Trends
- Trend of embedded products is going strong in the current luxury goods market.
- Innovatively designed and stylish products that incorporate technological components into accessories like jewelry, handbags, or goggles are likely to increase product demand. For instance, in April 2019, the smart jewelry company Totwoo Fashion Technology Co., Ltd. introduced the "Wonderland" collection, which features socially interactive wearable technology pendants with intelligent cores. The core is used to transmit data via Bluetooth from jewelry to mobile applications.
- Similar to this, Totwoo debuted its 'Morse Code Series' collection in 2020, which is geared toward couples and features Morse code rhythm necklaces that alert the other person whenever the first person taps his or her necklace. Long-distance remote sensing (Love rhythm), love code pair conversation, step tracking, phone notification, personalized alert, and private diary are among the other functions of the necklace. Therefore, the introduction of premium smart products is anticipated to increase demand for those products.
Luxury Goods Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global luxury goods market analysis, increased wealthy population, increased awareness toward sustainable products, rising demand for such innovative and advanced skincare technologies and products and increased disposable incomes are some major factors driving the growth of the global luxury goods market.
| Report Metric | Details |
|---|---|
| Market size value in 2019 | USD 230.05 billion |
| Market size value in 2031 | USD 369.8 billion |
| Growth Rate | 5.4% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Luxury Goods Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Luxury Goods Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Luxury Goods Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Luxury Goods Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Luxury Goods Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Luxury Goods Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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