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

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.