Luxury Goods Market Size, Share, Growth Analysis, By Product (Watches and Jewellery, Perfumes and Cosmetics), By End User, By Distribution Channel, By Region - Industry Forecast 2025-2032

Global Luxury Goods Market size was valued at USD 238.5 billion in 2022 and is poised to grow from USD 252.7 billion in 2023 to USD 390.8 billion by 2031, growing at a CAGR of 5.6% during the forecast period (2024-2031).

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. 'LVMH Moët Hennessy Louis Vuitton SE (France) ', 'Kering SA (France) ', 'Hermes International SA (France) ', 'Chanel SA (France) ', 'Richemont SA (Switzerland) ', 'The Swatch Group Ltd. (Switzerland) ', 'Burberry Group plc (United Kingdom) ', 'Prada S.p.A. (Italy) ', 'Giorgio Armani S.p.A. (Italy) ', 'Ralph Lauren Corporation (United States) ', 'Tiffany & Co. (United States) ', 'Cartier International SNC (France) ', 'Salvatore Ferragamo S.p.A. (Italy) ', 'Christian Dior SE (France) ', 'Tod's S.p.A. (Italy) ', 'Versace S.p.A. (Italy) ', 'Michael Kors Holdings Limited (United States) ', 'Coach Inc. (United States) ', 'Ferragamo S.p.A. (Italy) ', 'Loro Piana S.p.A. (Italy)'

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.

Trend of embedded products is going strong in the current luxury goods market.

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.