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

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.