Luxury Goods Market Expected to Reach $447.3 Billion by 2033

According to a new report published by Allied Market Research, titled, “luxury goods market" was valued at $328.1 billion in 2023, and is projected to reach $447.3 billion by 2033, growing at a CAGR of 3.2% from 2024 to 2033.

Luxury goods market trends such as a rise in disposable income, upgradation in consumer lifestyle, and inclination towards exquisite jewelry, watches, designer apparel, leather goods, and other merchandise have boosted the demand for luxury goods. The designer apparel segment dominated the global market in 2023 and is expected to maintain this trend in the future.

The luxury goods industry comprises products of superior quality and high value. Developing countries such as India, Japan, China, and South Korea are anticipated to exhibit an increase in demand for luxury goods, owing to increased disposable income and rise in living standards. Manufacturers' focus on developing elegantly designed and affordable products for upper-middle and upper-class customers is expected to propel luxury goods market growth. luxury goods market segmentation includes product type, mode of sale, and gender.

Based on product type, the global luxury goods market is segmented into designer apparel & footwear, jewelry, accessories, cosmetics & beauty products, fine wines/champagne & spirits, travel goods, and others. The other segment includes luxury products such as writing instruments and electronic gadgets.  The growth of the tourism industry and travel retail is expected to boost the sales of products in the luxury travel goods segment. In developing regions such as Asia-Pacific and LAMEA, higher demand for luxury goods and accessories is anticipated owing to the higher tourism rate and evolving luxury goods market demand.

The mode of sale is either retail or online. The retail sector is the major channel in terms of revenue generation that includes physical stores, flagship stores, brand outlets, retail shops, and others. It accounted for around 90% share of the global market revenue in 2023 as it is the most approachable and preferred mode among consumers. However, the online sales segment is anticipated to grow at the highest CAGR during the forecast period due to improvements in various digital platforms and increasing e-commerce websites in various regions.

Traditionally, beauty products, cosmetics, accessories, and designer apparel were majorly used by women. However, these products are gradually gaining popularity among men as well. Luxury travel goods, designer apparel, and other products are largely used by men owing to the change in spending habits and improved shopping experiences. Females account for more than 65% share in the global luxury goods market while the share of male customers is comparatively lower. However, the male consumers segment is anticipated to grow at the highest CAGR of 4.6% during the forecast period which is expected to create more luxury goods market opportunities in the upcoming years. 

In the year 2023, Europe and Asia-Pacific collectively accounted for nearly two-thirds of the worldwide luxury goods market size and are expected to maintain their dominant position throughout the forecast period. However, Asia-Pacific is projected to be the fastest-growing region, followed by LAMEA.

Key findings of the Luxury Goods Market Study

• The other segment in product type is expected to witness the highest CAGR of 6.0%.
• Designer apparel and luxury jewelry segment together accounted for more than half of the luxury goods market share in 2023.
• Females accounted for the highest market share in 2023, however, the male segment is expected to register the highest growth.
• Asia-Pacific is estimated to witness significant growth during the forecast period with China and Japan being the major stakeholders.
• In the year 2023, the U.S. led the global demand in the luxury goods market.

The report provides a comprehensive luxury goods market analysis of the key players that operate in the global Luxury Goods Market such as The Estee Lauder Companies Inc., LOral International, LVMH Group, Kering SA, The Shiseido Company, Ltd., Prada S.p.A., Ralph Lauren Corporation, Swatch Group, Luxottica Group S.p.A, and Compagnie Financire Richemont SA. These players occupy a major share in the luxury goods market followed by other tier 2 and tier 3 players worldwide.