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Big Boom Foreseen for Global Luxury Goods

Such spending shifting to focusing on “less but better” items.

Published

2 years ago

July 6, 2023

INSTORE Staff

PHOTOGRAPHY: Tupungato/iStock.com

The personal luxury goods market is likely to double this decade, a recent study by Bain & Company and Altagamma found. Specifically, they forecast such spending to reach roughly $580-$620 billion by 2030, more than twice its size in 2020.

Other major findings from the study include:

The personal luxury goods market posted a record year in 2022, reaching a market value of just under $377 billion, despite geopolitical tensions and macroeconomic uncertainty, and that momentum persisted into the first quarter of 2023, achieving 9-11 percent growth over the year prior.
Luxury shopping in the US is slowing down, due to economic uncertainties, while Europe is on the rise, thanks to tourism—though this could change in the second half of 2023.
Top-performing categories include watches and jewelry as customers look for “less but better” purchases.
Key challenges for the industry in the midterm are linked to environmental, social and governance (ESG) regulatory pressures as well as the impact of generative AI and new technologies on all steps of the value chain .

“The luxury industry is experiencing a new phase after its post-pandemic growth, with renewed drivers of resilience establishing winners and losers,” said Claudia D’Arpizio, leader of Bain’s Global Luxury Goods and Fashion practice, the lead author of the study. “Brands who want to succeed need to focus holistically on consumers; balance their exposure across geographies; offer a high value proposition with elevated entry clienteling and experientiality at scale; and push on icons, timeless and statement pieces.”

Click here for more from Bain & Company’s “Luxury Goods Worldwide Market Study – Spring 2023,” which was presented with Altagamma, the Italian luxury goods manufacturers’ industry association.

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