Published on: August 08, 2024
The luxury goods market is a niche segment catering to a small global population of affluent consumers who prioritize quality, exclusivity, and status symbols. This market includes categories such as watches and jewellery, fragrances and cosmetics, and high-end fashion items like handbags, jackets, and footwear. Brands such as LVMH, OMEGA, and Loewe epitomize this sector with their emphasis on creative designs, excellent craftsmanship, and high durability, often commanding the highest prices in their respective categories.
The personal luxury goods market is estimated to grow at a CAGR of 2.7% between 2022 and 2027, driven by increasing disposable incomes among the wealthy population globally. However, the COVID-19 pandemic introduced significant challenges, disrupting traditional revenue channels like retail stores and duty-free shops at airports and cruises. Online purchases surged during lockdowns, compensating for reduced foot traffic in physical stores.
Key trends shaping the luxury goods market include a growing preference for sustainability and innovation. Consumers, particularly millennials, are gravitating towards products made from natural and eco-friendly materials such as plant-based leather derived from pineapple. Luxury brands are responding with initiatives like high-end solar watches and sustainable production practices that consume lower electricity and water while using safer raw materials.
The luxury goods market faces challenges such as the impact of economic downturns on consumer spending habits. The pandemic exacerbated this issue, leading to negative demand for non-essential luxury items among low-income groups facing job losses and salary reductions. Additionally, the growing trend of second-hand items poses a threat to the exclusivity and revenue generation of original luxury products, fueled by the lower cost and increasing acceptance of pre-owned goods.
The luxury goods market is expected to evolve with a stronger focus on digital transformation and personalized customer experiences. Brands like Coach, with initiatives like Coachtopia, are pioneering luxury-fashion products that appeal to the younger demographic through customization options like hot stamping and hand-painting. Despite challenges like the growing counterfeiting trend, the market's resilience, coupled with innovative strategies and expanding consumer segments, suggests continued growth and adaptation in the luxury goods sector.
Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have explained the regional trends and drivers that shape the market during the forecast period.
The high per capita income and the rising disposable income of customers in Europe have resulted in an increased demand for personal luxury goods in the region. Therefore, vendors are offering personal luxury goods such as apparel, cosmetics, and hard luxury goods on their web portals as well as through third-party online sellers. This will propel the growth of the online personal luxury goods market in the region during the forecast period.
Technavio's luxury goods industry reports monitor the leading players in the global market along with their current and forecasted market share. Our analysis covers regional and global companies. Some of the top companies covered in our luxury goods market reports include:
In order to provide you with a comprehensive view of the luxury goods industry, our experts analyze the market from many different perspectives. Our reports help identify opportunities, risks, key competitors, and more, helping you make timely, informed decisions to optimize your position in the market.
Technavio reports insights include:
Develop a deeper understanding of the luxury goods market with Technavio’s comprehensive market research reports. We provide the latest information on key industry dynamics, including global and regional market forecasts, internal and external pressure points, the vendor landscape, and more.
Our in-depth knowledge of the luxury goods market is built on decades of experience and a global network of industry experts. We know the importance of having a strong foundation on which to base important decisions, and with over 500 analysts located around the world, we deliver actionable insights for every segment of the market.
Technavio’s market research reports provide an analysis of current trends and how they are affecting the market. We also identify market drivers and challenges to help you discover opportunities and avoid pitfalls.
Every Technavio report includes detailed segmentation insights, breaking down the market in terms of product type, geography, sales channels, and more. And if you’re looking for something a little more specific, our Custom Research Solutions can tailor any report to meet your unique needs.
We provide detailed profiles on the biggest competitors in the market, including data such as business divisions, product offerings, and news. Our reports also include an overview of the competitive landscape as a whole, including the risks and opportunities that it presents.
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