Luxury Goods Market By Product Type (Designer Apparels, Jewelry & Timepieces, Accessories, Cosmetics, Fine Wines/Champagne And Spirits, Travel Goods, Others) , By Mode of Sale (Retail, Online) By Gender (Male, Female) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Luxury Goods Market
The 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 are the expensive products desired by individuals that are not necessary for their livelihood. Various products considered luxury goods include fashion apparel, jewelry, accessories, cosmetics, automobiles, watches, and home goods. They are conventionally associated with renowned brands and superior craftsmanship. The ownership of luxury goods is often observed as a symbol of wealth and status.
Rise in disposable income of individuals, specifically the middle-class segment has fueled investments in luxury goods, driving the growth of the market. In addition, surge in desire among individuals to seek premium experiences propels the market development. Furthermore, increase in the popularity of e-commerce has enhanced accessibility, augmenting the growth of the luxury goods market. A notable trend emerging in the market is the adoption of circular economy model via assimilation of technology. Manufacturers are assigning digital IDs to their products to track sustainability throughout their lifecycle. This trend is notably gaining attention of consumers, garnering their trust, and reducing the risk associated with greenwashing of products.
However, upsurge in counterfeiting of products has disrupted the reputation of several brands, reducing the trust of consumers and hampering the development of the market. Moreover, the purchase of luxury goods remains highly susceptible to economic fluctuations and downturns, restraining the market growth considerably. On the contrary, the integration of AI algorithms into the operations of brands is anticipated to present lucrative opportunities for the luxury goods market. AI is assisting businesses with inventory management, counterfeit detection, virtual try-ons, and personalized marketing. For instance, Dior—a French fashion company—has explored the AI-powered augmented reality try-on technology for their products, allowing customers to endeavor accessories virtually. Therefore, the embracement of ingenious technologies is poised to open new avenues for the luxury goods market.
Segment ReviewThe luxury goods market is segmented into product type, mode of sale, gender, and region. On the basis of product type, the market is divided into designer apparels, jewelry & timepieces, accessories, cosmetics, fine wines/champagne & spirits, travel goods, and others. Depending on mode of sale, it is bifurcated into retail and online. As per gender, it is classified into male and female. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of product type, the designer apparels segment held a high share of the market in 2023.
Depending on mode of sale, the retail segment dominated the market in 2023.
As per gender, the female segment accounted for a high market share in 2023.
Region wise, Europe was the highest revenue generator in 2023.
Competition AnalysisThe leading players operating in the global luxury goods market include Compagnie Financire Richemont S.A., Shiseido Company, Limited, Prada S.p.A., Ralph Lauren Corporation, Kering SA, Luxottica Group S.p.A., The Estee Lauder Companies Inc., Swatch Group, and LVMH Group. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy Product TypeDesigner Apparels
Jewelry Timepieces
Accessories
Cosmetics
Fine Wines/Champagne And Spirits
Travel Goods
Others
By Mode Of SaleRetail
Online
By GenderMale
Female
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Thailand
Malaysia
Indonesia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA
Key Market PlayersCOMPAGNIE FINANCIRE RICHEMONT SA
SHISEIDO COMPANY, LIMITED
PRADA S.P.A.
LORAL INTERNATIONAL
RALPH LAUREN CORPORATION
KERING SA
LUXOTTICA GROUP S.P.A.
THE ESTEE LAUDER COMPANIES INC.
SWATCH GROUP
LVMH GROUP