United States Luxury Goods Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)?

United States Luxury Goods Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)​

The United States luxury goods market is projected to grow at a CAGR of 5.14 % during the forecast period (2022 - 2027).

The demand for luxury goods in the United States is attributed to the widespread wealthy population with high income, willing to spend on high-end personal luxury accessories marketed by luxury brands. Further, the country has a well-established network of single-brand and multi-brand shops in airports, and shopping malls which allow affluent consumers to choose from diversified product offerings of regional and global luxury brands. Further, as more individuals prefer using premium and curated collections of apparel, and jewelry, curated fashion stores are increasingly expanding in the country to serve the evolving fashion needs of U.S. consumers.

In the medium term, the sales of luxury goods are anticipated to register substantial growth as key brands are directing their investment in digital marketing and partnering with e-commerce platforms to cater to the increasing number of online shoppers. Additionally, luxury fashion companies are tightening their brand values by not compromising on the quality of the products and instead, offering limited-time offers, deals, and discounts only on the purchase of a specific amount of clothing, fashion accessories, or beauty products on brand websites. This organic consumer engagement is anticipated to drive market growth during the forecast period.

Key Market TrendsHigh Prevalence of Fashion-Conscious Consumers

The United States exhibits a wider base of fashion-conscious customers with relatively high purchasing power than other countries, checking up with the new trend in the market in terms of personal accessories including apparel, bags, watches, and jewelry. Further, consumer behavior is highly inspired by social media influencers promoting the newly launched collections of luxury brands to attract potential buyers. Additionally, consumers are interested in luxury goods owing to their unique designs, durability, comfort, and aesthetics that sets them apart from fast fashion products. Also, the market is characterized by a higher degree of celebrity endorsement as millennials are inclined towards luxury brands that are being promoted by celebrities. For instance, in August 2022, Calvin Klein announced Son Heung-Min, the South Korean football player as a new brand ambassador.

Clothing and Apparel Segment Holds Prominent Share

The apparel and clothing segment grew rapidly over several years as people became more fashion-oriented, especially the young generations, and their increased purchasing power in the backdrop of the recent economic boom. Nowadays luxury brands are concentrating more on providing trendy fashionable clothes to look young to cater to this brands are coming up with street-style ready-to-wear apparel, and customized clothing, to attract consumers. Luxury athleisure is trending as the wellness economy is prospering with the rise of luxury gym wear, activewear, and sportswear in the United States market.

Further, post covid, people are practicing yoga, jogging, and spending more time in the gym not only to boost immunity but also to recover from stress, and depression and to stay healthy which in turn increased the sales of luxury yoga wear and gym wear in the region. Further, the increased number of Women Insta influencers on social media has given customized luxury products a new path in the market. For instance, Kerring’s brand Gucci declared that customers could design Gucci’s jackets, shoes, apparel, and bag then they can select their appliqués to put on to look the product aesthetic and unique. This service is available in their New York flagship stores and on their online website.

Competitive Landscape

The United States luxury goods market is highly competitive with the presence of various domestic and international players competing for a major share in the market. Key companies are focused on business expansion through mergers, acquisitions, and new products launched to sustain the brand image in a highly competitive market. Major players dominating the market include Giorgio Armani S.p.A., Rolex SA, Kering Group, PVH Corp., and The Swatch Group, among others. Further, key players conduct advertisement campaigns and exhibition shows to promote their brands and offerings, as these campaigns allow them to reach out to their targeted customer groups. For instance, Dior and Balenciaga are showcasing their new collections for 2022 at the Fashion Institute of Technology (FIT) Museum in New York City, ongoing until November 6.

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• The market estimate (ME) sheet in Excel format
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