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Luxury Goods - Global Market Trajectory & Analytics

  • ID: 1244796
  • Report
  • February 2022
  • Region: Global
  • 494 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • Burberry Group Plc
  • Gianni Versace S.r.l.
  • Hermès International S.A.
  • L’Oréal S.A.
  • Mulberry Group PLC
  • Ralph Lauren Corporation

Global Luxury Goods Market to Reach $296.9 Billion by 2026


Luxury goods are products that can be defined as a non-essential and expensive good or service purchased by wealthy consumers in the higher income bracket. Demand in the global luxury goods market is primarily driven by a rise in sales supported by growing affluence of people in several countries across the world. The global luxury goods industry is in a transformative stage, due to factors such as digital advancements, new technologies, increasing wealth of individuals, fluctuating currencies, changing marketing strategies of players and growing media influence. The popularity of e-commerce platforms for purchase of luxury goods is also expected to spur growth. Several luxury companies have been utilizing the current crisis for the development and execution of an omnichannel and online strategy. During the COVID-19 crisis, e-commerce has managed to attract new markets and customer segments in China, and a similar trend is also expected to be witnessed in other geographies. Further the pent-up demand for especially amongst Millennials and Generation Z customers is expected to positively impact the market in the post COVID period. Though online sales of luxury goods are increasingly cannibalizing physical store sales, brick and mortar sales are expected to continue contributing to a high share in the coming years.

Amid the COVID-19 crisis, the global market for Luxury Goods estimated at US$224.8 Billion in the year 2020, is projected to reach a revised size of US$296.9 Billion by 2026, growing at a CAGR of 4.8% over the analysis period. Apparel, one of the segments analyzed in the report, is projected to record a 6.2% CAGR and reach US$93.9 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Cosmetics & Perfumes segment is readjusted to a revised 5.1% CAGR for the next 7-year period. Global market for luxury apparel is significantly influenced by consumer spending levels and spending of high net worth consumers. The sales of luxury apparel are being fostered by the growing influence of social media platforms and rising sales through e-commerce channels.



The U.S. Market is Estimated at $51.2 Billion in 2021, While China is Forecast to Reach $31.6 Billion by 2026


The Luxury Goods market in the U.S. is estimated at US$51.2 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$31.6 Billion by the year 2026 trailing a CAGR of 6.7% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.8% and 5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.5% CAGR. Europe accounts for the largest regional market for all types of luxury goods. Italy and France especially are the major markets for luxury goods in the continent. The Middle East and Asian countries are currently showing immense potential for future growth. With increasing purchasing power of individuals and growing number of high net worth individuals, these two regions hold positive prospects for luxury goods market growth in future.

Watches & Jewelry Segment to Reach $58.2 Billion by 2026


Luxury watches market benefits from the product being perceived as a status symbol among wealthy adults. Increasing penchant for lifestyle products and growing prevalence of gift giving culture are also fueling sales of luxury watches. Popular brands in this segment include Rolex, Baume & Mercier, Cartier and Omega. In the global Watches & Jewelry segment, USA, Canada, Japan, China and Europe will drive the 3.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$34.2 Billion in the year 2020 will reach a projected size of US$44.5 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$8.5 Billion by the year 2026, while Latin America will expand at a 4.8% CAGR through the analysis period.

Select Competitors (Total 175 Featured) -

  • Burberry Group Plc
  • Chanel S.A.
  • Cie Financiere Richemont SA
  • Giorgio Armani SpA
  • Hermès International S.A.
  • Kering S.A.
  • L’Oréal S.A.
  • Luxottica Group S.p.A.
  • LVMH Moët Hennessy Louis Vuitton
  • Mulberry Group PLC
  • Prada S.p.A.
  • Ralph Lauren Corporation
  • Rolex SA
  • The Estée Lauder Companies Inc.
  • The Swatch Group Ltd.
  • Gianni Versace S.r.l.
Frequently Asked Questions about the Global Market for Luxury Goods

What is the estimated value of the Global Market for Luxury Goods?

The Global Market for Luxury Goods was estimated to be valued at $224.8 Billion in 2020.

What is the growth rate of the Global Market for Luxury Goods?

The growth rate of the Global Market for Luxury Goods is 4.7%, with an estimated value of $296.9 Billion by 2026.

What is the forecasted size of the Global Market for Luxury Goods?

The Global Market for Luxury Goods is estimated to be worth $296.9 Billion by 2026.

Who are the key companies in the Global Market for Luxury Goods?

Key companies in the Global Market for Luxury Goods include Burberry Group Plc, Chanel S.A., Cie Financiere Richemont SA, Giorgio Armani SpA, Hermès International S.A., Kering S.A., L’Oréal S.A., Luxottica Group S.p.A. and Mulberry Group PLC.
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Burberry Group Plc
  • Gianni Versace S.r.l.
  • Hermès International S.A.
  • L’Oréal S.A.
  • Mulberry Group PLC
  • Ralph Lauren Corporation

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Influencer Market Insights
  • World Market Trajectories
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • Luxury Brands Focus on Positive Contributions to Fight COVID-19
  • Changing Consumer Behavior to Impact Luxury Goods Market in Post Pandemic Period
  • Players Devise Digital Strategies to Stay Afloat During the Pandemic
  • Taking Steps to Deal with Unsold 2020 Inventory and Plan for 2021 Collections
  • COVID-19 Presents Significant Challenges to Luxury Brands and Wholesalers
  • Pandemic Crisis Weakens Economic Environment, Affecting Luxury Goods Market
  • World Economic Growth Projections (Real GDP, Annual % Change) for 2019, 2020 & 2021
  • An Introduction to Luxury Goods
  • Types of Luxury Goods
  • Global Market Prospects & Outlook
  • Competition
  • Global Luxury Goods Market Breakdown by Leading Competitors (in %) for 2019
  • Valuable Luxury Brands Worldwide: Ranked by Brand Value (in US$ Billion) for 2020E
  • COVID-19 Crisis Presents Opportunity to Acquire High-Potential Luxury Brands
  • Luxury Brands Differentiate Even in Digital Transition Efforts
  • Key Competitors in the Luxury Watches Domain
  • Swiss Watches Global Competitor Share Positioning for 2019
  • World Brands
  • Recent Market Activity
  • Luxury Goods – Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

  • Collapse of Global Travel & Tourism Industry Dents Prospects in Luxury Goods Market
  • COVID-19 Impact on Travel & Tourism Industry: Growth Rate (%) of Industry Revenues in Select Countries for 2020 Vs 2019
  • COVID-19 Impact on Tourism Industry: % Change in International Tourist Arrivals by Region for 2019 and Q1 2020
  • Countries with Maximum Vulnerability to COVID-19 Impact on Tourism Industry: Travel & Tourism Industry as % of GDP by Country for 2019
  • As Airlines Industry Struggles Amidst the COVID-19 Crisis, Impact Imminent on Airport Luxury Retail Sales
  • COVID-19 Pandemic Dents Airline Revenues: Commercial Airline Revenue Growth (in %) for 2010-2020E
  • Personal Incomes of People: A Critical Factor Influencing Market Prospects
  • High Net Worth Individuals and Changing Lifestyles Boost Luxury Goods Market
  • High Net Worth Individuals Influence Sales of Luxury Goods: Number of Ultra-High Net Worth Individuals (UHNWIs) by Region for 2019
  • Younger Generation & Millennials Redefine and Drive Growth in Luxury Market
  • Personal Luxury Goods Market by Generation (in %) for 2020E
  • Global Millennials Population Spread by Region: 2019
  • Millennial Population as a Percentage (%) of Total Population in Select Countries: 2019
  • Notable Trends Impacting Global Luxury Goods Industry
  • Affordable Luxury to Influence Market Outlook
  • Rising Sales of Second Hand Luxury Goods
  • Global Personal Luxury Goods Market by New Sales and Resale (in %) for 2019 and 2021
  • Role of Digital Technologies in Shaping the Luxury Goods Market
  • Augmented Reality Transforms Luxury Retail Experience
  • Artificial Intelligence: Playing a Critical Part in Personalizing Shopping Recommendations
  • Luxury Watches: A Strong Growth Driver for the Watch Market
  • Luxury Watch Market in the US: Percentage Breakdown of Value Sales by Product for 2019 and 2025
  • Luxury Wristwatches Market Set to Decline amidst COVID-19 Crisis
  • Swiss Watches: The Primary Luxury Watch Category
  • Global Swiss Watch Exports: Percentage Breakdown of Export Value by Region for 2019
  • Online Channels: A Possible Way Out for Luxury Watchmakers
  • Global Luxury Watch Market: Percentage Breakdown of Sales by Distribution Channel for 2019
  • Luxury Footwear Designers Gain Traction
  • Affordable Luxury: Not just an Oxymoron in Footwear Space
  • Luxury, Premium Fragrances: Key Segment in Overall Fragrances & Perfumes Market
  • Pandemic Hurts Prospects of Luxury Apparel Brands
  • Resale of Luxury Apparel Gains Momentum
  • E-Commerce Retail Spurs Sales of Luxury Goods
  • COVID-19 Driven Rise in E-Commerce Sales Benefit Luxury Goods Market: Global Retail E-Commerce Website Traffic in Average Monthly Visits (in Billions) for Jun-2019 to Jun-2020
  • Popular Luxury Brands Online: Percentage Share of Search Interest by Brand for 2020
  • Counterfeits: A Major Concern for the Luxury Goods Market

4. GLOBAL MARKET PERSPECTIVE


III. MARKET ANALYSIS

UNITED STATES

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • Market Overview
  • Luxury Watches Market: COVID-19 Brings to Halt the Segment’s Recovery
  • Number of Millionaire Households in the US (in Millions) by Wealth for 2019
  • Swiss Make Luxury Watches Remain the Top Choice
  • Competition
  • US Luxury Watches Market: Percentage Breakdown of Sales by Company (2019)
  • Footwear Commands Major Chunk of Luxury Fashion Spending Online
  • US Footwear Market: Breakdown of Average Annual Per Capita Spends on Footwear by Region (In US$) for 2020E
  • Luxury Shoe Club: A Trading Platform

CANADA

JAPAN

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
  • Japanese Watchmakers Make a Push to Capture Share of Luxury Watches Market

CHINA

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
  • COVID-19 Impact on Chinese Luxury Goods Industry
  • Major Factors and Trends Influencing the Luxury Goods Market in China
  • Apt Marketing Campaigns in Response to COVID-19
  • China’s Young and Affluent Consumers Lead Growth of Luxury Watch Market
  • Increasing Affluence of Chinese Individuals: Wealth per Adult in US$ for the Years 2002, 2006, 2010, 2014 and 2018
  • Consumer Behavior and Purchasing Patterns in China
  • Increasing Demand for Swiss Luxury Watches in China
  • Players Modify Strategies to Benefit from China’s Faster Economic Recovery

EUROPE

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • COVID-19 Pandemic Dents Prospects in European Luxury Goods Market
  • Pre-Owned Luxury Watches Market Gains Traction

FRANCE

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)

ITALY

  • COVID-19 Impact on the Italian Luxury Goods Industry
  • Assessing Supply Chain Disruptions Due to COVID-19 Crisis
  • Unrivalled Leader in Luxury Footwear

UNITED KINGDOM

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
  • Green and Luxury Footwear Gain Traction

SPAIN

RUSSIA

  • Luxury Footwear Gains Lost Ground

REST OF EUROPE

ASIA-PACIFIC

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)

AUSTRALIA

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2022 (E)

INDIA

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2022 (E)
  • Luxury Footwear Market Heads for Healthy Gains
  • Luxury Watches Market in India: An Overview
  • Popularity of Luxury Watches Rises among Affluent Indians

SOUTH KOREA


REST OF ASIA-PACIFIC

LATIN AMERICA

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2022 (E)

ARGENTINA


BRAZIL


MEXICO


REST OF LATIN AMERICA

MIDDLE EAST

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2022 (E)
  • Market Overview

IRAN


ISRAEL


SAUDI ARABIA

UNITED ARAB EMIRATES

  • Luxury Watches: A High Potential Market

REST OF MIDDLE EAST

AFRICA

  • Luxury Goods Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2022 (E)

IV. COMPETITION

  • Total Companies Profiled: 175
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Burberry Group Plc
  • Chanel S.A.
  • Cie Financiere Richemont SA
  • Giorgio Armani SpA
  • Hermès International S.A.
  • Kering S.A.
  • L’Oréal S.A.
  • Luxottica Group S.p.A.
  • LVMH Moët Hennessy Louis Vuitton
  • Mulberry Group PLC
  • Prada S.p.A.
  • Ralph Lauren Corporation
  • Rolex SA
  • The Estée Lauder Companies Inc.
  • The Swatch Group Ltd.
  • Gianni Versace S.r.l.
Note: Product cover images may vary from those shown