Luxury Industry – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Luxury Industry size was estimated at USD 367,230 million in 2023 and is projected to reach USD 593,559.76 million in 2030 at a CAGR of 7.10 % during the forecast period 2024-2030.

The luxury industry encompasses a wide range of high-end products and services, including fashion, automobiles, jewellery, watches, travel, and hospitality. These goods are typically characterized by their superior craftsmanship, premium quality, exclusivity, and high price points. Luxury brands often evoke a sense of aspiration and status, targeting wealthy consumers who seek both superior product quality and a distinct identity through their purchases. As a result, the industry is deeply tied to notions of prestige, craftsmanship, and timelessness, with brand heritage often playing a significant role in consumer perceptions.

The scope of the luxury industry extends beyond tangible goods and into experiences. High-end travel, luxury real estate, private banking, and bespoke services have all become integral parts of the luxury landscape, catering to affluent consumers who prioritize personalized and exceptional service. The sector has evolved to meet the growing demand for unique, limited-edition products and experiences that reflect both status and individuality. Additionally, luxury goods are increasingly being marketed as investments, with many consumers seeing them as assets that retain or appreciate in value over time.

Trends in the luxury industry reflect broader shifts in consumer behaviour and technological advancements. Digital transformation has reshaped the way luxury brands engage with consumers, with e-commerce and social media playing pivotal roles in both marketing and sales. The rise of sustainable luxury is another notable trend, as younger affluent consumers place greater emphasis on ethical sourcing, environmental responsibility, and transparency in production processes. Brands are adapting by incorporating sustainability into their business models, offering eco-friendly products, and promoting their efforts to reduce their carbon footprint.

Several drivers are fuelling the growth of the luxury industry, including rising disposable incomes, the expanding middle class in emerging markets, and the increasing influence of social media. Affluent consumers in markets like China, India, and the Middle East are contributing significantly to global luxury consumption, while the desire for exclusive, one-of-a-kind items continues to drive demand. Additionally, changing social norms around wealth and success have led to a shift in how luxury is defined, with many consumers prioritizing experiences and personalized offerings over material possessions. This evolving landscape is shaping the future of luxury, as brands strive to remain relevant in an increasingly global and digitally connected marketplace.

Delvens Industry Expert's Standpoint

Experts in the Luxury Industry highlight several key trends driving growth and innovation. The luxury industry encompasses a wide range of high-end products and services, from fashion and automobiles to travel and real estate, catering to affluent consumers who value quality, exclusivity, and status. It has expanded beyond tangible goods to include personalized experiences, with a growing focus on sustainability and digital engagement. Driven by rising disposable incomes, particularly in emerging markets, and the increasing influence of social media, the industry is evolving to meet demand for unique, high-value offerings. As consumer preferences shift towards experiences and ethical practices, luxury brands are adapting to stay relevant in a competitive, globally connected marketplace.

Market Portfolio

Key Findings

• The apparel segment accounted for approximately 26.5% of global luxury market revenue in 2023, with factors like continuous product innovation, evolving fashion trends, and targeted marketing initiatives driving its dominance. For example, Louis Vuitton’s launch of pop-up stores and activations for its Spring-Summer 2024 Men’s Collection in key cities such as Paris, Seoul, Miami, London, Los Angeles, and New York highlighted the brand’s strategy to engage consumers globally. The digitalization of the fashion industry, particularly the rise of e-commerce platforms, has allowed luxury apparel brands to reach a wider audience. Social media has further amplified this, serving as an essential tool for brands to connect with consumers and strengthen brand awareness.

• The handbags segment is forecast to grow at a CAGR of 8.2% from 2024 to 2030. Handbags, once purely functional items, have become powerful status symbols and reflections of personal style. This transformation is particularly evident in emerging markets, where rising disposable incomes and aspirational buying tendencies are driving demand. Alongside established luxury brands, new designers and niche players are entering the market, offering unique designs and craftsmanship that cater to consumers seeking exclusivity and individuality. As a result, the luxury handbag market is becoming more diverse, with both new and traditional brands benefiting from a growing consumer base.

• The perfumes and cosmetics segment is expected to grow at a CAGR of 7.0% from 2024 to 2030. This growth is largely fuelled by changing consumer preferences, with Gen Z and millennials increasingly shaping the luxury beauty market. These younger consumers, who tend to prioritize personalized and experiential products, are driving brands to offer customized offerings and immersive shopping experiences. According to data, a significant portion of luxury beauty consumers are under 33, with platforms like Pinterest reporting that 68% of their luxury audience is within this age group. The expansion of luxury beauty brands into emerging markets also contributes to the segment's growth, as demonstrated by Chanel’s opening of a new fragrance and beauty boutique in Mumbai, India, in January 2024.

• The jewellery segment is projected to grow at a CAGR of 7.98% from 2024 to 2030, driven by rising disposable incomes and the growing presence of female self-purchasers. The demand for branded and customized luxury jewellery, as well as the symbolic value attached to these pieces, continues to grow. The increasing prominence of e-commerce has also made luxury jewellery more accessible to a global audience, further fuelling market expansion. A notable example is the October 2023 collaboration between Butcherer Fine Jewellery and luxury e-commerce platform Mytheresa, offering an exclusive selection of its high-end jewellery collection. This partnership underscores the importance of online retail in expanding the reach of luxury jewelry brands and catering to a broader consumer base.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia pacific region is projected to hold the largest market share. Factors such as Rising disposable incomes, growing number of high-net-worth individuals, increasing demand for exclusivity, expanding emerging markets, shift toward experience-based luxury, digital transformation and e-commerce growth, emphasis on sustainability and ethical practices, influence of social media and influencers have triggered the Luxury Industry in the region.

Regional Analysis

Asia pacific region to Dominate the Market

• The North American luxury goods market is projected to grow at a compound annual growth rate (CAGR) of 6.9% from 2024 to 2030. The region is home to a large, fashion-forward consumer base with high purchasing power, who actively track trends in personal accessories such as clothing, handbags, watches, and jewellery. Social media influencers play a key role in promoting new luxury collections, helping brands reach and engage customers while shaping their purchasing decisions. Consumers are drawn to luxury items for their distinctive designs, durability, comfort, and aesthetics, which set them apart from fast-fashion alternatives. North America also benefits from an extensive network of single-brand and multi-brand stores located in airports and shopping centres, offering affluent buyers a wide variety of options from both local and international luxury brands.

• In 2023, the luxury goods market in the Asia Pacific region represented 38.7% of global revenue, with the growing number of high-net-worth individuals playing a key role in this market expansion. According to the Knight Frank Wealth Report, the billionaire population in Asia Pacific is projected to grow at a faster pace than the global average over the next five years, with an anticipated increase of 39.7%, compared to the global growth rate of 36.7%. By 2026, it is expected that more than one-third of the world’s billionaires will be based in the APAC region, reflecting the ongoing shift of wealth toward the east. In response, luxury brands have been rapidly increasing their presence in Asia Pacific, opening flagship stores in major cities and forging local partnerships with designers and brands. This strategy helps strengthen brand recognition and cultivate a loyal customer base in the region. A notable example is Gioia, a premium leather goods brand, which opened its flagship store in Mumbai, India, in August 2023, offering a range of high-end handbags and accessories.

Competitive Landscape

• LVMH Group
• Chanel LTD
• Burberry Group PLC
• Prada S.p.A
• Kering SA
• Coty Inc.
• Estée Lauder Companies Inc.
• Shiseido Company, Limited
• L'Oréal S.A.
• Hermès International S.A.
• Audemars Piguet Holding SA
• PATEK PHILIPPE SA
• Rolex SA
• Omega
• RALPH LAUREN
• Richemont S.A.
• Swarovski
• Pandora Inc.
• Hugo Boss AG

Recent Developments

• In January 2024, Miu Miu, a subsidiary of Prada, introduced its fourth limited-edition collection of upcycled bags, titled “Miu Miu Upcycled: Denim and Patch” bags. This collection continues the brand’s commitment to sustainability by reimagining denim and other materials into high-fashion, eco-conscious accessories. Miu Miu’s efforts in upcycling align with broader industry trends that emphasize environmental responsibility while maintaining a focus on exclusive and luxury designs.

• In September 2023, Richemont SA unveiled a new venture into the beauty industry with the launch of Laboratoire de Haute Parfumerie et Beauté, a high-end division dedicated to luxury fragrances and beauty products. This move marks Richemont’s strategic expansion beyond traditional luxury goods, further diversifying its portfolio and tapping into the growing demand for premium beauty offerings. The establishment of this division demonstrates Richemont’s ongoing efforts to strengthen its presence in the competitive luxury beauty market.

• Also in September 2023, Ralph Lauren expanded its footprint in Canada by opening its first brick-and-mortar luxury store in the country, accompanied by the launch of a dedicated e-commerce platform. This move reflects Ralph Lauren’s strategy to broaden its reach and better serve its Canadian clientele, offering both in-store experiences and online shopping for a seamless, luxury customer journey. The expansion underscores the brand’s commitment to growing its presence in key global markets.

• In June 2023, Kering Beauté, the beauty division of luxury conglomerate Kering, announced its acquisition of Creed, a prestigious and heritage-rich fragrance house. This acquisition is part of Kering's broader strategy to strengthen its position in the high-end beauty and fragrance sector, complementing its existing luxury offerings. The addition of Creed enhances Kering's portfolio and bolsters its presence in the premium fragrance market, aligning with the industry's growing focus on high-quality, niche beauty brands

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
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• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope