The global luxury market is projected to grow by up to 12 percent in 2023, according to a new study released by Bain & Company and Altagamma, the Italian luxury goods manufacturers’ industry association.
Despite economic uncertainty, geopolitical tensions and the gradual emergence from the pandemic, the personal luxury goods market reported a record year in 2022 with a market value of EUR354bn. Further out to 2030, the personal luxury goods market could grow between EUR530 and EUR570bn, or around 2.5 times the size of the 2020 luxury market.
“The luxury industry is experiencing a new phase after its post-pandemic growth, with renewed drivers of resilience establishing winners and losers,” said Claudia D’Arpizio, a Bain & Company partner and leader of Bain’s Global Luxury Goods and Fashion practice.
Asia is experiencing a “reshuffling” with new luxury consumers on the rise. According to the report, Japan is the “rising star” in Asia as locals maintain spending and inbound tourists boost shopping. On the other hand, South Korea is seeing locals spending more overseas as travel retail accelerates, partly due to limited Chinese tourists in recent months.
Mainland China is expected to return in 2023, with some brands likely to see sales rise to pre-pandemic levels. With Hong Kong and Macau also returning as primary destinations for Chinese tourism, these markets have posted a swift acceleration in luxury consumption.
