Besides, the presence of a population that is highly inclined towards fashionable apparel and accessories has added impetus to the growth of the market in this region. How much is the luxury goods market worth? The global luxury goods market size was USD 316.16 billion in 2019 and is projected to grow from USD 257.26 billion in 2020 to USD 352.84 billion in 2027 at a CAGR of 4.6% in the 2020-2027 period. Inclination towards Sustainable Products to Offer Growth Opportunities. Websites devoted to a single brand gained ground on other types of online platforms and now make up 40% of the online segment, up from 30% in 2019. Read more about this report - REQUEST FREE SAMPLE COPY IN PDF Top companies hold a major market share due to their strong product portfolios and a wider reach in the majority of the regional markets. We use cookies to enhance your experience. Like Comment Share GRAFF 7,889 followers 2d Report this post . Bain & Company analyzes for Fondazione Altagamma the market and financial performance of more than 280 leading luxury goods companies and brands. The State of Fashion: Beauty. Learn more about how Statista can support your business. A rising number of wealthy people are therefore set to propel the growth of the market. The most likely outcome in the fourth quarter is a 1% year-over-year rise. The World's Watch Market | Chrono24 is the number one address for luxury watches. For instance, as per the report titled Billionaire-Bonanza-2020, published in April 2020 by the Institute for Policy Studies, the number of billionaires increased from 298 in 2000 to about 614 in 2020 in the U.S. The steepest recovery in 2021 belonged to personal luxury goods and furniture/housewares, now marginally ahead of 2019 levels. Beauty companies Este Lauder and L'Oral . Beauty recovered to 60 billion, just 1% below its 2019 levels. Therefore, the increasing demand for high-end fashion products from the rich population would support the market growth. The Americas posted solid growth, particularly in the US, where a new map of luxury is fast emerging with the increased importance of secondary cities and suburban areas. Luxury companies are distinct from most companies in a number of ways, especially in the relationship between desirability and price, so there are some important differences to be aware of. Full Report (83 pages) In 2022, the beauty marketdefined as skincare, fragrance, makeup, and haircaregenerated approximately $430 billion in revenue. After a 50% jump from 2019 to 2020, online continued to power on, growing by 27% from 2020 to 2021 to reach an estimated 62 billion in market value this year, thanks to accelerated adoption during the pandemic. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 1000+ markets in 190+ countries & territories, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. The blending of living and working spaces fueled resimercial growth, with consumers seeking increased comfort, functionality, and flexibility in design solutions. Shoes, accessories, and jewelry were the product categories that advanced most during the pandemic. We have also used bottom-up and top-down approaches to calculate the market size. LVMH is the worlds biggest luxury company and is valued at roughly $300 billion. For instance, as per the financial result of the first half of 2020 released in July 2020 by LVMH, revenue generation from all luxury product categories declined in 2020 due to the pandemic. LVMH Mot Hennessy-Louis Vuitton SA (Paris, France), Compagnie Financire Richemont SA (Geneva, Switzerland), Kering SA (Paris, France), Chow Tai Fook Jewellery Group Limited (Central, Hong Kong), The Este Lauder Companies Inc. (New York, U.S.), Luxottica Group SpA (Milan, Italy), The Swatch Group Ltd. (Biel / Bienne, Switzerland), LOral Group (Clichy, France), Ralph Lauren Corporation (New York, U.S.), Shiseido Company, Limited (Tokyo, Japan). This company is a multinational division of the German manufacturer Daimler AG, and the brand is used for luxury automobiles, buses, coaches, and trucks. Most brands are now covering multiple price points to respond to different customer segments and needs. Set to account for 40 percent of the global personal luxury goods market by 2035, gaining a share of Gen-Z spend is emerging as a critical growth lever for the luxury sector. This turbocharged recovery was enabled by profit-hunting programs rapidly launched during the crisis and by a sales rebound that favored higher-margin direct channels. LVMH the first European company to reach a market capitalization of $500 billion trades at 24 times estimated earnings, almost twice that of France's benchmark index. Market overview Financial performance Divisions Key company figures Competitors Editor's Picks Current statistics on this topic Luxury Goods Sales of the leading luxury goods. Europe Luxury Goods Market Size, 2019 (USD Billion), To get more information on the regional analysis of this market, Request a Free sample. Both LVMH and Kering have seen their luxury goods sales more than double. Luxury stocks dived this week. Based on the product type, the market is segmented as watches & jewelry, perfumes & cosmetics, clothing, bags/purses, and others. What are the key factors driving the market? Inquire Before Buying This Research Report: https://www.fortunebusinessinsights.com/enquiry/queries/luxury-goods-market-103866. Therefore, key players have opportunities to expand their businesses in this region. For instance, in January 2020, OMEGA launched a new luxury eyewear collection featuring various sunglasses that are suitable for both men, as well as women. Besides, the Middle East and Africa is likely to show a growing trend with the increasing demand for luxury products from Gulf countries such as the U.A.E. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. "Brand Value of The Leading 10 Most Valuable Luxury Brands Worldwide in 2022 (in Million U.S. Dec 5, 2022 This statistic depicts the brand value of the leading 10 most valuable luxury brands worldwide in 2022. A blistering rally in luxury goods stocks this year powered by international demand particularly from China has taken a hit, wiping out more than $30 billion from the sector on Tuesday. Due to the COVID-19 pandemic and Russia-Ukraine War Influence, the global market for Consumer Luxury Goods estimated at USD million in the year 2022, is projected to reach a . Also, some of the others are introducing novel luxury brands to attract more customers. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Revenue of the luxury goods industry Worldwide 2015-2028, Luxury goods industry revenue worldwide 2020 & 2025, by country, Share of the personal luxury goods market worldwide in 2022, by consumer nationality, Global luxury goods market revenue 2022, by segment, Value of various global luxury markets 2022, by market type, Value of various global luxury markets in 2022, by market type (in billion euros), Revenue of the luxury goods industry Worldwide 2015-2028 (in billion U.S. dollars), Revenue of the luxury goods market worldwide in 2020 and 2025, by country (in million U.S. dollars), Expected CAGR of personal luxury goods market 2020-2025, Expected CAGR of global personal luxury goods market from 2020 to 2025, Share of the personal luxury goods market worldwide in 2022, by consumer nationality*, Fashion and luxury goods M&A deals worldwide in 2021, by product category, Number of merger and acquisition deals in the fashion and luxury goods sector worldwide in 2021, by sector, Value share of the global personal luxury goods market in 2022, by sales channel, Share of the global personal luxury goods market in 2022, by sales channel, Value of the global personal luxury goods market in 2022, by format, Value of the personal luxury goods market worldwide in 2022, by sales channel (in billion euros), Value of the online personal luxury goods market worldwide 2004-2021, Value of the online personal luxury goods market worldwide from 2004 to 2021 (in billion euros), Global used personal luxury goods market size from 2015 to 2021, Value of the personal luxury goods second-hand market worldwide from 2015 to 2021 (in billion euros), Value of the global outlet personal luxury goods market 2012-2021, Value of the outlet personal luxury goods market worldwide from 2012 to 2021 (in billion euros), Revenue of the luxury good market worldwide in 2022, by segment (in billion U.S. dollars), Revenue of the luxury fashion industry Worldwide 2015-2028, Revenue of the luxury fashion industry Worldwide 2015-2028 (in million U.S. dollars), Revenue of the prestige fragrances industry worldwide 2015-2028, Revenue of the prestige fragrances market worldwide from 2015 to 2028 (in billion U.S. dollars), Revenue of the luxury watches & jewelry industry Worldwide 2015-2028, Revenue of the luxury watches & jewelry industry Worldwide 2015-2028 (in million U.S. dollars), Revenue of the luxury leather goods industry Worldwide 2015-2028, Revenue of the luxury leather goods industry Worldwide 2015-2028 (in million U.S. dollars), Revenue of the luxury eyewear industry Worldwide 2015-2028, Revenue of the luxury eyewear industry Worldwide 2015-2028 (in million U.S. dollars), Sales of the leading luxury companies worldwide 2012-2021, Sales of the leading luxury companies worldwide from 2012 to 2021 (in billion euros), Total revenue of the LVMH Group worldwide 2008-2022, Total revenue of the LVMH Group worldwide from 2008 to 2022 (in million euros), LVMH Group's revenue share worldwide from in 2022, by geographic region, Revenue share of the LVMH Group worldwide in 2022, by geographic region, Business segment revenue share of the LVMH Group worldwide in 2022, Revenue share of the LVMH Group worldwide in 2022, by business segment, Kering's global revenue from 2008 to 2022, Revenue of the Kering Group worldwide from 2008 to 2022 (in million euros), Revenue share of the Kering Group worldwide 2022, by region, Revenue share of the Kering Group worldwide in 2022, by region, Global revenue share of the Kering Group in 2022, by brand, Revenue share of the Kering Group worldwide in 2022, by brand, Global revenue share of the Kering Group in 2021, by product category, Revenue share of the Kering Group worldwide in 2021, by product category, Total sales of the Richemont Group worldwide 2008-2022, Total sales of the Richemont Group worldwide from FY2008 to FY2022 (in million euros), Sales share of the Richemont Group worldwide 2022, by geographical region, Sales share of the Richemont Group worldwide in FY2022, by geographical region, Sales share of Richemont worldwide 2022, by product segment, Richemont Group's sales share worldwide in 2022, by product category, Brand value of the leading 10 most valuable luxury brands worldwide in 2022 (in million U.S. dollars), Leading 20 European luxury goods companies based on sales 2021, Leading 20 European luxury goods companies based on sales worldwide in 2021 (in million U.S. dollars), Leading luxury fashion brands in Italy in 2021, based on the National Brands IPX (Index), Most popular luxury brands in Great Britain 2022, Most popular luxury brands in Great Britain (UK) as of December 2022, Leading watch brands based on return on investment value 2021, Most profitable watch brands worldwide in 2021, based on average premium, Leading hand bag brands based on return on investment value 2021, Most profitable luxury handbag brands worldwide in 2021, based on average premium, Most popular luxury brands on social media worldwide, by social media audience 2022, Most popular luxury brands on social media worldwide as of May 2022, by social media audience size (in millions). The fine art market rebounded, thanks to the gradual reopening of public auctions and art fairs. Besides, lower electricity usage, less water, and safer raw materials are being stressed to ensure sustainability throughout the supply chain. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. These include the emergence of the luxury goods market in China and an expanding wealth class in the U.S. and Europe, which has increased the market for luxury goods. Shares in . Growing Adoption of Second-hand Branded Items to Hamper Demand. Theyre high-end products that consumers want but dont need. Geographically, Europe earned USD 103.86 billion in 2019 in terms of revenue. Innovatively created and fashion-forward goods that combine technology elements in jewelry items, handbags, or goggles are likely to augment product demand. After a sharp contraction in 2020, personal luxury goods sales are set to beat their pre-Covid record, with the market forecast to grow by 29% at current exchange rates to hit 283 billion, likely finishing the year up 1% from its 2019 record. Below are the two latest industry developments: https://www.fortunebusinessinsights.com/enquiry/customization/luxury-goods-market-103866. Department and specialty stores regained local footfall yet remained well behind 2019. The data offered to us was exactly what we were looking for. Southeast Asia, meanwhile, continued to suffer from the dearth of tourists. The best luxury stocks include strong brands, high operating margins, and timeless products. For instance, in February 2020, Burberry announced to acquire Printemps in Paris. As a Premium user you get access to background information and details about the release of this statistic. As tourism collapsed by 80% to 90%, spending on personal luxury goods by consumers in their home markets picked up the slack, rising by 50% to 60% between 2019 and 2021, according to our forecasts. They should all surpass their 2019 levels this year. The necklace also has other features, including long-distance remote sensing (Love rhythm), love code couple chat, steps tracking, call notification, custom alert, and private diary. The. Theyre also distinct from commodity products (such as bananas or gasoline) that are not easily distinguished by brand. Local consumption was held back by slow vaccine uptake. Based on the product type, the clothing segment generated 28.79% in terms of the luxury goods market share in 2019. However, emerging male grooming trends would support the growth of the men segment wherein branded shirts, goggles, and high-end watches would experience greater demand from them. Ongoing Covid-19 restrictions and economic uncertainty caused the first personal luxury market decline in five years. Comfortwear is now normalized, but formalwear has not recovered. Besides, the cancellation of tours and trips also had a negative impact on the purchase of such products during travel, such as those purchased in duty-free shops on airports or cruises. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive, Please pass on our sincere thanks to the whole team at Fortune Business Insights. That said, there is still a place for rising stars in the industry. According to our forecasts, the overall luxury market grew back by 13% to 15% in 2021, to 1.14 trillion, 9% to 11% below 2019 levels. The competitive landscape includes the top players' market rankings, as well as new service/product launches, collaborations, company expansions, and acquisitions made by the companies profiled in the last few years. https://www.fortunebusinessinsights.com/enquiry/request-sample-pdf/luxury-goods-market-103866. In addition, the market for luxury goods in North America is anticipated to expand during the forecast period due to an expanding young working-class . The rising number of millionaires and brand loyalty among customers are anticipated to fuel the growth. The global impact of COVID-19 has been unprecedented and staggering, with luxury goods witnessing a negative demand shock across all regions amid the pandemic. Clicking on the following button will update the content below. Statista assumes no It has proven to be resilient amid global economic crises and in a turbulent macroeconomic . Mercedes-Benz is a German automotive company ranked 12th on 'best-global-brands 2011 same rank it got the previous year 2010, with current brand value of 27, 445 million dollars. However, this is still 9% to 11% below 2019 levels. Sales of fine wines and spirits rebounded strongly, reaching 77 billion, up nearly 2% from 2019, boosted by people throwing themselves into post-lockdown socializing in a mood of revenge conviviality. Spirits grew the most, due to rising consumption of Asian spirits (mostly baijiu) and growing interest in high-status spirits. As soon as this statistic is updated, you will immediately be notified via e-mail. Logos were back in favor, primarily in connection with brand heritage. Coldwell Banker Global Luxury and Coldwell Banker Real Estate LLC's analysis indicates that the number of Americans with a net worth of at least USD 5 million increased by nearly 25% in 2021. Our next step included primary research to authenticate these sizing, assumptions, and findings with numerous industry experts. The one that tracks the S&P Global Luxury Index (INDEXSP:SPGLGUN) is the Amundi S&P Global Luxury ETF (GLUX.MI), which trades on a number of European exchanges. The North American market is characterized by the increasing presence of a large number of rich people, majorly in the U.S., that has supported the product demand. As per geography, Europe's market stood at USD 103.86 billion in 2019. The South American market is likely to grow at a steady rate as the urban population is increasing in countries such as Brazil and Chile. It increased by about 38% as compared to 2017. Slowly and relentlessly, Neves carried his digital vision for the luxury market forward, expanding from Farfetch's marketplace roots by offering its white-label technology platform to luxury. Our 11th annual report looks at the pandemics effects, the industrys impressive recovery, and the possibilities ahead. Based on product type, the clothing segment is expected to lead the market. data than referenced in the text. Chart. Heating Appliances Market Size to Hit USD 68.93 Billion by 2029 | With 4.3% CAGR During (2022-2029), Liquid Soap Market Size [2021-2027] | Industry Projected to Worth $28.79 Billion at 5.9% CAGR during Forecast Period, At CAGR of 3.7%, Jewelry Market to Worth USD 266.53 Billion by 2020-2027 | Jewelry Industry Growing Demand Globally. We all go shopping. Based on the end-user, the market is segmented into men and women. Which region held the highest share in the market? The loss of employment and reduction in salaries led to changes in the income level of the working groups in the year 2020. At what CAGR is the luxury goods market projected to grow in the forecast period (2020-2027)? We anticipate that the corresponding dip in the overall global spending by Chinese consumers will be reversed in the second half of 2022 or the first half of 2023 as tourist flows normalize. . The lockdown also led to the cancellation or postponement of several fashion-related events and celebrations, thereby impacting the demand for this type of goods. https://www.fortunebusinessinsights.com/luxury-goods-market-103866, Compagnie Financire Richemont SA (Geneva, Switzerland), Chow Tai Fook Jewellery Group Limited (Central, Hong Kong), The Este Lauder Companies Inc. (New York, U.S.), The Swatch Group Ltd. (Biel / Bienne, Switzerland), Ralph Lauren Corporation (New York, U.S.), Rest of the Middle East & Africa (By Product Type), Granular Research on Specified Regions or Segments, Companies Profiled based on User Requirement, Broader Insights Pertaining to a Specific Segment or Region, Breaking Down Competitive Landscape as per Your Requirement, Other Specific Requirement on Customization. Recession or a milder downturn? The US and Europe are still leading while new luxury markets are emerging. The overall luxury market tracked by Bain & Company comprises nine segments: luxury cars, personal luxury goods, luxury hospitality, fine wines and spirits, gourmet food and fine dining, high-end furniture and housewares, fine art, private jets and yachts, and luxury cruises. Thats visible in the different recovery trajectories of luxury goods vs. luxury experiences. For instance, as per a report of Savills Global Luxury Retail 2019 Outlook, the share of new jewelry stores opened increased from about 10% in 2017 to 13% in 2018 in total new luxury store openings worldwide. The Asia Pacific market is projected to grow rapidly due to the increasing disposable incomes of the region's middle-class population. The market reached 79 billion, up 20% to 22% at current exchange rates from 2020, but still down 58% to 62% from 2019. Printemps is a department store chain offering a wide range of luxury products along with apparel and beauty products. Retailers can accelerate without knowing for sure. Strong demand for luxury belts proved not everyone wore sweatpants in 2021 (at least not all the time). I appreciate the timeliness and responsiveness of you and your team., (applicable to 1 report only for the same license type), The global luxury goods market size was USD 316.16 billion in 2019. GRAFF's parent company, Meridian International Group, is an ISO 9000 certified company comprised of five business units. Working groups have faced reduction in their salaries and loss of employment. However, the sector goes beyond retail to include travel, food and dining, and even services. Show publisher information Still, 2022 is shaping up to be a slow-growth year for RH as consumer spending shifts from home furnishings, but the brand and the business model remain strong. Similarly, stay-at-home orders decreased the need to own such premium products. Spending on experiences should be the last luxury outlay to recover historical highs, given its reliance on the resumption of international tourism and business travel. Get the best reports to understand your industry. This Warren Buffett Stock Has a Challenging Road Ahead. As per the same source, the company recorded a decline in revenue from the perfumes & cosmetics segment by about 29% in the first half of 2020 compared to the same period in 2019, wherein revenue for the watches & jewelry segment decreased by 38%. The prompt 2021 rebound suggests that growth will be healthy for the personal luxury goods market in the medium term. Sales of luxury cars, the biggest portion of the overall market, beat their 2019 record, reaching 551 billion, 7% to 9% more than 2020 at current exchange rates, and 0% to 1% up from 2019. Our 2021 Luxury Goods Worldwide Market Study shows how brands can build on their historic rebound. The Americas account for 89 billion in annual sales (31% of the global market), while sales in mainland China amount to 60 billion (21% of the global market). and Saudi Arabia. Total Starbucks locations globally 2003-2022, U.S. beer market: leading domestic beer brands 2017, based on sales, Revenue and financial key figures of Coca-Cola 2010-2022, Research lead covering Non-food CG & Retail, Profit from additional features with an Employee Account. | Source: The COVID-19 pandemic has further provided opportunities to strengthen online channels in the luxury business. The rise in CAGR is attributable to this market's demand and growth, returning to pre-pandemic levels once the pandemic is over. "Assisting You in Establishing Data Driven Brands", Region : Global | Format: PDF | Report ID: FBI103866. Being non-necessities, luxury goods resemble high-priced discretionary goods, making them the opposite of consumer staples, or everyday products such as groceries that consumers buy because. The consumption of the product/service in each region is highlighted, as are the factors affecting the market within each region. Cumulative Growth of a $10,000 Investment in Stock Advisor, Copyright, Trademark and Patent Information, A retailer of upscale furniture and home goods, Worlds largest luxury company spanning multiple brands and product lines. Bains insights are based on triangulating information and sources available as of November 5, 2021, including the following: The scenarios do not consider disruptive changes in Covid-19 status quo (e.g., potential future waves of Covid-19 related to variations of the virus). Investors should expect luxury companies to generate high operating margins; 20% or more is ideal here. The slump in share prices on Tuesday of luxury groups including LVMH, Hermes International and Cie Financiere Richemont SA shows that investors don't share this view. Although luxury goods may sometimes be durable goods such as cars, they can also be consumables such as cosmetics or cigars. The apparel category grew in 2021, but not sufficiently to close the gap with 2019.
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