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Study Period | 2019 - 2030 |
Market Size (2025) | USD 1.04 Trillion |
Market Size (2030) | USD 1.37 Trillion |
CAGR (2025 - 2030) | 5.50 % |
Fastest Growing Market | North America |
Largest Market | Asia Pacific |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Luxury Goods Market Analysis
The Luxury Goods Market size is estimated at USD 1.04 trillion in 2025, and is expected to reach USD 1.37 trillion by 2030, at a CAGR of 5.5% during the forecast period (2025-2030).
Luxury goods serve as symbols of success, status, and prestige, attracting consumers eager to showcase their socio-economic standing. Emerging markets, notably China, India, and Southeast Asia have experienced rapid economic growth, leading to a burgeoning affluent middle class and an increasing number of high-net-worth individuals (HNWIs). This economic shift has significantly boosted spending on luxury goods. Besides, the advent of e-commerce and digital channels has broadened access to luxury goods, allowing consumers to explore, purchase, and engage with brands online. Social media platforms, including Instagram, TikTok, and YouTube, have emerged as powerful tools for luxury brands, enabling them to connect with younger audiences and highlight the aspirational nature of their products through influencers and brand ambassadors.
Moreover, the luxury market is transforming, with experiential luxury taking center stage. This shift is predominantly driven by millennials and Gen Z, who value experiences over mere possessions. Being digital natives, they not only engage actively with brands online but also seek personalized experiences, fueling market growth. Data from the US Census Bureau highlights that in 2023, Millennials constituted approximately 21.71% of the U.S. population, while Gen Z made up around 20.69%, underlining the demand for luxury goods among this demographic.
Furthermore, handbags are projected to be the leading segment in the luxury goods market. Responding to this demand, key market players are launching innovative premium luxury products. For instance, in February 2024, American ready-to-wear brand Veronica Beard launched its first collection of luxury handbags, globally. The new collection includes a goody bag, tote bags, bucket bags, and camera bags in leather and made available at VeronicaBeard.com and Veronica Beard boutiques located in New York, Miami, Beverly Hills, and London, as well as select retailers. Given these dynamics, the luxury goods market is poised for positive growth in the coming years.
Luxury Goods Market Trends
Increasing Demand for Luxury Watches and Jewelry Driving the Market
Affluent consumers increasingly view luxury watches and jewelry as symbols of success, status, and cultural identity. This perception fuels a rising demand for these luxury items. As the global population of affluent individuals expands, so does their capacity for discretionary spending on premium products, driven by their elevated socioeconomic status and accumulated wealth. In addition, the increasing demand for personalization is driving the growth of luxury goods. Customers increasingly seek personalized and unique luxury items like customized watches and jewelry.
Furthermore, in response to increasing demand, brands from Europe, GCC, and other regions are introducing watch boutiques. These boutiques not only feature exclusive designs but also emphasize personalized customer experiences. Luxury brands focus on unique designs and maintenance services, enhancing customer satisfaction and brand loyalty. For example, in May 2023, Jacob & Co. launched its latest store and watch boutique in Saudi Arabia, showcasing a collection of distinctive and luxurious timepieces, often adorned with rare gemstones.
Moreover, affluent women are emerging as pivotal buyers in the luxury jewelry market. Notably, working women are increasingly spending on luxury watches and jewelry, driven by rising disposable incomes and a desire for status symbols. According to the Bureau of Labor Statistics, in 2023, about 75.54 million women were employed in the United States, up from 74.09 million in 2022. In light of this demand, major industry players are promptly introducing new luxury watches and jewelry collections. For instance, in 2023, Rolex SA launched a new line of luxury watches – the Oyster Perpetual Collection, the 1908 is the first representative of the Perpetual collection. As per the brand's claim, the new 1908 features a slim 39 mm case in 18 ct yellow or white gold, with gracious lines and a transparent back. Made of virtually scratchproof sapphire, the domed crystal, and the transparent case back benefit from an anti-reflective coating.
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Asia-Pacific Holds Significant Market Share
As economies in the Asia-Pacific region, especially in China, India, and Southeast Asia, continue to expand, so does the middle and upper class. With rising disposable incomes, there's a burgeoning appetite for luxury goods, enabling a broader range of consumers to indulge in high-end products. Data from the National Bureau of Statistics of China reveals that in 2023, the average annual per capita disposable income for Chinese households reached about CNY 39,200, a notable rise from CNY 36,883 in 2022, underscoring the growing demand.
Additionally, many Asia-Pacific countries, such as Thailand, Japan, and South Korea, benefit from luxury shopping by tourists, particularly from China. Duty-free outlets in airports and luxury shopping hubs have become key sales channels. Chinese tourists strongly demand luxury goods, particularly designer clothing, handbags, watches, and cosmetics. These countries provide a broad selection of international luxury brands, often at more competitive prices than in China, making them attractive shopping destinations. Besides, concerns over authenticity and access to the latest collections drive many Chinese consumers to buy luxury goods overseas. The belief that foreign markets provide genuine, high-quality products boosts the allure of shopping in these destinations.
Moreover, the region's increasing demand for premium and luxury leather goods significantly contributes to the market expansion. In response to the demand, many domestic and international players in the market are launching innovative luxury leather goods. For instance, in June 2023, GARRTEN, a luxury leather goods manufacturer, launched a new line of leather accessories for men and women. The collection comprises four types of leather backpacks: signature, slim, rolltop, and travel. The line also includes two categories of leather accessories: dopp kits and wallets. These products are manufactured using full grain and saffiano leather and are available in multiple color options. Given these dynamics, the luxury goods market in the Asia-Pacific region is poised for continued growth in the foreseeable future.
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Luxury Goods Industry Overview
The global luxury goods market is highly fragmented with many international and domestic players competing for the market share. The market concentration is attributed to the presence of multinational conglomerates that own a portfolio of prestigious luxury brands. Some of the key players in the market include LVMH Moet Hennessy Louis Vuitton, Compagnie Financiere Richemont SA, Hermès International S.A., Rolex SA, and Kering S.A. Also, key players are embarking on mergers and acquisitions, and entering into partnerships /agreements as one of their key strategies to achieve consolidation and optimize their offerings. Furthermore, these companies are ramping up investments in R&D and marketing, broadening their distribution networks, and diversifying product lines.
Luxury Goods Market Leaders
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LVMH Moet Henessy Louis Vuitton
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Hermès International S.A.
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Rolex SA
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Kering S.A
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Compagnie Financiere Richemont SA
- *Disclaimer: Major Players sorted in no particular order
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Luxury Goods Market News
- July 2024: Kering SA, through its brand, Gucci, launched a new interlocking watch collection run by automatic and quartz movements. As per the brand's claim, the latest collection has three chronograph models in black (Ref. 796785 I18B0 9065), blue (Ref. 796849 I18B0 8605), and green (Ref. 796851 I18B0 8512).
- April 2024: Hermès International SA expanded its portfolio with the launch of 'The Cut,’ a sports watch for women. The company claims the new watch comes in steel or two-tone steel and rose, with or without diamonds, and a bracelet or rubber strap.
- March 2024: Rolex SA launched a new watch called Day-Date 40 in Everose Gold for the 2024 Academy Awards. It is a soft-launched special edition for the 2024 Academy Awards with what the brand describes as an ombré slate dial in 18-k Everose.
- February 2024: LVMH's brand, Louis Vuitton has launched a special capsule collection named "LV Mirage", specifically designed for the Middle East region. The new LV Mirage capsule collection centers on time-honored occasions and togetherness and includes luxury ready-to-wear, leather goods, accessories, shoes, and more.
Luxury Goods Industry Segmentation
Luxury goods, by definition, are premium products that command higher prices than their counterparts in the market. Customers are willing to pay these elevated prices due to the products' distinct selling points and strong brand associations. Also, luxury goods are high-quality, exclusive, and often expensive products or services associated with prestige, social status, and superior craftsmanship.
The Global Luxury Goods Market is segmented by type, distribution channel, and geography. By type, the market is segmented into clothing and apparel, footwear, bags, jewelry, watches, and other types. By distribution channels, the market is segmented into single-branded stores, multi-brand stores, online stores, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The market sizing has been done in value terms in USD for all the abovementioned segments.
By Type | Clothing and Apparel | ||
Footwear | |||
Bags | |||
Jewelry | |||
Watches | |||
Other Types | |||
By Distribution Channel | Single-Branded Stores | ||
Multi-branded Stores | |||
Online Retail Stores | |||
Other Distribution Channels | |||
Geography | North America | United States | |
Canada | |||
Mexico | |||
Rest of North America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Spain | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
Australia | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle-East and Africa | United Arab Emirates | ||
South Africa | |||
Rest of Middle East & Africa |
Luxury Goods Market Research FAQs
How big is the Luxury Goods Market?
The Luxury Goods Market size is expected to reach USD 1.04 trillion in 2025 and grow at a CAGR of 5.5% to reach USD 1.37 trillion by 2030.
What is the current Luxury Goods Market size?
In 2025, the Luxury Goods Market size is expected to reach USD 1.04 trillion.
Who are the key players in Luxury Goods Market?
LVMH Moet Henessy Louis Vuitton, Hermès International S.A., Rolex SA, Kering S.A and Compagnie Financiere Richemont SA are the major companies operating in the Luxury Goods Market.
Which is the fastest growing region in Luxury Goods Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Luxury Goods Market?
In 2025, the Asia Pacific accounts for the largest market share in Luxury Goods Market.
What years does this Luxury Goods Market cover, and what was the market size in 2024?
In 2024, the Luxury Goods Market size was estimated at USD 0.98 trillion. The report covers the Luxury Goods Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Luxury Goods Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Luxury Goods Industry Report
Statistics for the 2025 Luxury Goods market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Luxury Goods analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.