Luxury Apparel Market Size, Share & COVID-19 Impact Analysis, By Product Type (Topwear, Bottomwear, and Others), By End-user (Male and Female), By Distribution Channel (Online and Offline), and Regional Forecast, 2023-2030

The global luxury apparel market size was valued at USD 59.87 billion in 2022 and is projected to grow from USD 63.00 billion in 2023 to USD 93.10 billion by 2030, exhibiting a CAGR of 5.74% during the forecast period. Europe dominated the luxury apparel market with a market share of 34.24% in 2022.

Luxury fashion brands are known for their unique and innovative designs. Wearing luxury apparel allows individuals to express their style and stand out from the crowd. It often showcases the latest fashion trends and is associated with exclusivity. Moreover, high-end clothing brands pay close attention to the fit and comfort of their garments. Luxury apparel tends to offer a superior fit, ensuring maximum comfort to the consumers. Luxury brands offer more personalized shopping experiences. Customers seek unique, customized products, from monogrammed items to tailored clothing. This trend caters to individual tastes and preferences, propelling the market’s share.

Furthermore, the luxury clothing market has been adapting to the digital age. E-commerce, social media, and online marketplaces have become significant platforms for luxury fashion. With the escalation of online shopping, brands are investing in e-commerce capabilities and immersive online experiences to reach a wider audience. Luxury brands are being pressured to embrace diversity and inclusivity. Consumers are looking for brands that represent a wide variety of cultures and backgrounds in their product offerings, which also boosts the market’s growth.

COVID-19 IMPACT

Limitations on International Tourism and Travel Activities Restricted Market Growth during COVID-19

The COVID-19 pandemic had a major impact on the luxury apparel sector, leading to a range of challenges and changes in consumer behavior, production, and the overall industry landscape. During the initial outbreak and subsequent lockdowns, many luxury clothing retailers and brands experienced a sharp decline in sales as stores were closed and consumer spending decreased. Travel restrictions also affected the sales in the market, as tourists make many luxury purchases during their travel activities. Moreover, luxury brands that are heavily reliant on travel retail suffered losses as international tourism was halted. Airport and duty-free store sales, which were once major sources of revenue for luxury fashion, witnessed a steep decline during this time. Therefore, travel restrictions also affected sales, as tourists make many luxury purchases. Additionally, the pandemic disrupted the global supply chains, causing delays in manufacturing and distribution. Brands had to adapt to these disruptions and explore more local and agile production options.

With physical stores closed or operating at inadequate capacity, luxury brands accelerated their e-commerce strategies. Many consumers turned to online shopping for their luxury fashion needs, leading to a boost in online sales.

Luxury Apparel Market Trends

Inclination of Consumers Toward Sustainable Apparel Products to Boost Market Growth

The trend of sustainability in the luxury apparel industry has been growing steadily in recent years. Luxury brands are increasingly embracing sustainability to align with consumer demand for ethical and environmentally responsible fashion. The companies are using sustainable and eco-friendly materials in their products. This includes materials such as organic cotton, recycled polyester, Tencel, and cruelty-free alternatives to animal-derived materials. Besides, some luxury brands are adopting circular fashion practices, which involve designing products to be recycled, upcycled, or repurposed. They are also exploring take-back programs and resale partnerships to extend the lifespan of their products. For instance, in February 2023, Gucci, an Italy-based luxury fashion brand, prepared to establish a center in Tuscany dedicated to advancing sustainable and less wasteful fashion, aligning with the industry's collective endeavors to comply with upcoming European regulations that mandate companies to minimize their environmental impact.

Luxury Apparel Market Growth Factors

Growing Demand for High-quality and Premium Apparel Products to Intensify Market Growth

Luxury clothing is often associated with the highest quality and craftsmanship. Consumers seeking high-quality clothing products are more likely to turn to luxury brands as they perceive them as offering superior value and durability. Moreover, luxury garments are known for their durability and longevity. People looking for clothing items that last for an extended period are drawn to luxury brands, as these items are often made from the finest materials and are well-crafted. Moreover, luxury clothing tends to offer a superior fit and comfort due to the attention to detail in design and tailoring. Consumers who prioritize comfort and well-fitting clothing items are more inclined to choose luxury brands. For instance, in October 2023, Kylie Jenner, an American socialite and media personality, joined the fashion industry with the introduction of her latest clothing line.

Surging Disposable Income of the Consumers to Augment Product’s Demand

The surging disposable income of consumers can have a substantial influence on increasing the demand in the luxury apparel market. With higher disposable income, consumers have more money available for discretionary spending, including luxury attire. This increased affordability allows them to consider high-end clothing and accessories that may have been previously out of their budget. Consumers with high incomes are more likely to make aspirational purchases. They may want to own items from well-known luxury brands, even if it's just for special occasions or to signify their achievements. Consumers with higher incomes are often more trend-conscious and fashion-aware. They are more likely to follow and adapt to the latest fashion trends, which often include luxury brands. This drives demand for new luxury collections. For instance, according to the Federal Statistical Office, during the third quarter of 2023, disposable personal income in Germany increased to USD 715.80 billion, up from USD 714.08 billion in the second quarter of the same year.

RESTRAINING FACTORS

Presence of Several Low-Cost Clothing Brands to Limit Market Growth

The presence of numerous low-cost clothing brands and fast fashion retailers intensifies competition in the fashion industry. Luxury brands may find it challenging to compete on price and volume, as low-cost brands often prioritize affordability and accessibility. As consumers become accustomed to the convenience and affordability of fast fashion, their preferences may shift away from luxury brands that are perceived as less accessible and less aligned with everyday wear. The availability of low-cost alternatives can limit the potential market growth for luxury apparel. It may restrict the pool of potential customers who are willing to pay a premium for high-end fashion.

Luxury Apparel Market Segmentation Analysis

By Product Type Analysis

Wide Variety Available for Topwear to Upsurge the Demand of the Segment

On the basis of product type, the market has been separated into topwear, bottomwear, and others.

The topwear segment has been dominating the market as topwear includes items such as shirts, blouses, and jackets, which are highly visible and draw the most attention. Topwear is versatile and can be easily assimilated into a wide series of outfits and styles. It can be paired with different bottoms, accessories, and footwear, allowing for diverse looks and applications. Luxury brands can offer a variety of topwear options for different weather conditions, ensuring that consumers have access to high-end clothing year-round. The topwear segment held the largest luxury apparel market share in 2022.

Luxury brands are exploring innovative materials, such as technical fabrics and blends that enhance the performance and comfort of bottomwear. This appeals to consumers seeking cutting-edge fashion. Luxury bottomwear can be versatile and transition from casual to semi-formal settings. This adaptability makes it a desirable addition to a high-end wardrobe.

By End-user Analysis

Female Fashion Encompasses a Wide Range of Clothing Categories, Fostering the Product’s Demand

Based on the end-user, the global market has been divided into male and female.

The female segment will lead the luxury clothing market during the forecast period. The luxury fashion industry has traditionally placed a strong emphasis on female fashion. Many renowned luxury brands were founded with a focus on female clothing, which has contributed to the segment's dominance. Female fashion encompasses a wide range of clothing categories, including dresses, suits, skirts, blouses, and a variety of accessories. This diversity in offerings attracts a broader consumer base and contributes to higher demand.

The male fashion industry has expanded with a wider range of styles and categories, including formalwear, casual wear, activewear, and accessories. This diversity caters to different tastes and occasions. Men are increasingly interested in fashion, grooming, and luxury garments as they take on more active roles in their personal style and self-expression.

By Distribution Channel Analysis

Personalized Services Offered by the Physical Stores to Increase the Demand for Offline Channel

The market has been segmented into offline and online, based on the distribution channel.

The offline segment has been estimated to dominate the market during the forecast period. Luxury shopping is often observed as a sensory and experiential activity. Physical stores allow customers to touch, feel, and try-on garments, providing a tactile shopping experience that online channels cannot fully replicate. Luxury retailers excel at offering personalized services, such as attentive and knowledgeable staff, in-store stylists, and customization options. This personalized service enhances the overall shopping experience and builds a strong sense of customer loyalty.

E-commerce platforms have evolved to provide a seamless and user-friendly shopping experience. Luxury brands have invested in sophisticated online stores with advanced features, making it easy for consumers to browse and purchase high-end products. Online stores offer global access to luxury fashion, allowing brands to reach a wider and more diverse customer base. This expanded reach has opened up new markets and revenue streams.

REGIONAL INSIGHTS

The global luxury apparel market is partitioned into Asia Pacific, North America, Europe, South America, and the Middle East & Africa.

Europe led with a market share of 34.23% in 2022. Europe boasts a rich history of craftsmanship and luxury fashion, with many iconic luxury brands originating in France, Italy, and the U.K. These brands have cultivated a strong heritage and tradition of producing high-quality, luxury apparel.

European cities such as Paris, Milan, and London are renowned as global fashion capitals, home to major fashion events, designer boutiques, and prestigious fashion schools. These cities have a central role in shaping fashion trends and influencing the luxury market. For instance, in 2022, according to the Ministry of Foreign Affairs of Europe, the European Union's apparel import market reached a valuation of USD 204.31 billion, showing significant growth from USD 165.30 billion in 2017.

North America market demand is increasing due to a substantial population of affluent consumers who have the financial means to invest in luxury clothing. High disposable incomes enable these consumers to purchase high-end clothing and accessories. North America is a diverse region with a variety of cultures and subcultures. Luxury fashion appeals to a broad spectrum of consumers who appreciate unique styles and self-expression, leading to increased demand. For instance, according to the World Bank, the GDP per capita of the U.S. was recorded at USD 64,702.98 in 2022, from USD 60,158.91 in 2020.

Asia Pacific has experienced significant economic growth in recent decades. As a result, a growing number of affluent consumers have emerged with the financial capacity to invest in luxury clothing. The region's expanding middle class is increasingly interested in luxury fashion, viewing it as a symbol of social status and success. This demographic shift has significantly increased the demand for high-end clothing. Consumers in Asia Pacific tend to be brand-conscious and value the prestige and recognition associated with luxury fashion.

The Middle East attracts a significant number of tourists from around the world, many of whom engage in luxury shopping during their visits. Additionally, Africa's tourism industry contributes to the demand for luxury fashion, especially in high-end safari destinations. The presence of expatriate communities in the Middle East has introduced a diverse range of consumer preferences and global fashion influences, contributing to the demand for luxury clothing.

Increased globalization has exposed South American consumers to international luxury brands and trends. Frequent travel by South Americans to fashion capitals and luxury shopping destinations has also contributed to a heightened interest in luxury fashion.

List of Key Luxury Apparel Market Companies

Rapid Spread of E-commerce Platforms to Enhance Market Growth

E-commerce platforms enable luxury apparel brands to reach a global audience. They can expand their customer base beyond their physical store locations, tapping into markets that were previously inaccessible. Many luxury brands have integrated their online and offline channels to provide a seamless, omnichannel shopping experience, allowing customers to explore and purchase luxury fashion both in-store and online. For instance, in September, 2023, Ralph Lauren Corporation, a U.S.-based luxury garments company, revealed its expansion plans in Canada, marked by the introduction of a dedicated digital commerce platform and the inauguration of the first Ralph Lauren store in the country.

LIST OF KEY COMPANIES PROFILED:

• Gucci (Italy)


• Prada S.p.A. (Italy)


• Dior SE (France)


• Ralph Lauren Corporation (U.S.)


• Armani S.p.A. (Italy)


• Chanel (U.K.)


• Burberry (U.K.)


• LVMH (France)


• Dolce & Gabbana (Italy)


• Valentino S.p.A. (Italy)

KEY INDUSTRY DEVELOPMENTS:

• July 2023: Ralph Lauren, a U.S.-based luxury apparel company, revealed a fresh clothing line created in partnership with G2 Esports.


• December 2022: Dior, an international brand of luxury goods, unveiled the "Dior Tears" campaign in partnership with Denim Tears for the Fall 2023 collection. This initiative comes on the heels of a series of noteworthy collaborations led by Jones, including a menswear Spring '23 capsule with Eli Russell Linnetz earlier in the year and previous ventures with Shawn Stussy, sacai, KAWS, and Daniel Arsham.


• November 2022: Prada, a worldwide luxury apparel brand, revealed a collection inspired by the abaya, with proceeds dedicated to supporting Qatar's creative industry.


• December 2021: Burberry, a global luxury fashion brand, expanded its commitment to circular fashion by announcing intentions to introduce rental and resale services through a new collaboration with My Wardrobe HQ.


• June 2020: Gucci, an Italy-based luxury fashion brand, launched the ‘Gucci Off The Grid collection,’ a fully sustainable line crafted exclusively from recycled, organic, and responsibly sourced materials.

REPORT COVERAGE

The research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, product types, sales channels, and application usage areas. Besides this, the report provides insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth over recent years.

Report Scope & Segmentation