Luxury Goods Market to Exhibit a CAGR of 4.7% between 2023-2030; Increasing Demand for Sustainable Luxury Products to Spur Market Growth

The global luxury goods market size was valued at USD 272.74 billion in 2022. The market is anticipated to grow from USD 284.00 billion in 2023 to USD 392.40 billion by 2030, exhibiting a CAGR of 4.7% during the forecast period of 2023-2030. Fortune Business Insights™ presents this information in its report titled “Luxury Goods Market Size, Share & COVID-19 Impact Analysis, By Product Type (Watches & Jewelry, Perfumes & Cosmetics, Clothing, Bags/Purses, and Others), By End-user (Women and Men), By Distribution Channel (Offline and Online), and Regional Forecast, 2023-2030”.

Luxury items’ high cost and durability come with a hefty price that is affordable to a small population. For such individuals, companies target and attract by offering bespoke designs. For instance, Bernhard H. Mayer unveiled its new luxury timepiece collection known as Mecanique Collection. This collection was launched in Hong Kong in April 2023 that focuses on a distinctive mecanique design. Major companies also focus on creating jewelry equipped with NFC chips. For instance, Coachtopia was introduced by Coach, a collection of luxury products such as wallets, bags, and other luxury apparel equipped with NFC chips.

Low Demand for Non-essential Items Hampered Market During Pandemic

As luxury goods are non-essential items, the market experienced low demand during the pandemic. For instance, according to the financial result of LVMH in the first half of 2020, the perfume and cosmetics section of the company witnessed a fall of 29% compared to the 38% decline in the watches and jewelry section in 2019. However, the market is expected to gain momentum post lockdown releases from online sales channels.

Companies Focus on Launching New Collection to Attract High-Net Worth Individuals

ICONS, the latest capsule collection by Hey Harper, was launched in the U.K. GARDEN OF LIGHT Brooch, CRYSTAL BLOOM Ring, GILDED THORNS Ear Cuff, PETALS SPIRAL Bracelet, and others are included in the luxury jewelry collection.

Preference for Environmental Products to Provide New Openings

Natural materials are used to manufacture handbags, jackets, footwear, and other luxury items compared to leather products made from animal skin. For instance, Vikki Jones introduced its tote bags manufactured using 100% vegan leather. In this production process, no animals are harmed as the material is eco-friendly. Moreover, other advantages using natural materials are less consumption of water and electricity. Hence, initiatives taken by companies producing luxury goods will likely increase the luxury goods market share.

However, the increasing trend for using counterfeit products may impede the luxury goods market growth.

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https://www.fortunebusinessinsights.com/luxury-goods-market-103866

Competitive Landscape

Businesses Focus on Innovative Luxury Products to Increase Market Reach

Due to global reach and strong product portfolios, key players hold a considerable share of the market. To sustain their position in the market, businesses focus on product development and innovation, acquisitions, and partnerships. For instance, L'Oréal agreed with Prada S.p.A. on 11^th December 2020 to produce, innovate, and distribute its product.

Notable Industry Development: 

• January 2021: LVHM, a global fashioned products maker, acquired Tiffany & Co., a global luxury jewelry products company, to accelerate its innovation, growth, and customer acquisition capabilities in the global market.

List of Key Players Profiled in the Report:

• LVHM (France)


• Compagnie Financière Richemont SA (Switzerland)


• Kering SA (France)


• Chow Tai Fook Jewellery Group Limited (Hong Kong)


• The Estée Lauder Companies Inc. (U.S.)


• Luxottica Group SpA (Italy)


• The Swatch Group Ltd. (Switzerland)


• L’Oréal Group (France)


• Ralph Lauren Corporation (U.S.)


• Shiseido Company, Limited (Japan)

Further Report Findings:

• Asia Pacific dominates the market and was valued at USD 109.42 billion in 2022. The region’s growth is attributed to high disposable income among the middle-class population and accessibility to luxury products.


• The market in Europe holds a considerable share due to the presence of large players such as Burberry, LVMH, L’Oréal, and others.


• North America, South America, and the Middle East & Africa are anticipated to show significant growth due to the high demand for luxury items.

Table of Segmentation