- The 2023 spring luxury study from Bain & Company and Altagamma forecasts that the personal luxury goods sector will expand between 5% and 12%.
- By 2030, the market is predicted to be worth between $625bn and $671bn, an increase of over 100% from what it was in 2020.
- Watches and jewellery are the best-performing categories as these items are typically high-quality, one-off purchases.
According to Bain & Company and Altagamma’s 2023 spring luxury study, the global luxury goods market is forecast to grow between 5% and 12% in 2023, following a record-breaking year in 2022.
Despite economic uncertainty, the industry is projected to reach a total value of approximately $625bn to $671bn by 2030, thus doubling its size from 2020.
The US luxury shopping market has seen a slowdown due to economic instability, while Europe is experiencing an increase in high-end spending due to an influx of wealthy international tourists.
Watches and jewellery are the strongest-performing categories, demonstrating how consumers favour quality over quantity. This trend is expected to continue for several months in 2023.
Claudia D’Arpizio, a partner at Bain & Company and leader of the firm’s Global Luxury Goods and Fashion practice, emphasised the importance of concentrating consumer efforts on high net-worth individuals (HNWIs).
She also suggested that companies that appeal to HNWIs should expand their geographic reach overseas, provide value-rich services, and concentrate on classic items to succeed in the growing luxury market.
The study found that in 2022, the personal luxury goods market achieved a record $377bn in value and prospered in Q1 2023, registering a 9% to 11% increase over the previous year.
It attributed success to specific indicators, including a drop in hyperinflation, recuperating European consumer confidence, the reopening of the Chinese sector and continuing momentum in international purchases directed towards Japan and Southeast Asia.
The analysis reveals that customers are continuing to search for luxurious and memorable items overseas, which has caused an upswing in the purchases and importation of watches, jewellery and luxury designer bags.
Experiential and travel retail outlets have seen a healthy increase. It is forecasted that by 2023, the luxury market may have a value of $393bn to $415bn.
International HNWIs looking to invest in the luxury market should secure an efficient money transfer method to make international payments between countries.
Forecast growth outcomes have been predicted in two parts: optimistic and realistic. Optimistic predictions fall between a 9% and 12% sales rise, while realistic predictions sit at a 5% to 8% rise.
HNWIs considering purchasing an item in the global luxury market from overseas should use a safe money transfer method when making payments.
HNWIs looking to invest in the global luxury market can use our money transfer comparison tool to find the best exchange rates.
