The global luxury goods market’s growth is back to normal, a new report shows. The post-pandemic rebound seems to be over, but numbers remain high with €1.5 trillion for the industry’s market projected in 2023.
The luxury goods sector is expected to see its global market revenues grow by 8 to 10%, according to a report published on Tuesday by US management consulting firm Bain & Company.The market is expected to continue on this trajectory with an average growth of 5 to 7% per year until 2030.The ‘personal luxury goods’ market, which includes fashion, leather products, jewellery, watches and beauty products, should reach a total of €362 billion in sales for 2023.”We’re on a decelerated growth rate of 4%,” Joëlle de Montgolfier, head of Bain & Company’s luxury division, told AFP.Stabilisation of the post-pandemic reboundYet the market is still “head and shoulders above 2019”, she added, explaining that the sector remains dynamic despite the growth rates of previous years, which stood above 20%.Figures show a return to pre-pandemic trends, with luxury customers who are increasingly looking for an experience or special moment, rather than simply owning a product, according to de Montgolfier. Luxury hotels have experienced a 14% increase, 10% for high-end restaurants, and a staggering 113% growth for luxury cruises.While all regions reported a growth in 2023, the US’ luxury growth market shows an 8% decrease. Macroeconomic uncertainty negatively impacted Europe’s main competitor on this market.De Montgolfier noted a ‘mixed performance’ for the Chinese market, in spite of a 9% growth. “We expected a more sustained growth,” she told AFP. In the region, Chinese tourists mostly weighed on the luxury goods market growth in Hong Kong, Japan and Macau.Uncertainty for 2024Although Bain & Company predicts the market to grow by 5 to 7% per year until 2030, uncertainty remains.The more pessimistic predictions forecast a 1 to 4% sales increase in 2024, as the personal luxury goods market could be suffering from the global geopolitical situation – including the macroeconomic situations in China and the US.
Source: euronews.com