In-depth Report: Luxury Goods 2021

Statista Consumer Market Outlook


The global luxury goods market is expected to increase from US$309.6 billion in 2021 to US$382.6 billion in 2025 at a CAGR of 5.4%. Even though cutbacks on discretionary spending and an uncertain economic climate triggered by the COVID-19 pandemic resulted in a sharp fall in demand in 2020, the resurgence in Chinese spending and the increasing dominance of millennials and Generation Z is expected to drive the market in the medium term. Asia is expected to witness the highest spending, riding the crest of Mainland China’s resurgence, and is followed by Europe, North America, South America, Africa, and Australia and Oceania.

Even though online sales of luxury goods are expected to cannibalize the brick-and-mortar share over the next few years, the importance of the physical store continues to increase. Companies are following different strategies to augment their retail experience in the days of eCommerce. Interestingly, digital-born luxury companies are now opening physical stores to increase traffic to their eCommerce stores, enhance brand legitimacy, provide the touch-and-feel lacking in an online store, and improve local community engagement. An overall Luxury 4.0 model is emerging, which is characterized not only by the growth of the online sales channel but also by the digitalization of a consumer’s entire luxury shopping journey.

The luxury industry has been associated with excessive consumerism and a general lack of respect for the environment. However, with the growing influence of millennials and Generation Z, who deeply consider the social impact of their luxury purchase, the industry is gradually moving towards ethical and sustainable products and experiences. The increasing popularity of casual apparel, the growing demand for experiential luxury, rentals, and the rising share of online sales and accessories are other important market trends.

Spending by millennials from Mainland China, both at home and overseas, is one of the main drivers of the global luxury market. Mainland China currently has around 400 million millennials, five times more than the U.S. International tourism is another driver with a 2017 Deloitte study showing global tourists to account for almost 47% of luxury goods purchases. The recent rise of luxury menswear has resulted in brands such as Prada, Gucci, and Dolce & Gabbana, which traditionally have not been known for their menswear lines, to open stores focused only on men.

Brands are now adopting digital technologies to not only mimic the in-store shopping experience on their eCommerce platforms but to also enhance the physical store experience. Artificial intelligence (AI) is currently the most sought-after technology as it enhances customer experience and helps brands reach a wider audience. Immersive technologies such as virtual and augmented reality (VR/AR) are also experiencing increasing use due to their ability to enhance the overall shopping experience and create high-quality content for digital marketing. 3D printing is used mainly in luxury fashion as it enables the creation of shapes without molds, thus resulting in elements with extreme intricacy.

The U.S., Mainland China, and Japan are projected to have the three biggest markets for luxury goods in 2021 with a market size of US$71.3bn, US$43.9bn and US$30.7bn respectively. It is estimated that these markets will account for 47% of the global luxury goods sales in 2021. Even though the U.S. retains the leading position for luxury goods globally, factors such as economic and political uncertainty, cutbacks on discretionary spending, and low sales to international tourists have been affecting market growth.

In the U.S., Germany, and the UK, a survey conducted in 2021 revealed that the number of male luxury shoppers is larger than that of female luxury shoppers. Whilst the majority of luxury shoppers in the UK and Germany are aged between 29 and 34, in the U.S. they are between the ages of 35 and 44. Fashion & accessories is the most popular category when it comes to gifting or buying in all three countries. Shoes top the list of fashion and accessories owned. Jackets and coats, sunglasses, and outwear are other popular items. Chanel is the most well-known luxury fashion & accessories brand in all three countries, and in the category of luxury watches, Rolex is the most well-known brand in all three countries. The most well-known luxury jewelry brands in the U.S., UK, and Germany are Tiffany & Co., Cartier, and Chanel, respectively.

France leads in the number of leading luxury goods companies globally. Specifically, most of the prominent French luxury goods companies are located in Paris. We have a closer look at some of those prominent French companies, LVMH, L'Oréal, Kering, and Hermès, along with other global leaders, including Burberry, Swatch, Estée Lauder, and Coty. Most of these luxury goods companies have followed an inorganic growth path by acquiring competitor companies to increase their business presence. A few of them have opted for licensing and distribution arrangements to support their bottom line.

  • Language: English
  • Released: August 2021
More than 7,500

Recommended studies and dossiers

Recent studies and dossiers

You may also be interested in...

Any more questions?

Get in touch with us quickly and easily.
We are happy to help!