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The Luxury Goods Market (BPO) will reach USD 642.65 Mn by 2032. The Luxury Goods Market is driven by the growth of ‘Entry-to-Luxury’ consumers and changing consumer preferences towards experiences and sustainability.
Luxury Goods Market to Hit USD 642.65 Mn by 2032
The Luxury Goods Market was USD 465.98 Mn in 2025 and is expected to expand at a CAGR of 4.1 % from 2025 to 2032, reaching USD 642.65 Mn by 2032. In April 2023, LVMH, the parent company of Dior and Louis Vuitton, became the first European corporation to have a market worth of more than $500 billion. Hermès has strengthened its position as a leader in the luxury industry by surpassing a €300 billion market capitalization. Brunello Cucinelli, an Italian luxury fashion group, said that its 2024 revenues had increased by 12% to €1.28 billion ($1.31 billion). Chanel launched a new handbag campaign featuring Jennie Kim, reflecting the brand strategy to engage consumers through high-profile collaborations.
Increased disposable incomes have resulted in a growing middle class with an increasing need for luxury items, especially in developing nations like China and India. Online sales and marketing have been made possible by the integration of digital platforms, which has revolutionized luxury brand interaction. Luxury businesses are reevaluating their digital strategy as a result of recent changes in social media algorithms that have affected brand visibility. Luxury goods expenditure by tourists has risen above pre-pandemic levels, especially in places like Europe, where a recovery in tourism has counterbalanced certain domestic consumer spending deficits. ” Consumer involvement and brand perception are greatly impacted by social media platforms and celebrity endorsements. In the United States luxury goods market, the apparel, footwear, and accessories segment is the most significant, accounting for 36.8% of the market’s total value in 2023.
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Luxury Goods Market Segmentation
By Distribution Channel: The Offline segment dominates the market. One of the most important aspects of luxury consumption is the in-store shopping experience in department stores. Major luxury department stores that sell a wide range of luxury goods include Saks Fifth Avenue, Harrods, and Neiman Marcus.” Online retailers have grown to be major players in the luxury goods business, including websites like Farfetch, Net-a-Porter, and MatchesFashion.” Online luxury sales are estimated to have increased by 20% a year in recent years.
By End Users: Women have always been the main consumers of luxury goods. This segment held a 50.1% market share and generated over $123.9 billion in sales, and accounted for 60.2% of global luxury market revenue. Men’s participation in luxury consumption has been increasing, with a particular focus on luxury apparel, watches, and cars.” This segment accounted for around $92.8 billion in sales, or 37.5% of the market. The growing number of high-net-worth individuals is predicted to drive the men’s segment’s growth at a compound annual growth rate (CAGR) of 7.2% between 2024 and 2030.
Luxury Goods Market Regional Analysis
United States: In 2025, the luxury goods market in the United States is projected to generate around $101.02 billion in revenue. It is estimated that 20.6 % of the total revenue will be generated through online sales in the US in 2025. LVMH, a global leader in luxury goods, runs an extensive retail network with more than 6,300 outlets of sale in the United States. Potential U.S. taxes on imports from Europe present difficulties for LVMH’s wine and spirits business in the United States.
Germany: The German luxury market is projected to generate approximately $17.41 billion in 2024, with a CAGR of 1.90% from 2025 to 2030. German customers’ buying power in the luxury market is reflected in the predicted $209.20 per capita revenue. Approximately 42% of Germans express interest in buying luxury goods within the next 12 months. In Germany, around 72% of Gen Z and younger Millennials buy premium goods or experiences. Kering SA, LVMH Moët Hennessy-Louis Vuitton SE, HUGO BOSS AG, Givenchy, and Marc O’ Polo Group are major players in the German luxury goods market.
China: The luxury goods market in China is expected to generate over $110.15 billion in revenue by 2025, growing at a CAGR from 2025-2029 of 6.78%. The market shrank by 18% to 20% in 2024, reaching 2020 levels. Luxury businesses, including Burberry, Kering, and Hugo Boss have had stock downgrades as a result of China’s weak consumer spending. According to Barclays analysts, China’s luxury market is expected to increase at a rate of about 4% in 2025. LVMH Moët Hennessy Louis Vuitton (LVMH), Kering, Richemont, Chanel, Hermès, and Rolex are the key players that dominate the Chinese luxury goods market.
Luxury Goods Market Competitive Landscape
LVMH Moët Hennessy Louis Vuitton (LVMH): In January 2021, the acquisition of the renowned American jewellery company Tiffany & Co. was finalized by LVMH for approximately $15.8 billion. Christian Dior Couture was acquired by LVMH for €6.5 billion.
Kering: Swiss luxury watchmaker Ulysse Nardin was acquired by Kering. The multinational sportswear brand Puma was acquired by Kering (formerly PPR) for around €5.3 billion. Kering acquired the majority of the British luxury fashion business Christopher Kane.
Swatch Group: One of the most prominent brands in watchmaking, Breguet, was acquired by the Swatch Group. Swatch Group acquired Longines. Blancpain, a prestigious Swiss watch brand, was acquired by Swatch Group. The Swatch Group acquired the haute horlogerie watch company Jaquet Droz.
To know the most attractive segments, click here for a free sample of the report: https://www.stellarmr.com/report/req_sample/Luxury-Goods-Market/1369
Recent Developments:
- Gucci introduced the Off the Grid line, which makes use of eco-friendly materials, including organic cotton and recycled nylon.
- Chanel recently introduced a range of eco-friendly luxury bags composed of recycled and bio-sourced materials.
- Tag Heuer introduced the Connected smartwatch, a high-end hybrid that blends contemporary wearable features with traditional Swiss watchmaking.
Conclusion
- Sustainability has emerged as a key theme in the luxury market, as companies work to satisfy rising customer demands for carbon neutrality, ethical manufacturing, and environmentally friendly materials.
- Leading companies like Gucci, Chanel, and LVMH are tackling environmental issues across their supply chains, implementing recycled and biodegradable materials, and committing to sustainable practices.
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