In a positive outlook for the luxury goods market, Bain & Company estimates a 4% growth in the personal luxury goods sector, reaching EUR 362 billion ($396.47 billion) this year, driven by a resurgence in travel. The consultancy firm notes that global luxury tourist purchases are approaching pre-pandemic levels, with untapped potential in various regions.
The global luxury market as a whole is anticipated to witness a robust 8% to 10% growth, reaching a record-breaking EUR 1.5 trillion ($1.64 trillion) for the year, according to projections by Bain. The jewelry market is poised to contribute significantly, reaching a value of EUR 30 billion ($32.86 billion) in 2023, with fine jewelry emerging as a resilient investment amid prevailing uncertainties.
Bain’s report, presented in collaboration with the Italian luxury goods industry group Altagamma, emphasizes the resilience of the fine jewelry segment and its attractiveness to investors. However, potential challenges in the fourth quarter, such as weak consumer confidence, macroeconomic tensions in China, and a slow US rebound, could temper the overall growth in the luxury sector.
While forecasting a softening in the performance of personal luxury goods in 2024, leading to low- to mid-single-digit growth compared to 2023, Bain points to a promising future for Mainland China. By 2030, China is expected to exert a significant influence, contributing to 35% to 40% of the personal luxury goods market, surpassing the combined representation of Europeans and Americans at 40%.
Moreover, Bain predicts a shift in distribution channels, with online and mono-brand channels projected to dominate two-thirds of the entire luxury market over the next seven years. As the industry evolves, this shift signifies the growing importance of digital platforms in luxury retail, shaping the landscape for both brands and consumers.
