The global luxury goods market is set to gain traction from the introduction of fashion-forward and innovatively created products. This information is given by Fortune Business Insights™
According to Fortune Business Insights™ the global luxury goods market is set to gain traction from the introduction of fashion-forward and innovatively created products. This information is given by in a new report, titled, “Luxury Goods Market Size, Share & Industry Analysis, By Product Type (Watches & Jewelry, Perfumes & Cosmetics, Clothing, Bags/Purses, and Others), End-user (Women and Men), Distribution Channel (Offline and Online), and Regional Forecast, 2020-2027.”
The report further states that the luxury goods market size was USD 316.16 billion in 2019. It is projected to grow from USD 257.26 billion in 2020 to USD 352.84 billion in 2027 at a CAGR of 4.6% in the forecast period.
Drivers & Restraints-
Increasing Demand from High-income Groups to Favor Growth
Luxury goods are mainly purchased by the high-income group across the globe. Oxfam International’s data, for instance, declared in January 2020 that approximately 2,153 billionaires residing worldwide possess more wealth than around 4.6 billion people who make up 60% of the global population. Hence, the increasing wealthy population would bolster the luxury goods market growth in the near future. However, the trends of selling and buying counterfeit products at cheaper rates that resemble original ones may hamper growth.
Clothing Segment to Remain at the Forefront Backed by High Demand from Men & Women
Based on the product type, the clothing segment generated 28.79% in terms of the luxury goods market share in 2019. This growth is attributable to the increasing demand for men and women globally. The bags segment is anticipated to exhibit rapid growth in the upcoming years stoked by the high demand for leather-based products.
Rising Disposable Incomes to Drive Growth in North America
Geographically, Europe earned USD 103.86 billion in 2019 in terms of revenue. It is likely to lead the market throughout the forthcoming years because of the presence of numerous manufacturers in the region, such as Burberry, LVMH, and L’Oréal. In North America, the presence of many rich people in the U.S. would accelerate growth. The market for luxury goods in Asia Pacific is likely to grow at a fast pace fueled by the high disposable incomes of people. Besides, the increasing number of working women in the region would propel growth.
A list of all the renowned luxury goods manufacturers operating in the global market:
- LVMH Moët Hennessy-Louis Vuitton SA (Paris, France)
- Compagnie Financière Richemont SA (Geneva, Switzerland)
- Kering SA (Paris, France)
- Chow Tai Fook Jewellery Group Limited (Central, Hong Kong)
- The Estée Lauder Companies Inc. (New York, U.S.)
- Luxottica Group SpA (Milan, Italy)