According to a report released by Research and Markets, the luxury industry continues to experience strong sales growth, with the high-end market estimated to be worth $243 billion by 2022. The report highlights the compound annual growth rate of +5.4% expected for the industry by 2030. Notably, luxury groups such as Hermès, Kering, LVMH, and Hugo Boss are projected to see impressive growth rates of +23%, +15%, +23%, and +27% respectively, indicating that these firms have been less affected by the recent crisis compared to the previous year.
The “Luxury Products: Global Strategic Report on Activities” by Research and Markets examines the sales growth of renowned brands like Versace, Prada, Chanel, Giorgio Armani, and Rolex to determine the value of the high-end market. Based on their analysis, the sector’s sales are expected to reach $370 billion by the end of the decade, demonstrating an average annual growth rate of +5.4% from 2022 to 2030. However, the report also cautions about potential uncertainties in the coming months, such as the Russo-Ukrainian conflict, inflation, and the aftermath of the Covid-19 pandemic. Despite these challenges, the report emphasizes that resilient and adaptable companies still have opportunities to thrive.
The report also delves into specific sectors within the luxury industry. It predicts that the apparel segment will experience an annual growth rate of +6.7% until 2030, reaching a value of $115 billion. Additionally, the sales of cosmetics and fragrances are expected to increase by +5.6% during the same period. The Asia-Pacific region, particularly China, plays a vital role in driving these potential results. With an estimated value of $70 billion, China’s contribution to the high-end market is projected to grow by +7.3% annually from 2022 to 2030. Other markets, such as Europe, Japan, and Canada, are also anticipated to experience respective annual growth rates of +4%, +4.2%, and +5.6% by 2030.
While Research and Markets anticipates significant growth in the consumption of luxury products worldwide, their study also explores the outlook for the second-hand luxury market in Europe. With an impressive annual growth rate of +8.11%, the high-end second-hand market could potentially reach sales of $26.5 billion by 2028.
Useful Links:
1. [Luxury Products: Global Strategic Report on Activities](insert-link-here)
2. [Outlook for the Second-Hand Luxury Market in Europe](insert-link-here)
