The
global luxury goods market is forecast to grow over a CAGR of more than 8% in
value terms to reach around USD430 billion by 2026. The global luxury goods market
is witnessing consistent growth, owing to the changing consumer taste & preferences,
improving standards of living, and increasing innovation in existing luxury
product offerings.
The popularity of luxury goods items has
increased with the expansion of technological advancements and rapid
urbanization and continuous change in consumer tastes and preferences. Consumers
have become more health-conscious in recent years, and as a result, increased
awareness of skin-related issues among consumers is shifting their preferences
towards higher-priced skincare products. The demand for luxury cosmetics is
increasing at a faster rate, especially since the COVID-19 lockdown, when
people were unable to leave their homes and instead focus on meeting their
healthcare needs online.
The
global luxury goods market can be segregated into type, distribution channel,
region, and company. Based on type, the global luxury goods market is further
split into Jewelry & Watches, Clothing & Footwear, Bags &
Accessories and Cosmetics & Fragrances. Among which, the jewelry &
watches segment have accounted for the majority of the share around 30% in the
global luxury goods market in 2020. This is due to increasing penetration of
the organized sector, coupled with evolving consumer lifestyle and growing
disposable income. Furthermore, with the growing magnitude of festival
celebrations across the world, the jewelry demand is visibly going up.
Based
on distribution channels, the global luxury goods market is divided into By
Distribution Channel (Exclusive Stores, Airports, E-Commerce, Specialty Store
& Others (Departmental Stores, Hypermarket/Supermarket, Multi-Branded
Stores etc.). Among which, Exclusive Stores hold the majority of the market
share in the global luxury goods market and will continue to dominate the
market throughout the forecast period. Among
the other distribution channels in the global luxury goods market, the
e-commerce sales channel is expected to grow the fastest. During the forecast
period, the segment is expected to grow at a CAGR of 10.85 percent. The rapid
growth of online retail, particularly in the post-COVID-19 era, has caused
companies to reconsider their distribution strategy. Because of the low
operating costs, the online retail market is an appealing option for apparel
companies.
In
terms of region, the global luxury goods market is segmented into Europe, North
America, Asia-Pacific, Middle East & Africa & South America. Among
which, the Europe region has accounted for the majority of market share in the
global luxury goods market followed by North America in 2020 and will continue
to dominate the market throughout the forecast period as well. This is due to the
presence of large number of millennium consumer, strong economic condition and
presence of various brands across the region.
Some
of the leading players in the global luxury goods market are LVMH Group, Compagnie Financière Richemont SA,
Kering SA, L’Oréal S.A., Chanel Limited, PVH Corp., The Estée Lauder Companies
Inc., The Swatch Group Ltd., Rolex SA, Prada S.p.A, etc. The companies
are developing advanced technologies and launching new products to stay
competitive in the market. Other competitive strategies include mergers &
acquisitions and new service developments.
Years
considered for this report:
Historical Years: 2016-2019
Base Year: 2020
Estimated Year: 2021E
Forecast Period: 2022F-2026F
Objective of the Study:
- To analyze the historical growth in the market
size of global luxury goods market from 2016 to 2020.
- To estimate and forecast the market size of global
luxury goods market from 2021 to 2026 and growth rate until 2026.
- To classify and forecast global luxury goods market
based on by type, by distribution
channel, by region and by company.
- To identify dominant region or segment in the global
luxury goods market.
- To identify drivers and challenges for global luxury
goods market.
- To examine competitive developments such as
expansions, new product launches, mergers and acquisitions, etc., in global
luxury goods market.
- To identify and analyze the profile of leading
players operating in global luxury goods market.
- To identify key sustainable strategies adopted
by market players in global luxury goods market.