Proof of authenticity is the main factor that consumers are interested in when buying luxury across all regions. As the challenge of navigating counterfeits and dupes becomes more complex, retailers must take transparency seriously and use the latest technology to meet these expectations, particularly amid a host of new legislation on sustainability.
The luxury market is navigating economic headwinds as spending on the market softens from a pandemic-era boom. Eroding purchasing power among emergent and aspirational consumers will intensify competition as brands vie for a small percent of affluent consumers.
As consumers become more conscientious about their spending, they are prioritising luxury items that contribute to their happiness and wellbeing. In-store experiences are also a key area of interest for shoppers, and retailers can embrace the Mintel Trend “Slow It All Down” by creating a calming environment for consumers to escape, as well as offering unique products and services that tie into the brand’s story.
This report looks at the following areas:
- The short-, medium- and long-term impact of inflation/supply chain issues on the global luxury market, including changing levels of purchasing across different regions.
- Consolidation within the online luxury market as many of the luxury pureplays struggle to differentiate themselves and online sales fall.
- Main purchase drivers when buying luxury goods and the growing focus on buying quality investment pieces.
- Growing consumer interest in proof of authenticity and transparency when buying luxury goods amid an investigation into labour exploitation by luxury brands in their supply chains and upcoming new legislation on sustainability.
As the luxury market faces softening demand, brands need to appeal to a widening base of young and aspirational consumers, as well as shifting perspectives on what luxury means to the average shopper.
Tamara Sender Ceron, Associate Director, Fashion Retail
Market Definitions
For the purposes of this Report, Mintel has used the following definitions:
Luxury goods are priced high and that is often justified by a very high level of craftsmanship. They must have an element of exclusivity and be out of the reach of most mass market buyers, certainly in terms of regular purchasing. However, defining the market can be difficult because perception of luxury can be very subjective. What counts as luxury for one consumer may be considered high-end, mass market by another.
Luxury goods do have certain clear characteristics, which make them something that some people aspire to. For the purpose of this report, in order to be considered luxury, items must have all or most of the following characteristics:
Luxury goods must be highly priced – they must be beyond the reach of the average consumer, thus increasing the desirability of the product
- They are made with high levels of craftsmanship – sometimes made locally in company-owned factories, to ensure quality
- They are aspirational
- They are regarded as symbols of a higher status
- They are discretionary purchases – luxury goods are non-essential
- They are sometimes fashion leaders, though this is not always the case.
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Executive Summary
- The market
- Market predictions
- Global luxury sales slowed to 7.4% increase in 2024
- Graph 1: market size, reported and total retail sales and forecasts (excluding VAT), 2019-29
- Fashion accounts for largest share of luxury market
- Graph 2: percentage analysis of sales by product category, 2023
- Asia-Pacific grew its share of the luxury market
- Online sales decline 5.8%
- Wealth and population of HNWIs grows
- Graph 3: share of wealth of HNWIs, 2023
- Graph 4: HNWIs by level of wealth, 2023
- Luxury purchasing slows across key markets
- Graph 5: luxury purchasing levels, by country, 2022-24
- Footwear and childrenswear drive purchasing
- Graph 6: what luxury products they buy. by country, 2024
- Consumers favour buying in-store
- Graph 7: luxury goods bought in-store in home country, 2024
- Quality of item the main purchasing driver
- Graph 8: luxury purchasing drives, by country, 2024
- Concerns over proof of authenticity grow
- Graph 9: future interest when buying luxury goods, 2024
- Luxury brands enhance online shopping experience with virtual services
- Making luxury fashion accessible
- Opportunities for the luxury retailing market
- How to win in luxury amid a slowdown
- Luxury can tap into wellbeing trend
- Use tech to create a more seamless and personalised experience
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Market Dynamics
- Market size
- Mintel’s market size methodology
- Luxury sales slow
- Global luxury sales slowed to 7.4% increase in 2024
- Market forecast
- Market predictions
- Luxury market will grow at a more moderate rate over next five years
- Graph 10: market size and forecast, reported sales and forecasts (excluding VAT), 2009-29
- Product segmentation
- Mintel’s segmentation methodology
- Fashion accounts for largest share of luxury market
- Graph 11: percentage analysis of sales by product category, 2023
- Luxury sales by product
- Fashion increased its share of the luxury market
- Fashion and leather goods
- Perfumes and cosmetics
- Watches and jewellery
- Regional segmentation
- Mintel’s segmentation methodology
- Market size breakdown
- Graph 12: percentage analysis of sales by region, 2023
- Sales by region
- Asia-Pacific grew its share of the luxury market
- Market drivers
- Economic background
- US to grow by 2.7% and Euro by 1.5%
- Breakdown of GDP percentage growth rates across the globe
- The who, where and why of the luxury goods consumer
- High Net Worth Individuals (HNWIs)
- Wealth and population of HNWIs grows
- Graph 13: HNWIs by level of wealth, 2023
- Graph 14: share of wealth of HNWIs, 2023
- HNWI: regional overview
- Graph 15: world HNWI Population, 2019-23
- Graph 16: world HNWI wealth, 2019-23
- International tourism on the road to recovery
- Graph 17: inbound tourism across the globe, 2019-23
- UK increases purchases of luxury goods domestically
- Graph 18: luxury goods bought in-store in home country, 2024
- Luxury bought online remains robust
- Graph 19: luxury goods bought online, 2024
- Germany and the US increase luxury purchases abroad
- Graph 20: luxury goods bought in-store abroad, 2024
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What Consumers Want and Why
- Who buys luxury goods
- Luxury purchasing mixed across markets in 2024
- Graph 21: luxury purchasing levels, by country, 2022-24
- Retailers need to highlight the ‘feel-good’ factor behind luxury items
- The UK luxury shopper skews to young, affluent males
- Graph 22: who buys luxury goods, by gender and age, household income and financial situation, 2024
- Luxury buying in the US is fuelled by families with young kids
- Graph 23: who buys luxury products, by gender, age, age of children in household, importance of fashion sustainability and financial situation, 2024
- Brand storytelling helps consumers shape their personal identity
- The Chinese luxury shopper is older and from high-income households
- Graph 24: who buys luxury products, by gender, age and household income, 2024
- Males 16-34s and affluent consumers are keen shoppers in Germany
- Graph 25: who buys luxury products, by gender and age, household income and financial situation, 2024
- What they buy
- Clothing and footwear is the most commonly purchased luxury category
- Graph 26: what luxury products they buy, by country, 2024
- Challenge of growing popularity of dupes
- Despite dip in beauty purchasing, brands debut new beauty lines
- Affluent Chinese luxury shoppers are keen beauty and accessory buyers
- Graph 27: what luxury products they buy, by household income, 2024
- UK males buy luxury footwear and watches
- Graph 28: what luxury products they buy, by gender, 2024
- % breakdown of luxury goods bought in 2023 and 2024
- How they buy luxury goods
- Luxury buyers mostly favour buying in-store
- UK and US increase purchases of luxury goods domestically
- Graph 29: luxury goods bought in-store in home country, 2023 and 2024
- Shiseido aims to strengthen its domestic travel retail division with immersive pop-ups
- Luxury bought online declines
- Graph 30: luxury goods bought online, 2023 and 2024
- Retailers should continue to experiment with digital formats
- Mytheresa enlists Obsess on launch of immersive shopping experience for Apple Vision Pro
- Germany and the US increase luxury purchases abroad
- Graph 31: luxury goods bought in-store abroad, 2024
- Graph 32: luxury goods bought in-store abroad, 2023
- Opportunities to tap into cultural festivals and increase spend abroad for Chinese luxury shoppers
- Luxury brands celebrating Lunar New Year
- Luxury good purchasing drivers
- Quality of item the main purchasing driver for luxury shoppers
- Quality of item the main purchasing drivers for luxury shoppers
- Graph 33: luxury purchasing drives, by country, 2024
- Retailers can learn from Vestiaire Collective’s ‘price per use’ approach
- Luxury UK female shoppers look for quality and deals
- Graph 34: luxury purchasing drivers, by gender, 2024
- Younger US luxury shoppers driven by exclusivity and high resale value of luxury goods
- Graph 35: luxury purchasing drivers, by age, 2024
- Making luxury fashion accessible
- Affluent Chinese luxury shoppers are driven by brand reputation
- Graph 36: luxury purchasing drivers, by household income, 2024
- Future interest when buying luxury goods
- Highest interest for proof of authenticity
- Graph 37: future interest when buying luxury goods, 2024
- Creating immersive stores
- Create immersive stores that transport shoppers to new experiences
- Luxury stores should be a space for entertaining and bringing customers closer to brands
- UK affluent shoppers want guarantees when luxury shopping
- Graph 38: future interests when buying luxury goods, by household income, 2024
- German males attracted to online tools for luxury purchases
- Graph 39: future interest when buying luxury goods, by gender and age, 2024
- Luxury brands enhance online shopping experience with virtual services
- Sandro teams up with Fringuant
- US male shoppers want in-store alterations for luxury purchases
- Graph 40: future interest when buying luxury goods, by gender, 2024
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Retailer Activity
- Company metrics
- Leading luxury companies
- Hermes has the highest CAGR
- Graph 41: leading luxury companies, % CAGR in revenues, 2018-23
- Market shares
- LVMH stands out as luxury market leader
- Graph 42: leading luxury goods groups’ shares of all luxury goods sales, 2023
- LVMH gains market share
- Product market shares
- LVMH dominates fashion market
- Graph 43: leading luxury goods groups’ shares of all luxury fashion/leather goods sales, 2023
- L’Oréal dominates beauty market
- Graph 44: leading luxury goods groups’ shares of all luxury perfumes/cosmetics goods sales, 2023
- Richemont dominates watches & jewellery market
- Graph 45: leading luxury goods groups’ shares of all luxury jewellery/watches goods sales, 2023
- Launch activity and innovation
- Proof of authenticity
- Luxury brands enhance online shopping experience
- Valentino partners with WANNA Wear app to pilot virtual try-ons
- Making luxury fashion accessible
- Lancôme launches pop-up store
- Gucci focuses on VIP customers, Diptyque merges commerce with culture
- Online
- The market
- The outlook
- The luxury pureplay market struggles
- The online luxury market consolidates further
- Farfetch sold in pre-pack deal to Coupang
- Losses mount at YNAP in its FY24
- Yoox Net-a-Porter to shutter China operations
- Matches closes its website and stores
- Mytheresa outperforms the market
- Mytheresa expands partnership with Vestiaire Collective to all customers in Europe, the UK and the US
- Cettire Confirms China Launch, Provides FY24 Update
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Appendix
- Report scope and definitions
- Market definition
- Data sources
- Supplementary data – market dynamics
- Market size and forecast
- Product breakdown
- Geographical breakdown
- Consumer research methodology
- Financial definitions
- Abbreviations and terms
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