2024
9
US Luxury Consumer Market Report 2024
2024-04-26T13:02:45+01:00
REP17619A92_2AC4_4D01_918E_1599083BFEE6
3695
172668
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Report
en_GB
Wealthy consumers comprise a large base of the luxury market, but a younger, less affluent and more diverse generation is emerging, requiring brands to be agile. Brittany Steiger, Senior…

US Luxury Consumer Market Report 2024

£ 3,695 (Excl.Tax)

Report Summary

Stay ahead of the curve and secure future growth for your business with Mintel’s Luxury Consumer Report. The report provides a data-led understanding of luxury consumers and opportunities to appeal in the luxury industry.

Core Topics Analyzed

  • Luxury consumer demographics.
  • Preferences of luxury shoppers and of affluent/high-net-worth consumers.
  • How consumers define and perceive luxury purchases and the concept of luxury.
  • Motivations and barriers to purchasing luxury products and services.
  • Sources of information for learning about luxury products/brands.
  • Brand innovation and marketing activations in the luxury market.

US Luxury Consumer Overview

A new luxury consumer is emerging

As wealth continues to be concentrated among older age groups, a new luxury consumer is also emerging, one that is younger and more diverse. This new generation will define current and future trends with a new and refreshed point of view that values self-identity, expression and cultural heritage. Although aspirational demand has softened amid inflation and economic pressures, this zeitgeist toward luxury favors a shifting focus on accessibility, inclusion and sustainability to expand the limits of what “luxury” means.

Looking ahead for luxury consumers

Luxury brands will be challenged to meet the needs of both affluent traditionalists and the emerging consumer, requiring a balance between an exclusive and prestigious past and a more innovative future. Still, while the luxury consumer may be evolving, most can agree on a high standard for luxury and an enduring legacy of high-quality products and experiences.

Buy the full report for luxury consumer insights that will enable your business to adapt to the facts that matter.

Luxury Consumer Demographics Segmentation

This Report explores the attitudes and behaviors of consumers who have shopped for luxury goods or services, including a segment affluent or high-net-worth consumers.

For the purposes of this Report, Mintel has used the following definitions and demographic segmentation.

  • Luxury shoppers: 886 internet users aged 18+ who purchased a luxury product/service in the last two years.
  • Aspirational luxury shoppers: 452 internet users aged 18+ who have not purchased a luxury product/service in the last two years, but aspire to do so in the future.
  • General population (Genpop): internet users aged 18+; this group is representative of the US adult population as a whole, and includes adults who may also fall into the AHNW category.
  • Affluent/High-Net-Worth (AHNW) consumers: internet users aged 18+ who have a total net worth of $500K-$999.9K (affluent)/internet users aged 18+ who have a total net worth of $1 million+ (HNW).
  • Luxury goods/services: items or experiences that are priced high, often justified by a very high level of craftsmanship or service. They must have an element of exclusivity and be out of the reach of most mass-market buyers, certainly in terms of regular purchasing.

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Meet the Expert

Brittany joined Mintel in October 2021 as a Senior Analyst for Retail & eCommerce. She comes with more than 15 years’ experience in the retail industry, from sales to merchandising to consumer insights. She brings to Mintel a creative, collaborative and curious mindset and a passion for exploring the connections between consumers and brands.

Wealthy consumers comprise a large base of the luxury market, but a younger, less affluent and more diverse generation is emerging, requiring brands to be agile.

Brittany Steiger Senior Analyst, Retail & eCommerce
Brittany Steiger
Senior Analyst, US Retail and eCommerce Reports

Table of Contents

  1. Executive Summary

    • What you need to know
    • Consumer trends: key takeaways
    • Market predictions
    • Opportunities
  2. Market Dynamics

    • Market context
    • Market drivers
    • An improving economy could buoy the luxury consumer
    • Graph 1: consumer spending habits – cut backs on dining out/leisure, luxuries/non-essentials, 2023-24
    • Economic indicators trend positive
    • Graph 2: headline CPI, 2022-24
    • Graph 3: quarterly real GDP growth, 2020-23
    • Consumers are the most upbeat they have been in nearly three years
    • Graph 4: consumer sentiment index, 2021-24
    • Net wealth remains concentrated among older Americans
    • Graph 5: median net worth of consumers in US dollars (thousands), by age, 2019 and 2022
    • Long-standing income inequalities limit the spending power of Black and Hispanic consumers
    • Graph 6: median household income, by race and Hispanic origin, 2013-22
    • Graph 7: median household income, by race and Hispanic origin, 2022
    • Digital innovation enables a new era of personalization and connectivity
    • Market landscape
    • Global market for luxury goods enjoyed a post-pandemic surge
    • Americas region accounts for a quarter of global luxury sales
    • Graph 8: percentage analysis of sales by region, 2022
    • Luxury sales soften amid economic pressures
  3. Consumer Insights

    • Consumer fast facts
    • Affluent/HNW and luxury consumer profiles
    • The affluent/high-net-worth consumer
    • Affluent/High-Net-Worth consumers skew older and White
    • Not all luxury consumers are considered affluent
    • Graph 9: luxury shopper segments, by AHNW consumers vs general population, 2024
    • The new luxury shopper
    • Gen Z and Millennials are luxury shoppers
    • Aspirational luxury enthusiasts
    • Aspirational segment holds potential, but purchasing power is limited
    • The luxury consumer is diversifying
    • Meaning of luxury
    • “Luxury” can be both emotional and tangible
    • Graph 10: meaning of luxury, by AHNW consumers vs general population, 2024
    • In their own words: consumers describe what “luxury” means to them
    • Consumers explain the difference between luxury as an emotion and luxury as a price tag
    • Not everyone has experienced luxury, but most equate it with pleasure
    • Men are emotionally invested in the status of luxury
    • Graph 11: meaning of luxury, by gender, AHNW consumers vs general population, 2024
    • Younger generations bring a fresh point of view
    • Graph 12: meaning of luxury, by generation, 2024
    • Young affluents have especially high standards
    • Graph 13: meaning of luxury – among ages 18-44, by AHNW vs general population, 2024
    • Multicultural consumers seek unique, pleasurable and trend-forward luxury experiences
    • Graph 14: meaning of luxury, by race and Hispanic origin, 2024
    • Defining characteristics of luxury brands
    • Craftsmanship and exclusivity are hallmarks of luxury brands
    • Graph 15: what defines a luxury purchase, by AHNW consumers vs general population, 2024
    • Quality, exclusivity and designer labels became more important over the last decade
    • Graph 16: what defines a luxury purchase, general population, 2014 vs 2024
    • Quiet Luxury shifts focus toward timeless, high-quality pieces
    • Luxury brands tap into old money aesthetics
    • Affluent men are a key demographic for quiet luxury
    • Graph 17: what defines a luxury purchase, by gender, by AHNW consumers vs general population, 2024
    • There’s still a case to be made for designer logos and “loud luxury”
    • Graph 18: Google search trends for “quiet luxury” and “loud luxury”, 2024
    • Luxury brands position louder looks to resonate with youthful trends
    • Designer logos and limited-edition items appeal to the aspirational segment
    • Graph 19: what defines a luxury purchase, by luxury shopping history, 2024
    • Internet culture drives exclusivity and rarity
    • An era of hyper-personalization is dawning
    • Graph 20: what defines a luxury purchase – ability to customize, by generation, age and affluence, 2024
    • Attitudes toward luxury and luxury purchases
    • Consumers set the bar high for luxury brands
    • Graph 21: select attitudes toward luxury and luxury brands, by luxury and aspirational shoppers vs non-buyers, 2024
    • Graph 22: select attitudes toward luxury and luxury brands, by AHNW consumers vs general population, 2024
    • The gold standard of luxury
    • Tap into young consumers’ need for exploration and self-expression
    • Graph 23: attitudes toward luxury and self-identity, by generation, 2024
    • Brand storytelling helps consumers shape their personal identity
    • Black and Hispanic consumers hold luxury in high esteem
    • Graph 24: select attitudes toward luxury and luxury brands, by race and Hispanic origin, 2024
    • Luxury products purchased
    • Personal luxury goods remain at the heart of the luxury market
    • Graph 25: luxury items purchased in the past two years, 2024
    • Affluent consumers favor big-ticket investment pieces
    • Graph 26: luxury items purchased in the past two years, by AHNW consumers vs general population, 2024
    • Collaborations and partnerships allow brands to expand into new markets
    • Men shop more categories, but women splurge on small luxuries
    • Graph 27: luxury items purchased in the past two years, by gender, 2024
    • Key men’s and women’s categories reflect evolving trends
    • Accessories make the outfit
    • Younger affluents prop up luxury purchases
    • Graph 28: luxury items purchased in the past two years, by age, AHNW vs general population, 2024
    • Look to broader generational trends to target young consumers across the wealth spectrum
    • Graph 29: luxury items purchased in the past two years, by generation, 2024
    • Multicultural consumers express themselves through fashion and beauty
    • Graph 30: select luxury purchases in the past two years, by race and Hispanic origin, 2024
    • Fashion has strong ties to Black culture
    • Hispanic consumers find self-expression with hairstyles and makeup
    • Luxury services and experiences
    • High-end experiences define the luxury lifestyle
    • Graph 31: luxury services and experiences in the past two years, by AHNW consumers vs general population, 2024
    • Consumers want to experience the finer things in life
    • In their own words: consumers most aspire to have luxury experiences
    • Age and lifestage play a role in luxury living
    • Graph 32: luxury services and experiences in the past two years, by age, 2024
    • Luxury dining offers a taste of the high life
    • Discovery and personalization help elevate the experience
    • Luxury travel has the potential to thrive as consumers re-prioritize experiences
    • Graph 33: participation in luxury travel in the past two years, by age, AHNW consumers vs general population, 2024
    • Appeal to affluent travelers’ desire for exploration
    • Pelorus Travel satisifes a desire for adventure
    • Women seek luxury through self-care
    • Graph 34: spa treatments in the past two years, by age and gender, AHNW consumers vs general population, 2024
    • Gen Z and Millennials splurge on live entertainment
    • Brands mustn’t overlook older consumers
    • Motivations for buying luxury goods and services
    • Consumers treat themselves to quality experiences
    • Graph 35: luxury purchase motivations, by AHNW consumers vs general population, 2024
    • Brands can tap into both practical and emotional drivers
    • Women buy luxury to treat themselves and boost wellbeing, while men want to feel confident and stand out from the crowd
    • Graph 36: luxury purchase motivations, by gender, 2024
    • Rolex sells a culture of excellence and distinction
    • A new luxury mindset is emerging
    • Graph 37: motivations for buying luxury goods/services, by age, AHNW consumers vs general population, 2024
    • Luxury brands must embrace inclusive storytelling
    • Graph 38: select luxury purchase motivations, by race and Hispanic origin, 2024
    • Collaborations bring in diverse perspectives
    • Barriers to buying luxury
    • Expense, lack of interest are primary barriers
    • Graph 39: barriers to luxury purchases, by AHNW worth consumers vs general population, 2024
    • Older consumers are the primary source of indifference
    • Graph 40: barriers to luxury purchases, by age, AHNW consumers vs general population, 2024
    • Aspirational consumers have the desire but not the purchasing power
    • Graph 41: reasons for not buying luxury, aspirational vs non-aspirational consumers, 2024
    • Cost is also a deterrent for multicultural consumers
    • Graph 42: reasons for not buying luxury, by race and Hispanic origin, 2024
    • The economics of luxury purchases
    • Inflation has stifled luxury spending
    • Shoppers are open to paying full price, but discounting helps
    • Graph 43: attitudes toward the price of luxury goods/services, by AHNW consumers vs general population, 2024
    • For some luxury shoppers, part of the thrill may be in chasing the deal
    • Graph 44: attitudes toward luxury and affordability, by AHNW consumers vs general population, 2024
    • Graph 45: attitudes toward luxury and affordability, by luxury shoppers vs non-buyers, 2024
    • Women are more budget-conscious shoppers
    • Graph 46: attitudes toward luxury spending, by gender, AHNW consumers vs general population, 2024
    • Brands need to explore new formats for value creation
    • Luxury brands find new ways to embrace value shoppers
    • The circular economy will keep booming
    • Mid-market department stores offer a strong middle ground for value-oriented shoppers
    • “Dupe” culture has a grip on Gen Z and Millennials
    • Graph 47: attitudes toward luxury look-a-likes, by key demographics, 2024
    • Brands must take action to combat counterfeit products
    • Sources of information
    • Social media is the prevailing source of influence
    • Graph 48: sources of information, by AHNW consumers vs general population, 2024
    • Communities are shifting online
    • A multi-faceted strategy is crucial to resonate with varying perspectives
    • Graph 49: sources of information, by generation, 2024
    • Create diverse and inclusive online communities
    • Graph 50: sources of information, by Race and Hispanic origin, 2024
    • Brand reputation and word of mouth carry weight with affluent consumers, but age is a major factor
    • Graph 51: sources of information, by age, AHNW consumers vs general population, 2024
    • Build deeper personal relationships with consumers
    • TV, streaming and film allows brands to get cinematic
  4. Innovation and Marketing Trends

    • Pharrell Williams breathes new life into Louis Vuitton’s legacy
    • Storied Collection promotes memory-making adventures
    • A unique and personalized luxury travel experience
    • YaySay app finds the thrill in chasing luxury deals
    • Marketing and advertising
    • The Row heightens exclusivity by restricting social media coverage
    • Loro Piana embraces a sense of humor with Gstaad Guy
    • Brands use celebrity sightings to propel viral moments
    • Opportunities
  5. Appendix

    • Market definition
    • Consumer research methodology
    • Consumer qualitative research methodology
    • Generations
    • Abbreviations and terms
    • Global luxury market size and forecast
    • Breakdown of global market across region

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