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- All Industries /
- Retail /
- US Luxury Consumer Market Report 2024
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, US Retail and eCommerce Reports
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Executive Summary
- What you need to know
- Consumer trends: key takeaways
- Market predictions
- Opportunities
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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
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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
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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
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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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