The global luxury market is expected to see strong growth of 5 to 12 percent in 2023, driven by post-pandemic demand, according to a report by Bain and Altagamma. Valued between €360 and €380 billion this year, the market is predicted to reach €530 to €570 billion by 2030.
Asia and Europe will fuel this growth, while the US faces a slowdown due to inflation and recession, impacting aspirational luxury spending. China's luxury market is rebounding, with Hong Kong and Macau experiencing a surge in spending by Chinese tourists. Luxury brands are capitalizing on this by hosting exhibitions and collaborating with local talent.
Southeast Asia is also witnessing strong growth, thanks to Russian tourists, Chinese consumers, and increased demand for jewelry and watches. Japan is identified as a rising star, with both local customers and inbound tourists showing a strong interest in popular accessories. In contrast, the US luxury market has plateaued, prompting brands to rethink their strategies.
Affluent Americans are increasingly buying luxury goods abroad due to wider price differences. While areas like New York and California regain popularity, destinations like Hawaii and Las Vegas are yet to fully recover to pre-pandemic levels.
