Right now, at this moment, many luxury analysts are predicting a sort of ‘not big growth’ in luxury sales which would truly be normalizing things after such big growth. The global luxury goods market from 1996 to 2022 had a compound annual growth rate of 6 per cent with only two significant downs. Word is – a significant rebound might come in the second half of 2024. HSBC is expecting an 8 per cent increase in sales growth in 2024.
In 2024, the luxury market is projected to generate a revenue of $368.90 billion.
The largest segment is luxury fashion which is expected to reach a market volume of $115.90 billion in 2024.
Here’s the forecast for 2024 to 2031:
The luxury global market is anticipated to rise at a considerable rate during the forecast period between 2024 to 2031. Right now on trend remains: the luxury sector continuing to offer experiences in the areas of dining, travel and entertainment to build brand value, secure n ew clients and potentially increase reven ue growth in keystone business lines over the next decade.
As of right now – Marc Metrick, CEO of Saks, told Yahoo Finance that he is “not seeing any signs of consumers trading down luxury to save money. Luxury is permanent; luxury is here to stay. People are not going to trade down out of it. Folks that reached in, maybe a few years ago, even last year, might not be reaching in this year, but the core luxury consumer doesn’t trade down” says Metrick. He says looking ahead he believes 2024 will be a year of two halves, which is similar to HSCB’s forecast.
From KraneShares: The luxury market has a proven track record of strength and resilience in uncertain periods thanks to numerous fundamental characteristics tied to the sector. In KraneShares’ last report: ‘Global Luxury: A Golden Opportunity?‘ they covered underlying values like the “true-luxury” consumer and future growth drivers like expanding E-commerce efforts and rising wealth in China. In this report, they will dive into untapped and innovative ways luxury companies can capture new growth, including brand extensions, the U.S. sunbelt boom, and rising wealth in the Middle East.
