The global luxury goods market is preparing for a massive amount of positive growth, according to a report from Bain & Company.
Despite uncertain global economies and markets, the luxury goods sector is experiencing a huge boom driven by younger generations. Bain’s Altagamma Luxury Study found that by the end of 2022, the luxury goods market is expected to grow by 21%, and by 2030, accelerated growth will reach 60% – around $560-580 billion. These expectations are based on current numbers, as more than 95% of luxury brands have experienced positive growth in the last year to date.
The personal luxury goods market is anticipated to grow the most — and in particular, the "post-streetwear" trend, such as occasion-less apparel, gender-fluid styles, and inclusive and sports-driven designs. At the same time, Bain says that luxury and art are melding into one, and fine-made artisan craft items with multiple functions and symbolic power are all desirable.
"The new wave of the luxury goods market will demand evolution amid disruption, adaptation amid uncertainty, and an expansion of creativity in all of the basics — all while new trends and concepts develop," said Bain partner Claudia D'Arpizio.
Generational trends will continue to shape how the market grows, as Generation Y and Generation Z consumers accounted for the entire market growth in 2022. These generations have started buying luxury goods at a substantially younger age than their Millennial counterparts. They also value sustainability and buying items that will last a lifetime, so they turn to luxury goods rather than fast fashion.
New markets also include Middle Eastern shoppers, Southeast Asia and Korea, and of course, China, which makes up a significant portion of the buying market.