According to the study carried out in partnership with the Altagamma Foundation, the “Americas”, mainly the United States, remain the leading luxury market with 89 billion euros. China could take the lead in 2025.
The luxury market rebounded in 2021 to return to pre-pandemic levels “faster than expected”, thanks to the Chinese and American markets, according to the annual study by Bain and Company, a benchmark in the sector.
The market for luxury personal products – leather goods, fashion, watches, jewelry, perfumes and cosmetics – is expected to represent 283 billion euros this year, up 1% compared to 2019, before the pandemic, according to the study published Thursday and carried out in partnership with the Altagamma Foundation, which brings together the big names in Italian luxury.
“Last spring when we imagined a return to growth, it was rather in 2022”, emphasizes to AFP Joëlle de Montgolfier, luxury expert at Bain and Company.
The “Americas”, mainly the United States, remain the leading luxury market with 89 billion euros (+ 6% compared to 2019), or 31% of the global market.
But this year, we note “the emergence of new places of consumption – which correspond somewhat to demography and the American economy – such as Pittsburgh, Denver, Austin”, specifies Joëlle de Montgolfier. They are “cities outside the traditional engines that were New York, Washington, Boston, Los Angeles, Dallas,” she adds.
The resumption of international travel
The study also underlines a strong evolution of the market shares of European brands for this geographic sector. The Chinese market has doubled in size in two years reaching 60 billion euros (21% of the global market) mainly because of the inability to travel. China could match or even overtake the US market in 2025, according to Bain.
In terms of growth, the Middle East is defending itself well, increasing by 4% compared to 2019 to 12 billion euros with Dubai and Saudi Arabia in the lead. Europe (71 billion), Japan (20 billion) and the rest of Asia (32 billion) recovered in 2021 but have not returned to their 2019 level.
“Their return is linked to the resumption of international travel,” according to the study. Japan should thus return to its pre-crisis levels in 2023 and Europe in 2024.
Regarding purchasing behavior, Bain stresses that online sales have almost doubled over two years to reach 62 billion euros. The firm predicts that the “personal luxury goods market could reach 360 to 380 billion euros in 2025, with sustained growth of 6 to 8% per year”.
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