Luxury Industry Report And Statistics (2024)

Last Updated on December 28, 2023 by Ch David

This research article delves into the Luxury Industry‘s revenue, valuation, growth, key players, customer demography, and more.

Amazing Facts about the Luxury Industry

• Revenue: $355 billion in 2023, with an expected annual growth of 3.38% (CAGR 2023-2028).
• Largest Segment: Luxury Fashion, generating $112 billion in 2023.
• Leading Revenue: United States, contributing $75.69 billion in 2023.
• Per Person Revenue: $46.18 in 2023.
• Online Impact: By 2023, 22.4% of total revenue will come from online sales.

Luxury Fashion Industry

• Revenue: $112 billion in 2023, with a projected annual growth of 3.39% (CAGR 2023-2028).
• Leading Revenue: United States, generating $27.15 billion in 2023.
• Per Person Revenue: $14.51 in 2023.

Luxury Leather Goods Industry

• Revenue: $76 billion in 2023, with an estimated annual growth of 4.03% (CAGR 2023-2028).
• Leading Revenue: United States, contributing $18.85 billion in 2023.
• Per Person Revenue: $9.87 in 2023.

Luxury Watches & Jewelry Industry

• Revenue: $75 billion in 2023, with an expected annual growth of 2.50% (CAGR 2023-2028).
• Leading Revenue: China, generating $24.5 billion in 2023.
• Per Person Revenue: $9.76 in 2023.

Luxury Cosmetics & Fragrances Industry

• Revenue: $71 billion in 2023, with a projected annual growth of 4.00% (CAGR 2023-2028).
• Leading Revenue: United States, with $12.7 billion in 2023.
• Per Person Revenue: $9.28 in 2023.

Luxury Eyewear Industry

• Revenue: $21 billion in 2023, expected to grow by 1.88% annually (CAGR 2023-2028).
• Leading Revenue: United States, contributing $8.495 billion in 2023.
• Per Person Revenue: $2.77 in 2023.

Luxury Industry Market Value

The luxury industry’s market value in 2022, reached €353 billion (about $383 billion USD), compared to €262 billion (about $285 billion USD) in 2018.

Year	Luxury Industry Market Value (EUR)	Luxury Industry Market Value (USD)
2022	€353 billion	$383 billion
2021	€290 billion	$315 billion
2020	€220 billion	$239 billion
2019	€281 billion	$305 billion
2018	€262 billion	$285 billion
2017	€254 billion	$276 billion
2016	€244 billion	$265 billion
2015	€245 billion	$266 billion
2014	€219 billion	$238 billion
2013	€212 billion	$230 billion

Source: Statista

Luxury Industry Market Value by Sales Channels

In 2022, the luxury industry’s market value by sales channels was led by Monobrand stores with €120.02 billion ($130.55 billion USD) and online at €74.13 billion ($80.64 billion USD).

Specialty stores, department stores, outlets, and travel retail (airport) also had major contributions.

Luxury Industry Sales Channels	Luxury Industry Market Value (EUR)	Luxury Industry Market Value (USD)
Monobrand stores	€120.02 billion	$130.55 billion
Online	€74.13 billion	$80.64 billion
Specialty stores	€52.95 billion	$57.6 billion
Department stores	€52.95 billion	$57.6 billion
Outlet	€42.36 billion	$46 billion
Travel Retail	€10.59 billion	$11.52 billion

Source: Statista

Luxury Industry Revenue

Luxury Goods market revenue was $355 billion in 2023, with a projected annual growth rate of 3.38%. It showed consistent growth from $286 billion in 2018 to $355 billion in 2023.

Year	Luxury Industry Revenue
2023	$355 billion
2022	$313 billion
2021	$294 billion
2020	$259 billion
2019	$306 billion
2018	$286 billion

Source: Statista

Luxury Industry Revenue by Country

The United States stands as the top revenue generator in the Luxury Goods industry with $75.69 billion in 2023, followed by China at $53.61 billion and Japan at $30.49 billion.

Other prominent contributors include the United Kingdom, Italy, and Germany, each surpassing $12 billion.

Spain, India, and Australia also make significant contributions, each exceeding $7 billion in luxury revenue.

Country	2023	2022	2021	2020	2019	2018
United States	$75.69 billion	$69.52 billion	$64.12 billion	$59.11 billion	$68.94 billion	$64.34 billion
China	$53.61 billion	$48.91 billion	$42.70 billion	$40.24 billion	$44.09 billion	$39.98 billion
Japan	$30.49 billion	$26.40 billion	$25.98 billion	$24.78 billion	$25.89 billion	$23.47 billion
France	$18.32 billion	$14.56 billion	$15.08 billion	$12.99 billion	$15.76 billion	$15.55 billion
United Kingdom	$16.37 billion	$13.73 billion	$13.54 billion	$10.87 billion	$12.91 billion	$12.22 billion
Italy	$15.37 billion	$12.32 billion	$12.90 billion	$11.03 billion	$13.78 billion	$13.87 billion
Germany	$15.33 billion	$12.14 billion	$12.50 billion	$11.55 billion	$12.82 billion	$12.51 billion
Spain	$8.85 billion	$6.59 billion	$7.08 billion	$5.85 billion	$7.23 billion	$6.99 billion
India	$7.74 billion	$7.52 billion	$5.19 billion	$4.58 billion	$6.94 billion	$6.09 billion
Australia	$7.04 billion	$6.27 billion	$6.48 billion	$4.42 billion	$5.71 billion	$5.43 billion
Canada	$6.89 billion	$6.25 billion	$5.75 billion	$4.93 billion	$5.77 billion	$5.48 billion
South Korea	$6.73 billion	$6.01 billion	$5.76 billion	$4.44 billion	$5.15 billion	$4.70 billion
Switzerland	$4.96 billion	$4.29 billion	$4.61 billion	$3.98 billion	$4.25 billion	$4.00 billion
Thailand	$4.64 billion	$4.28 billion	$3.24 billion	$3.10 billion	$3.23 billion	$2.63 billion
Netherlands	$4.25 billion	$3.53 billion	$3.51 billion	$3.10 billion	$3.31 billion	$3.14 billion

Source: Statista

Luxury Industry Revenue by Product Categories

The biggest product category is Luxury Fashion, generating $112 billion in 2023.

Other major categories include Luxury Watches & Jewelry ($75 billion), Luxury Leather Goods ($76 billion), and Prestige Cosmetics & Fragrances ($71 billion).

Luxury Eyewear also contributes $21 billion in revenue.

Luxury Product Category	2023	2022	2021	2020	2019	2018
Luxury Eyewear	$21 billion	$19 billion	$18 billion	$16 billion	$20 billion	$19 billion
Luxury Fashion	$112 billion	$97 billion	$93 billion	$86 billion	$96 billion	$91 billion
Luxury Leather Goods	$76 billion	$66 billion	$63 billion	$52 billion	$62 billion	$57 billion
Luxury Watches & Jewelry	$75 billion	$68 billion	$64 billion	$55 billion	$67 billion	$63 billion
Prestige Cosmetics & Fragrances	$71 billion	$62 billion	$57 billion	$51 billion	$61 billion	$57 billion

Source: Statista

Customers’ revenue contribution to the Luxury Industry

In 2023, each person contributes about US$46.18 to the luxury industry’s revenues.

Luxury Fashion generates $14.51 per person, Luxury Watches & Jewelry contributes $9.76, Luxury Leather Goods account for $9.87, Prestige Cosmetics & Fragrances bring in $9.28, and Luxury Eyewear amounts to $2.77 per person.

Luxury Product Category	2023	2022	2021	2020	2019	2018
Luxury Eyewear	$2.77	$2.48	$2.33	$2.09	$2.65	$2.59
Luxury Fashion	$14.51	$12.77	$12.29	$11.46	$12.96	$12.38
Luxury Leather Goods	$9.87	$8.7	$8.32	$6.96	$8.4	$7.74
Luxury Watches & Jewelry	$9.76	$8.93	$8.49	$7.4	$9.04	$8.55
Prestige Cosmetics & Fragrances	$9.28	$8.19	$7.57	$6.8	$8.26	$7.83

Source: Statista

Luxury Industry Share by Region

In 2022, the global luxury goods market was distributed among regions as follows: Americas 32%, Europe 27%, China 17%, Rest of Asia 14%, Japan 7%, and Rest of the World 4%.

Luxury Industry Region	Luxury Industry Market share
Americas	32%
Europe	27%
China	17%
Rest of Asia	14%
Japan	7%
Rest of world	4%

Source: Statista

Growth of the Luxury Industry by region

In 2022, the luxury goods market experienced diverse growth rates: Europe at 27%, the Americas at 25%, Asia (excluding Japan, including India) at 15%, Japan at 18%, and the rest of the World at 21%.

Region/Country	Luxury Industry Year-over-year growth
Americas	25%
Asia (excluding Japan, including India)	15%
Europe	27%
Japan	18%
Rest of world	21%

Source: Statista

Overview of luxury industry selling channels

In 2023, online sales will contribute 22.4% of Luxury Goods market revenue, while offline sales will make up the remaining 77.6%.

Year	Luxury Industry Offline Sales Channel	Luxury Industry Online Sales Channel
2023	77.6%	22.4%
2022	79.2%	20.8%
2021	80.6%	19.4%
2020	82%	18%
2019	86.1%	13.9%
2018	86.8%	13.2%
2017	87.4%	12.6%

Source: Statista

Who are the Key Players in the Luxury Industry?

Top players in the Luxury Industry are LVMH (15% market share), Estée Lauder, Kering, and L’Oréal (each 5% market share), while other brands account for 70% of the market.

Brands	Luxury Industry Market Share
LVMH	15%
Estée Lauder	5%
Kering	5%
L’Oréal	5%
Other	70%

Source: Statista

What are the Most Valuable Luxury Brands?

Louis Vuitton leads as the most valuable luxury brand with $124.27 billion.

Hermès follows at $80.32 billion, then Chanel at $53.02 billion, Gucci at $37.89 billion, and Dior at $10.53 billion.

Brands	Brand value
Louis Vuitton	$124.27 billion
Hermès	$80.32 billion
Chanel	$53.02 billion
Gucci	$37.89 billion
Dior	$10.53 billion
Cartier	$10.11 billion
Rolex	$9.04 billion
Saint-Laurent / Yves Saint Laurent	$6.80 billion
Tiffany & Co.	$6.72 billion
Prada	$5.64 billion

Source: Statista

What are the Most Popular Luxury Brands Online?

Dior stands as the most popular luxury brand online with a score of 93 out of 100 in spring 2022. Gucci follows closely with 91 points, and Louis Vuitton with 87 points.

The ranking is based on factors like Google search volume, website traffic, and social media engagement.

Luxury brands	Luxury brands index score (1 to 100)
Dior	93
Gucci	91
Louis Vuitton	87
Chanel	84
Prada	80
Valentino	79
Ralph Lauren	74
Saint Laurent	74
Versace	73
Alexander McQueen	70

Source: Statista

Luxury Industry Customer Demography

Luxury Industry Customer by Gender

In a 2022 Chinese luxury consumption survey, 54% of luxury buyers were women, and women also made up 60% of high-spending consumers.

Men constituted 46% of the customer base.

Luxury Goods Customer Gender	Share of respondents
Female	54%
Male	46%

Source: Statista

Luxury Industry Customer by Age Group

In 2018, Millennials made up 32% of the luxury market, expected to grow to 50% by 2025 according to analysis. In 2022, Generation Z and Millennials comprised 65% of the market, valued at 353 billion euros.

Baby Boomers had 11%, Gen X 25%, and Gen Z 18% of the market share.

Luxury Goods Customer Generation	2018	2022
Gen Z (11 – 26)	4%	18%
Millennials (27 – 42)	32%	47%
Gen X (43 – 57)	38%	25%
Baby Boomers and Silvers (58+)	26%	11%

Source: Statista, Statista

Frequently Asked Questions About the Luxury Industry

How do you classify luxury goods?

• Higher Pricing: Luxury items generally command higher prices compared to similar products.
• Perceived Value: They often carry an enhanced sense of value, even beyond their cost.
• Exclusivity: Luxury goods are limited in availability, adding to their allure.
• Target Market: Primarily aimed at affluent consumers seeking status and exclusivity.
• Product Categories: Spanning fashion, accessories, jewelry, watches, cars, homes, and travel.
• Craftsmanship: Known for their impeccable craftsmanship and premium materials.
• Unique Design: Distinguished by unique and distinct designs.
• Strong Brand Identity: Luxury brands are renowned for their quality and exclusivity.

What are the types of luxury?/What are the luxury sectors?

• Personal luxury: Designer clothing, accessories, and beauty products.
• Experiential luxury: Gourmet dining, travel, spa treatments, and exclusive events.
• Artisanal luxury: Handcrafted items emphasizing craftsmanship.
• Cultural luxury: Art, antiques, and heritage items.
• Technological luxury: Cutting-edge gadgets and exclusive technology.
• Service luxury: Personal concierge, tailored travel, and shopping experiences.
• Emotional: Items with sentimental value or personal significance.
• Sustainable: Environmentally and ethically conscious products and experiences.

What is the difference between normal goods and luxury goods?

The difference between normal goods and luxury goods can be summarized as follows:

• Price: Normal goods are affordable, luxury goods are expensive and exclusive.
• Demand: Normal goods have elastic demand, and luxury goods have inelastic demand.
• Consumer Behavior: Normal goods serve basic needs, and luxury goods emphasize status.
• Income Sensitivity: Normal goods’ demand rises with income, luxury goods’ demand may rise disproportionately.
• Marketing: Luxury goods focus on branding and exclusivity, while normal goods prioritize utility.
• Product: Luxury goods are unique and high-quality, normal goods are mass-produced.
• Market Share: Normal goods have a larger market share, and luxury goods have higher margins.
• Perception: Luxury goods are associated with status, while normal goods lack exclusivity.

How can go tell fake luxury products?

• Price: Suspiciously low prices often indicate a fake.
• Packaging: Authentic items have high-quality packaging and accessories.
• Logo and Branding: Look for accurate logos and font alignment.
• Quality: Check for impeccable craftsmanship and premium materials.
• Materials: Be wary of cheap or unfamiliar materials.
• Serial Numbers: Verify accurate serial numbers and labels.
• Retailer Reputation: Buy from reputable, authorized sellers.
• Common Sense: If a deal seems too good to be true, it likely is.
• Online Purchase: Be cautious when buying luxury goods online.
• Authentication Services: Consider professional verification or expert advice like Legit Check.

How big is the luxury goods industry?

As of 2023, the luxury goods industry revenue amounts to US$355 billion in 2023 and is expected to grow annually by 3.38% (CAGR 2023-2028).

Which country has the biggest luxury market?

The United States is the biggest luxury market generating, $75.69 billion in 2023.

Who is the target market for luxury goods?

The target market for luxury goods can vary depending on the specific product or brand, but these are some of the most common characteristics of luxury consumers.

• High-income earners.
• Aspirational consumers.
• Brand conscious.
• Willing to spend.
• Fashion conscious.