Global Personal Luxury Goods Market Research Report 2021-2030

The global personal luxury goods market is expected to grow at a CAGR of 4.24% from 2024 to 2030.

IMPACT OF THE U.S. & CHINA TRADE WAR

The ongoing geopolitical tensions between the U.S. and China, a trade war that is likely to disrupt the global personal luxury goods market. Tariffs, export controls, and restricted access to raw materials are likely to raise production costs and cause delays, which lead to higher prices and limited availability in global markets. Furthermore, several key American companies like Tiffany & Co., Michale Kors and others is expected to face significant challenges because of the rising tariffs rates as U.S. has imposed over 104% tariff on Chinese chemical imports which is likely to raise production costs and strain supply chains across sectors like cosmetic, personal care, and fragrances among others. Thus, the market conditions reflect growing concerns about competitive pressures in the aromatic chemical industry, specifically from Chinese companies developing more cost-effective solutions.

PERSONAL LUXURY GOODS MARKET TRENDS & DRIVERS

Consumers are increasingly interested in luxury goods that are designed with circular economic principles, such as those that can be easily upcycled. Gucci was the first luxury brand to use ECONYL recycled nylon in ready-wear pieces, which is a 100% recycled nylon derived from fishing nets, textile waste, and a thick pile fabric used for carpets and upholstery.

Luxury brands have increasingly adopted online approaches to meet evolving consumer expectations. For instance, in 2023, Dior was the most popular luxury brand online because of its strategic investments in digital marketing, e-commerce, and social media engagement. This approach helped the brand to engage a wider audience, which has boosted its online sales, especially in markets like China and the US.

Brands strategically position themselves to capture renewed demand from urban areas. For instance, Dior expanded its Dioriviera pop-up shops in places like Bali and Phuket. It has created immersive experiences that resonate with travelers seeking exclusivity. Hence, such factors are supporting the demand for the personal luxury goods market across emerging nations.

As the global economies continue to grow, disposable income levels rise, leading to increased spending on luxury items like footwear. Consumers are increasingly inclined towards luxury footwear because of changing lifestyles and fashion trends. Luxury footwear companies are focusing on the growing consumer base in developing countries such as India and other Southeast Asian countries, where wealth and demand for luxury goods are rising. In 2022, Louis Vuitton introduced its exclusive footwear collection for the Indian market, which features new colors like Rani Pink and glittering designs for celebrating India's cultural heritage.

Urbanization in emerging markets such as China, India, and Southeast Asia continues to drive demand for the personal luxury goods market. In India, platforms like Luxepolis have significantly supported the development of the market by offering new and pre-owned luxury items to a growing audience in smaller cities, as the growing urban population increases the demand for high-end items. Brands are strategically positioning themselves to capture renewed demand from urban areas. For instance, Dior expanded its Dioriviera pop-up shops to places like Bali and Phuket. Additionally, collaborations between fashion houses and hospitality venues such as Fendi's beach club in Marbella have created immersive experiences that resonate with travelers seeking exclusivity.

INDUSTRY RESTRAINTS

The disruption in the supply chain has led to increased costs for raw materials, logistics, and transportation, which have raised operational costs and are often passed on to end consumers which leading to higher luxury goods prices. The focus on limited production to maintain exclusivity significantly raises the production costs for luxury brands. Brands often face higher unit costs for manufacturing, sourcing premium materials, and utilizing skilled labor for producing limited edition items. This limits scalability and hampers the personal luxury goods market demand. Furthermore, major brands occasionally face backlash for products or marketing campaigns, such as Louis Vuitton for selling a scarf inspired by the Palestinian keffiyeh and a jacket that seems to present Jamaican culture by using the country's flags but incorrectly represented. These factors hamper the brand value and show the need for careful consideration in global marketing efforts.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT TYPE

In 2024, the watches and jewelry segment has the largest personal luxury goods market share, around 24.00%. It includes high-end timepieces and fine jewelry, which is made from precious metals and gemstones. Companies are making significant investments to cater to the market growth of watches and jewelry. For instance, in 2023, Swarovski Created Diamonds launched its Galaxy collection in the US and Canada, which is an exquisite line inspired by cosmic phenomena and designed by Global Creative Director Giovanna Engelbert.

The beauty and fragrances market is experiencing the fastest growth rate of 6.50% in the global personal luxury goods market because of the lower price barrier, recurring purchase nature, and expanding demand among Gen Z. Furthermore, the handbags and accessories segment is witnessing moderated growth because of the increasing consumer demand for high-end fashion accessories and the expansion of digital retail channels.

The apparel segment growth is ascribed to the rising influence of social media and digital marketing, which has enhanced brand visibility and consumer engagement, making luxury apparel accessible and desirable. Many luxury brands integrated their online and offline channels to provide a seamless shopping experience, which allows customers to explore and purchase luxury fashion. For instance, in 2023, Ralph Lauren Corporation expanded its market in Canada by introducing a dedicated digital commerce platform and the inauguration of the first Ralph Lauren store in the country. Furthermore, the luxury footwear market is driven by the increasing adoption of sneakers with brands like Dior, Gucci, and Alexander McQueen. The market is growing at a CAGR of 1.75% during the forecast period.

The market for luxury eyewear is rising with the growing disposable income, along with surging cases of vision disorders and rising fashion consciousness. Companies are expanding their market by making strategic developments. Such as in 2023, Bulgari and Thelios, which are part of the LVMH Group, have done a partnership for creating, manufacturing, and distributing Bulgari eyewear worldwide, which further supports the market of luxury eyewear.

Segmentation by Product Type

• Watches & Jewelry
• Beauty & Fragrances
• Handbags & Accessories
• Apparels
• Footwear
• Eyewear

INSIGHTS BY PRICE RANGE

In 2024, the accessible luxury market accounted for the global personal luxury goods market share and is expected to grow at a CAGR of around 5.00% during the forecast period. The growth is ascribed to the rising adoption of entry-level luxury products across emerging markets. The demand for accessible luxury is growing because of the increasing adoption by millennials and Gen Z consumers, which focuses on personal expression, brand affiliation, and aesthetics. These accessible luxury goods allow these consumers to participate in luxury culture without straining their budget.

The premium segment market in APAC is witnessing a significant growth rate of around 5.00% during the forecast period, and North America is accounting for a revenue share of over 29% in 2024. The market is growing in the region because of the strong consumer spending, increasing brand awareness, and a robust e-commerce infrastructure. Furthermore, despite economic uncertainties, the number of UHNWIs continues to grow, fueling the demand for ultra-exclusive goods in markets like India, China, and the Middle East, and in 2024, the super luxury goods market is expected to account for an absolute growth rate of 15.23% during the forecast period.

Segmentation by Price Range

• Accessible Luxury
• Premium
• Super Luxury

INSIGHTS BY SALES CHANNEL

The offline sales channel is traditionally the backbone of the personal luxury goods market and has a crucial role in the global distribution landscape. The segment is expected to add revenue of around USD 51.00 billion by the end of 2030. Furthermore, the online segment includes third-party e-retailers, brand websites, and others. The rising preference for e-commerce of the online sales channel is gaining momentum and growing at a CAGR of over 8.00% during the forecast period. The segment is more effective as the online channel is not restricted local region. It provides wider options for brands to offer their products globally. For instance, Fenty Beauty and Nars are now offering their products across India with the help of the Nykaa app. Hence, such factors are expected to boost the online distribution channel.

Segmentation by Sales Channel

• Offline
• Online

INSIGHTS BY OFFLINE

In 2024, the mono-brand segment is dominating the offline personal luxury goods market. These are the preferred choices among end-users as they focus on strengthening the connection between the consumer and the brand's identity. Furthermore, retail stores include both departmental and specialty stores, which help brands to reach a wider customer base. The specialty stores focus on specific categories, whereas department stores offer multiple luxury and premium brands across varied product categories.

The outlets' segment is also gaining momentum in emerging markets like APAC and is expected to grow at a CAGR of 3.83% during the forecast period across the region. Moreover, the travel retail segment caters to international tourists and business travelers, taking advantage of the duty-free status or lower taxes on products offered in these environments.

Segmentation by Offline

• Mono-brand
• Retail Stores
• Outlets
• Travel Retail

INSIGHTS BY ONLINE

In 2024, the indirect online sales segment dominated the global personal luxury goods market because of its broader market reach, but with less control over branding and customer interaction. Furthermore, the direct sales channel is also gaining momentum across the online personal luxury goods market and is growing at a high CAGR rate of over 9.00% during the forecast period.

Segmentation by Online

• Indirect Sales
• Direct Sales

INSIGHTS BY END-USERS

In 2024, the women end-user segment has the largest market share and is expected to add around USD 89 billion by the end of 2030, as this consumer group in the global personal luxury goods market utilizes products such as jewelry, cosmetics, and handbags, among others as an essential part everyday fashion and special occasions. Furthermore, the men's end-user segment is witnessing a significant growth rate of 2.91% during the forecast period. The growth is attributed to growing interest in accessories, wallets, and watches, among others. Moreover, collaborations between luxury brands and influencers, athletes such as Louis Vuitton with Supreme or Dior with Travis Scott, have significantly surged the male consumers and brought luxury into the mainstream lifestyle.

Segmentation by End-users

• Women
• Men
• Children

PERSONAL LUXURY GOODS MARKET GEOGRAPHICAL ANALYSIS

The APAC region dominated the global personal luxury goods market, accounting for a share of over 38% in 2024. APAC is experiencing a surge in urbanization and rising disposable income, particularly in countries like China, India, and Southeast Asian countries. A growing middle and upper-middle class is driving demand for luxury goods as markers of status, success, and aspiration. As consumers become more brand-conscious, luxury ownership is increasingly viewed as a symbol of achievement. Furthermore, with the rising digital transformation in luxury retail, the region is experiencing steady growth. Livestream shopping, influencer-led marketing, and virtual brand experiences are reshaping the region's personal luxury goods market. This has made luxury more accessible and engaging to younger consumers.

The North American personal luxury goods market is highly competitive as it consists of several major vendors such as LVMH and Chanel, among others, which cater to customers worldwide. The robust cosmetic industry across the U.S. further supports the market growth. Furthermore, the European personal luxury goods market is growing at a growth rate of 2.53% during the forecast period owing to the presence large number of high-net-worth individuals. Germany, the UK, and France are the major contributors to the European market. The market increases on tourism with cities like Paris, Milan, and London, which are global shopping hubs. Tourists, especially from Asia and the Middle East, contribute significantly to luxury sales, seeking authentic European luxury experiences. Exclusive in-store collections, tax-free shopping, and iconic flagship boutiques further enhance Europe's appeal as a luxury destination.

The Latin American personal luxury goods market experiences a significant transformation with the growing adoption of digital technologies and the expansion of luxury brands across the region. Brazil and Mexico lead the regional market with substantial investments in e-commerce infrastructure and premium retail spaces. Furthermore, the Middle East & Africa is having emerging opportunities in the personal luxury goods industry because of the rapidly growing e-commerce industry and increasing disposable income. Major players are focusing on introducing new product offerings in the market to cater to the interests of consumers as per ongoing fashion trends among goods, like footwear, accessories, and luggage bags. For instance, in 2021, Rolex opened its store at the Galleria Al Maryah Island in Abu Dhabi, featuring a watch bar with a VIP room that proudly displays the extensive collection.

Segmentation by Geography

• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Indonesia
• North America
  • The U.S.
  • Canada
• Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Spain
  • Sweden
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Turkey

VENDOR LANDSCAPE

The global personal luxury goods market is fragmented and characterized by numerous manufacturers that hold modest market share. Key players, including LVH, Prada Group, Rolex, Kering, and Richemont, among others, have established dominance in the market by continuously innovating and expanding their product offerings. Major vendors are strategically implementing innovative technologies to maintain their market positions. For instance, in 2023, Burberry introduced its virtual store by partnering with Blankos Block Party, a gaming platform, and offering interactive product discovery.

The companies in the personal luxury goods industry are also focusing on several strategic partnerships with other providers to ensure continuous supply chains and manufacturing capabilities. For instance, in 2023, Kering completed a 30% acquisition of the Italian luxury fashion house Valentino. The partnership is between Valentino's parent company, Mayhoola, and it has also provided an option for Kering to acquire the remaining 70% by 2028.

The leaders in the personal luxury goods market are making significant R&D investments to enhance the availability and differentiation of their products. For instance, in 2024, Richemont acquired Vhernier, which is an Italian jewelry brand, to enhance its Jewelry Maisons division. Furthermore, companies are increasingly expanding their product range and strengthening their market positions through acquisitions and partnerships. For instance, in 2024, Lavie Luxe launched its new 18% fragrance concentration perfume line, featuring four Eau de Parfum fragrances named LUSH, LILY, LAGOON, and LOVE.

Recent Developments in the Personal Luxury Goods Market

• In 2025, Hermes launched the Rouge Hermes Silky Lipstick Shine, a luxurious lipstick inspired by the brand's iconic silk scarves.
• In 2025, Jil Sander launched its first luxury fragrance collection, the Olfactory Series 1, by collaborating with Coty.
• In 2024, Dolce & Gabbana ventured into pet luxury by introducing Fefe, which is a perfume designed specifically for dogs.
• In 2024, Louis Vuitton launched its Metaverse Bag, integrated with AR features, allowing users to interact with the digital version of the handbag via mobile applications.
• In 2023, Swarovski Created Diamonds launched its Galaxy collection across the U.S. and Canada, which is an exquisite line inspired by cosmic phenomena and designed by Global Creative Director Giovanna Engelbert.

Key Company Profiles

• LVMH
• Kering
• Richemont
• Hermes
• Rolex
• The Estee Lauder Companies Inc.
• Prada Group
• The Swatch Group Ltd
• Signet Jewelers
• Pandora

Other Prominent Company Profiles

• Cartier
• Harry Winston
• CAPRI HOLDINGS
• Armani Group
• L'Oreal Group
• Charlotte Tilbury
• Chow Tai Fook Jewellery Company Limited
• Swarovski
• Burberry
• Valentino
• Ralph Lauren Corporation
• Calvin Klein
• SK-II
• Lancome
• David Yurman
• Grown Brilliance
• ALEX AND ANI
• Alexis Bittar
• BaubleBar
• Ben-Amun
• Brilliant Earth
• Catbird
• Chanel
• Chan Luu
• Dorsey
• Fantasia by DeSerio
• Gorjana
• Graff
• Ippolita
• John Hardy

KEY QUESTIONS ANSWERED:

1. How big is the global personal luxury goods market?

2. What is the growth rate of the global personal luxury goods market?

3. What are the significant trends in the personal luxury goods industry?

4. Which region dominates the global personal luxury goods market share?

5. Who are the key players in the global personal luxury goods market?