Luxury recovers in a V shape: it grew by 29% in 2021 | Fortune

The personal luxury goods industry has seen a V-shaped recovery in 2021. After a sharp contraction in 2020, the luxury personal goods market grew by 29% at the current exchange rate to reach € 283 billion, which which means an increase in the size of the market by 1% compared to 2019.

These are some of the data that emerge from Bain & Company’s 20th study of the luxury industry, presented this Thursday in Milan, in collaboration with Fondazione Altagamma. The report estimates that the market for personal luxury goods could reach between 360 and 380 billion euros in 2025 with a sustained growth of between 6 and 8% per year.

The overall luxury market, which encompasses both luxury goods and experiences, is still below 2019 levels, reaching approximately € 1.1 trillion.

The revitalized luxury market has been driven by the resumption of local consumption, the traction of China and the US and the strength of the online channel. America is now the world’s largest luxury market, with 89,000 million euros and 31% of the global market, while China currently represents 60,000 million, 21%. The Middle East is another of the regions to highlight, with Dubai and Saudi Arabia leading the growth of the area.

Younger customers (Millennials and Gen Z) continue to drive growth and together will account for 70% of the market by 2025. Market changes have accelerated and luxury brands are transforming from mere product manufacturers to firms. with the purpose of contributing to achieve a more sustainable, diverse and egalitarian society.

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Second-hand goods reached 33,000 million in 2021. To put it in perspective, the second-hand market has grown 65% between 2017 and 2021, compared to the 12% growth that occurred during the same period in first-class luxury hand.

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