Tugba Sabanoglu
Research lead covering Non-food CG & Retail
Global personal luxury goods industry - statistics & facts
Personal luxury goods is the second-largest segment of the luxury industry after luxury cars. Encompassing luxury apparel, accessories, watches, jewelry and eyewear, the revenue of the personal luxury goods market has increased at a steady pace over the past decade, apart from the hiccup caused by the coronavirus (COVID-19) pandemic. The United States is projected to be the market leader in personal luxury goods with a revenue of about 83.3 billion U.S. dollars, followed by China. By 2028, the United States is expected to retain its position as the leading country where the personal luxury goods market generates the highest revenue worldwide. Parallel to this, American nationals make up the leading consumer group when it comes to luxury goods consumption.
Prompted by the need to adopt more sustainable production and consumption measures in recent years, resale has also emerged as a profitable and viable option for luxury, although ownership and authenticity play a vital role for luxury consumers. In 2021, the secondhand luxury market was estimated to be worth 33 billion euros worldwide.
Market leaders and product categories
Within the personal luxury goods industry, fashion and apparel products account for the largest revenue share. By 2028, the luxury fashion segment, which includes apparel and footwear, is projected to yield over 130 billion U.S. dollars in revenue. That said, for the behemoths of the personal luxury goods industry, diverse luxury products beyond apparel drive sales. While for LVMH, fashion and leather goods have the largest revenue share, for Richemont, jewelry sales make up more than 40 percent of the company’s annual revenue, for instance. Similarly, sales from leather goods contributed to half of the Kering Group’s most recently reported revenue. Some of the brands under the Kering Group banner include Gucci, Bottega Veneta, Balenciaga, and Saint Laurent.Luxury sales channels: online on the rise
Traditionally, personalization, clienteling, and in-store retail experience have been some of the key elements that differentiate luxury from mainstream retail. While this still holds true as physical channels constitute the largest share of the market value, alternative sales channels and business models for luxury are taking off. In 2022, the value of the online personal luxury goods market was estimated to be worth 75 billion euros. This forward trend is fueled by many of the incumbent names of the luxury industry venturing into online sales channels. Over the past three years, online sales of The Kering Group grew from seven percent to 15 percent, for instance. Online distributors of the Richemont Group, which includes Watchfinder and the popular online marketplace for luxury goods Yoox Net-a-Porter, delivered almost 2.8 billion euros in 2022.Prompted by the need to adopt more sustainable production and consumption measures in recent years, resale has also emerged as a profitable and viable option for luxury, although ownership and authenticity play a vital role for luxury consumers. In 2021, the secondhand luxury market was estimated to be worth 33 billion euros worldwide.
