Global Personal Luxury Goods Market Size By Product Type (Watches And Jewelry, Perfumes And Cosmetics), By Sales Channel (Online, Offline), By End-User (Men, Women), By Geographic Scope And Forecast

Personal Luxury Goods Market Size And Forecast

Personal Luxury Goods Market size was valued at USD 101.05 Billion in 2024 and is projected to reach USD 146.07 Billion by 2031 , growing at a CAGR of 5.2% from 2024 to 2031. Personal luxury goods refer to high-end consumer products that convey exclusivity, quality, and status. This category encompasses a wide range of items, including designer clothing, luxury handbags, fine jewelry, watches, and premium cosmetics, typically characterized by their superior craftsmanship and branding. Personal luxury goods are primarily marketed to affluent consumers who seek unique and prestigious items that reflect their lifestyle and social status. These products are often associated with personal expression and identity, making them popular in various markets, including fashion, beauty, and accessories, as consumers prioritize quality and brand heritage.

Global Personal Luxury Goods Market Dynamics

The key market dynamics that are shaping the global personal luxury goods market include:

Key Market Drivers

Rising Disposable Income:

Increasing disposable incomes in emerging markets are driving demand for personal luxury goods. Affluent consumers are more willing to spend on high-end products, contributing to market growth. India's per capita net national income at current prices was estimated at 1,72,000 INR (approximately $2,300) for 2022-23, showing a growth of 15.8% over the previous year, according to the Ministry of Statistics and Programme Implementation.

Changing Consumer Preferences:

Modern consumers are seeking unique and personalized luxury experiences, leading brands to innovate their offerings. This shift in preference towards exclusivity and craftsmanship fuels the luxury goods market. A 2023 survey by Bain & Company found that 70% of luxury consumers prefer brands that offer personalized products and experiences, up from 45% in 2018.

Growth of E-commerce:

The expansion of e-commerce platforms is making luxury goods more accessible to a broader audience. Online shopping allows consumers to explore high-end brands and products from the comfort of their homes, boosting sales. Online luxury sales accounted for 22% of total luxury sales in 2023, up from 12% in 2019, according to Bain & Company's Luxury Goods Worldwide Market Study.

Influence of Social Media:

Social media platforms play a significant role in shaping consumer perceptions of luxury brands. Influencer marketing and visually driven content help create aspirational lifestyles, increasing interest in personal luxury goods. A report by Influencer Marketing Hub in 2023 found that 92% of luxury brands use influencer marketing, with an average ROI of $5.78 for every dollar spent.

Increased Travel and Tourism:

The growth of international travel and tourism contributes to the luxury goods market as travelers often seek to purchase high-end products. Luxury shopping destinations attract tourists, further driving sales in this sector. The World Travel & Tourism Council projected that global travel and tourism would contribute USD 5 Trillion to the global economy in 2023, recovering to 95% of pre-pandemic levels.

Key Challenges:

Counterfeit Products:

The prevalence of counterfeit luxury goods poses a significant challenge to the market. Counterfeiting undermines brand integrity and can deter consumers from investing in authentic luxury items.

Changing Consumer Values:

A growing emphasis on sustainability and ethical consumption is shifting consumer priorities. Luxury brands that fail to adapt to these values may struggle to attract eco-conscious buyers.

Intense Competition:

The personal luxury goods market is highly competitive, with numerous brands vying for consumer attention. This intense competition can lead to price wars and dilute brand prestige, impacting profitability.

Shift in Spending Habits:

Younger consumers, particularly millennials and Gen Z, are prioritizing experiences over material possessions. This shift in spending habits may lead to decreased demand for traditional luxury goods, challenging brands to innovate.

Key Trends

Focus on Sustainability:

Sustainability is becoming a significant trend in the personal luxury goods market, as consumers increasingly prioritize ethical practices. Brands are adopting eco-friendly materials and transparent supply chains to appeal to environmentally conscious buyers.

Rise of Digital Engagement:

The integration of digital technology is transforming how luxury brands engage with consumers. Online platforms, augmented reality, and social media marketing are enhancing the shopping experience and attracting a younger demographic.

Personalization and Customization:

Consumers are seeking personalized and customized luxury products that reflect their individual identities. Brands are responding by offering bespoke services and tailored experiences, fostering deeper connections with their clientele.

What's inside a VMR industry report?

Our reports include actionable data and forward-looking analysis that help you craft pitches, create business plans, build presentations and write proposals.

Global Personal Luxury Goods Market Regional Analysis

Here is a more detailed regional analysis of the global personal luxury goods market:

Asia Pacific

The Asia Pacific region is the dominant force in the personal luxury goods market due to the rapid economic growth, increasing disposable incomes, and a burgeoning middle class with a strong appetite for luxury brands. China, in particular, has become a powerhouse in luxury consumption, with its affluent consumers driving significant market growth.

According to the National Bureau of Statistics of China, the country's per capita disposable income reached 35,128 yuan (approximately $5,428) in 2021, a 9.1% increase from the previous year, fueling luxury purchases. Recently, LVMH reported a 34% increase in revenue in Asia (excluding Japan) for the first half of 2023, underscoring the region's pivotal role in the luxury goods market.

The rise of digital platforms and e-commerce in Asia Pacific has revolutionized the way luxury goods are marketed and sold, contributing to the region's market dominance. Countries like South Korea and Japan are at the forefront of digital innovation, influencing luxury retail strategies across the region.

The Japan External Trade Organization (JETRO) reported that the country's e-commerce market for fashion and luxury goods grew by 9.5% in 2022, reaching 2.1 trillion yen (approximately USD 7 Billion). In a significant move, Gucci recently launched its first-ever virtual world, "Gucci Town," on the Roblox platform, targeting young, tech-savvy Asian consumers and blending digital experiences with luxury brand engagement.

North America

North America's personal luxury goods market is experiencing significant growth, driven by a rising consumer base with increasing disposable income. According to the U.S. Bureau of Economic Analysis, personal income in the United States rose by 2.1% in July 2023, indicating more spending power among consumers. Major players like LVMH reported a strong performance in the region, with their Q2 2023 results highlighting a 25% increase in sales, reflecting a robust demand for luxury goods.

The shift towards online shopping has also propelled the personal luxury goods market in North America. A report by the National Retail Federation noted that e-commerce sales in the U.S. increased by 12% in 2022, showcasing consumers' preference for digital platforms. Brands such as Gucci have adapted by enhancing their online presence, launching exclusive digital collections that cater to tech-savvy luxury shoppers, contributing to their impressive sales growth.

Global Personal Luxury Goods Market: Segmentation Analysis

The Global Personal Luxury Goods Market is Segmented on the basis of Product Type, Sales Channel, End-User, and Geography.

Personal Luxury Goods Market, By Product Type

• Watches & Jewelry
• Perfumes & Cosmetics
• Clothing

Based on Product Type, the Personal Luxury Goods Market is bifurcated into Watches & Jewelry, Perfumes & Cosmetics, and Clothing. In the personal luxury goods market, the watches and jewelry segment currently dominates, driven by a strong heritage of craftsmanship and significant consumer investment in luxury timepieces and fine jewelry. However, the perfumes and cosmetics segment is rapidly growing, propelled by increasing consumer interest in high-end beauty products and the rising trend of luxury self-care. This growth reflects a broader shift towards personal expression and self-indulgence, as consumers increasingly seek to enhance their beauty routines with premium offerings.

Personal Luxury Goods Market, By Sales Channel

• Online
• Offline

Based on Sales Channel, the Personal Luxury Goods Market is bifurcated into Online & Offline. In the personal luxury goods market, the offline segment currently dominates, as traditional retail stores provide customers with a tactile shopping experience and personalized service, which are highly valued in the luxury sector. However, the online segment is rapidly growing, driven by the increasing shift towards e-commerce, improved digital marketing strategies, and the convenience of online shopping. This trend reflects changing consumer behaviors, particularly among younger shoppers, who prioritize accessibility and the ability to browse a wider range of luxury products from the comfort of their homes.

Personal Luxury Goods Market, By End-User

• Men
• Women

Based on End-User, the Personal Luxury Goods Market is bifurcated into Men and Women. In the personal luxury goods market, the women segment currently dominates, driven by a strong demand for high-end fashion, accessories, and beauty products. However, the men segment is rapidly growing, fueled by increasing awareness of personal grooming and fashion among male consumers, as well as a broader acceptance of luxury items in men's wardrobes. This trend highlights a shift towards greater inclusivity in luxury markets, as brands expand their offerings to cater to the evolving tastes and preferences of male shoppers.

Personal Luxury Goods Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Global Personal Luxury Goods Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. In the personal luxury goods market, Europe currently dominates, benefiting from its rich heritage in fashion and luxury brands, along with strong consumer demand from both local and international shoppers. However, the Asia Pacific region is the rapidly growing segment, driven by rising disposable incomes, a burgeoning middle class, and increasing interest in luxury products among younger consumers. This growth reflects a significant shift in global luxury consumption patterns, as brands expand their presence in this dynamic and high-potential market.

Key Players

• The "Global Personal Luxury Goods Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are
• Rolex SA, Kering SA, LOreal Group, PRADA Group, Coty, Inc., Ralph Lauren Corp, Shiseido Company, Luxottica Group, Swatch Group, and Hermes International.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Global Personal Luxury Goods Market Key Developments

• In October 2023, LVMH announced the opening of a flagship store in Tokyo, featuring exclusive collections and immersive brand experiences to enhance customer engagement in the personal luxury segment.
• In September 2023, Gucci launched a sustainable luxury line, focusing on eco-friendly materials and practices, aiming to attract environmentally conscious consumers in the personal luxury goods market.