Personal luxury goods market to reach $378B by 2025: Bain

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The personal luxury goods market is exhibiting an impressive rebound, according to new data from Bain & Company.

With fuel from a successful 2021 holiday shopping season, the personal luxury goods market has now reached 288 billion euros in value, or $303 billion at the current exchange rate. Several factors have led to the recovery, including a European recovery, diversity and inclusion efforts and hopes for continued spending in China.

The market recovery reflects several global efforts, one being Europe’s growing local demand and consumer eagerness to return to shopping in a post-pandemic landscape. South Korea is also credited with aiding the market recovery as the country is also continuing to respond to growing local demand. The opposing trajectory entails a reduced growth pace due to a slower recovery in Mainland China, with the market reaching 305-320 billion euros, or $321-336 billion at the current exchange rate with a 5-10 percent increase from 2021.To fuel the continued market recovery, brands must continue contemplating their technology strategies and plans for the future. As Bain reports, by the end of 2030, digital assets and the metaverse will comprise 5-10 percent of the luxury market.

Brands must also approach their sustainability practices with genuine thoughtfulness, as consumers increasingly look for sensible products and policies that preserve the environment.

 

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