The global market for personal luxury goods is projected to experience a slight decline of 2 percent, landing at approximately $381.74 billion in 2024, according to the recent Luxury Study by Bain & Company. This analysis highlights ongoing strength in markets such as Japan and southern Europe, alongside a steady rebound in the United States. Conversely, challenges are significant in China, where a rapid economic slowdown is evident, and South Korea continues to face difficulties.
The findings, part of the 23rd iteration of Bain’s Luxury Study, conducted in collaboration with Fondazione Altagamma, underline a mixed landscape. While beauty and eyewear categories show the strongest growth, traditional luxury segments like shoes and watches are struggling. Jewelry, however, remains resilient amid these market shifts.
Emerging from 2024, Bain estimates that just about a third of luxury brands will carry forward with positive growth, a stark contrast to the two-thirds reported in the previous year. With many brands bracing for revenue drops, there is growing pressure on profitability, prompting a renewed emphasis on enhancing performance and leveraging technology moving into next year.
Despite the current challenges, Bain remains optimistic about long-term market prospects, forecasting future growth driven by increasing wealth and a burgeoning luxury consumer base. To capitalize on these opportunities, luxury brands will need to clarify their strategic focus and optimize execution.
