New study
1.5 trillion euros in spending in the luxury market in 2024
Spending in the luxury industry this year is at a similar level to last year. However, demand is shifting more strongly in a different direction.
Spending in the international luxury market is stagnating. Revenue is expected to be similar to the previous year’s level at almost 1.5 trillion euros, according to a study by the consulting firm Bain & Company and the Italian luxury goods association Fondazione Altagamma. Last year, despite all the crises, there was significant growth. In the area of personal luxury goods, however, there are signs of a slight decline of 2 percent to 363 billion euros.
According to the study, global luxury customers are reducing their spending due to economic uncertainty and ongoing price increases by brands. This trend is particularly noticeable among Generation Z, who show less interest in luxury brands. The bottom line is that the luxury customer base has shrunk, but existing customers are consuming even more.
Instead of classic products such as fashion and watches, “luxury experiences” are now particularly in demand, it was said. These include, among other things, expensive trips, events and wellness. Demand from the super-rich is also high for yachts and private aircraft. According to the study, luxury goods for personal use are shifting to “small purchases”, such as beauty products, perfumes and jewelry.
dpa
Source: Stern
