The global luxury and premium goods market has begun to recover from a pandemic, according to research from Italian luxury manufacturers’ association FondazioneAltagamma and the U.S. consulting firm Bain & Company.
Since the beginning of 2021, the market is already recovering by 13-15% compared to 2020. It is predicted that the total turnover of the global market will amount to 1.1 trillion euros by the end of the year, which is only 10% less than in the pre-crisis year of 2019. In 2020, the market declined due to restrictions and decreased purchasing power was estimated at 23%.
The authors of the study point out that the main growth driver of the luxury goods market is jewelry, watches, handbags, designer clothing, accessories, and other personal products. Growth in this segment is 29% relative to 2020 and 1% close to 2019. Analysts expect the market to reach the €360-380 billion mark annually by 2025, with 6-8% annual growth.
Sales of designer furniture and home furnishings have grown by 14% YTD to 2020 and by 7% YTD to 2019. The collectible wine and luxury spirits segment saw sales growth of 13% and 1%, respectively.
In the category of private jets and yachts, the market has increased only 2% compared with 2020, while sales are still 7% behind their pre-crisis levels. The worst-case scenario is in the luxury travel segment, with sales down 41% per year and an 82% lag compared to 2019.
