The global luxury goods market is in fine shape despite turbulent economic and consumer market conditions, according to a new study from Bain & Co. and Altagamma, the Italian luxury goods manufacturers’ industry association.
This year, the luxury market produced positive growth for 95% of brands and is projected to grow by 21% to some $1.5 trillion.
Even with a possible global recession in 2023, the Bain and Altagamma analysis forecasts further expansion in sales and market value for luxury goods through the coming year and decade.
The analysis found that millennials and Generation Z accounted for the entire growth of the market in 2022. In coming years, the younger generations’ spending is set to grow as much as three times faster than that of other generations until 2030, making up a third of the market.
Bain and Altagamma said this is driven in part by a more precocious attitude toward luxury, with Gen Zers starting to buy luxury items three to five years earlier than millennials — at age 15, versus at ages 18 to 20. Generation Alpha, their successors, are expected to behave in a similar way.
That brings us to the holiday gift-giving season. See the gallery for 12 luxury items your wealthy clients may consider for their nearest and dearest.