Enjoy complimentary customisation on priority with our Enterprise License!
The personal luxury goods market is estimated to grow by USD 42.43 billion at a CAGR of 2.7% between 2022 and 2027. The growth of the market depends on several factors, including increased demand for premium beauty products and cosmetics, the influence of different marketing strategies on customers' purchase decisions, and the increasing demand for affordable luxury goods.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The increased demand for premium beauty products and cosmetics is notably driving market growth, although factors such as the presence of counterfeit products may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Market Driver
Premium beauty products and cosmetics drives the market growth. As disposable incomes increase, consumers spend more and more on high-quality cosmetics. Consumers are increasingly aware of skin concerns such as blemishes, acne, and pigmentation and are willing to pay for quality skin care products.
Cosmetics and skincare brands focus on differentiation from pharmaceutical companies. Therefore, they invest in innovative skincare products and techniques. Consumers, especially the aging population, are looking for skin care products that help maintain a youthful appearance. In the past, anti-aging creams were used to temporarily tighten the skin to reduce lines and wrinkles. However, technological advances have increased the number of high-quality, advanced anti-aging products. These products will boost the market growth during the forecast period.
Market Trend
Brand promotion through social media is an emerging trend in the market. An important role is provided by social media in increasing product awareness. Social media is a boon to any industry as it provides a platform to actively interact with consumers. Consumers use social networking sites and blogs to learn about personal products such as cosmetics, bags, shoes, and clothing. Hence sellers use these platforms to create awareness and promote their products.
Some of the main platforms including Facebook, Twitter, Instagram, and YouTube are used for promoting products. In recent years, the total sales volume and revenues of sellers have been positively affected by factors such as the growth of internet and smartphone penetration and the increasing customer engagement of goods sellers. These factors will drive market growth during the forecast period.
Market Challenge
The presence of counterfeit products is a major challenge impeding the market. The growing market prospects of personal products and their increasing demand simultaneously drive fake personal goods, especially in developing regions. Additionally, the spread of e-commerce has driven the sales of counterfeit products as it is difficult for customers to distinguish genuine products from fake products.
Counterfeit products are cheap and therefore in high demand. These products adversely affect the sales and pricing strategies of genuine sellers, reducing their market share and tarnishing their reputation. To overcome these challenges, global players are forced to reduce the prices of their products. However, advertising and sales promotion campaigns help retain and attract customers, ensure brand loyalty, and prevent switching to counterfeit products. However, these promotional activities incur huge expenses and further reduce the profit margins of sellers. Therefore, these factors will hinder the market growth during the forecast period.
Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Prada S.p.A - The key offerings of the company include electric massagers.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the offline segment will be significant during the forecast period. The revenue of the offline distribution channel comes from the sales of products through specialty stores, including brand-owned stores, multi-brand stores, apparel stores, fashion, and personal accessory stores, sports equipment stores, hypermarkets, supermarkets, convenience stores, clubhouse stores, and department stores.
Get a glance at the market contribution of various segments Request a PDF Sample
The offline segment was valued at USD 219.06 billion in 2017 and continued to grow until 2021. The huge growth in retail channels in different regions will drive customer familiarization with different types of footwear, purses, belts, and many other things. It will also increase the value of sales in the global market during the forecast period. companies focus on improving their offline sales by widening their operations in different locations. This helps them generate sales of products efficiently and to cater to every consumer category in large geographic areas. Although the offline segment is losing its market share to the online segment, innovative marketing strategies by companies will keep the growth rate of the offline segment stable during the forecast period. These factors will boost segment growth during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have explained the regional trends and drivers that shape the market during the forecast period.
The high per capita income and the rising disposable income of customers in Europe have resulted in an increased demand for personal goods in the region. Therefore, companies are offering personal luxury goods such as apparel, cosmetics, and hard goods on their web portals as well as through third-party online sellers. This will propel the growth of the online market in the region during the forecast period.
Furthermore, the rise in international inbound tourism in countries such as Italy, France, and the UK, as well as the increase in spending by tourists, is driving the market for personal goods such as luxury handbags. Besides, the market for personal luxury goods in the region has grown due to the high demand for designer apparel and leather footwear. The increasing spending on luxury products for men, such as leather footwear, is one of the trends in the market.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is driven by the demand from a wealthy population seeking high-quality and luxurious items. There is also a growing interest in sustainable products, including second-hand branded items, as consumers become more conscious of their environmental impact.
Within the market, there are specific segments for women and men, each with its own unique preferences and trends. For example, custom packable jackets are a popular choice among consumers looking for personalized and versatile outerwear options.
In the realm of premium products, discerning consumers seek quality, luxury, and exclusivity. Bernhard H epitomizes craftsmanship and sophistication, offering meticulously crafted items that exude elegance. QNET LTD caters to the elite with its range of premium lifestyle products, reflecting opulence and refinement. Mecanique Collection merges artistry with engineering, producing exquisite timepieces that captivate enthusiasts worldwide. NFC technology enhances the luxury experience, providing seamless connectivity and security in premium gadgets and accessories.
Cathy Hackl, a thought leader in augmented reality, revolutionizes the luxury sector with immersive experiences through her company, VerseLux. Coach and Coachtopia redefine luxury with their iconic designs and impeccable craftsmanship, appealing to both men and women segments. Oxfam International champions ethical luxury, promoting sustainability and social responsibility in premium goods. Vikki Jones curates exceptional experiences, bridging luxury brands with discerning clientele.
Junghans and CHRISTIE'S embody timeless elegance and heritage, offering exquisite timepieces and fine art that transcend generations. OMEGA and Burberry epitomize luxury and innovation, setting trends in haute horlogerie and fashion. Printemps provides an unparalleled shopping experience, showcasing luxury brands in an opulent setting. Tencent and Alibaba Group redefine luxury in the digital age, offering exclusive online platforms for premium goods and services. L'Oréal and The Estée Lauder Companies Inc elevate beauty to an art form, creating iconic skincare and makeup products. Compagnie Financière Richemont SA and Chow Tai Fook Jewellery Group Limited are synonymous with luxury in the realms of high-end watches and exquisite jewelry. Luxottica Group SpA and Ralph Lauren Corporation epitomize sophistication and style, offering eyewear and fashion that embody timeless elegance. Shiseido Company, Limited sets the standard for luxury skincare, combining science with Japanese aesthetics. Hey Harper curates luxury experiences, offering bespoke services tailored to individual preferences.
Titled ICONS presents a curated selection of luxury goods, showcasing the epitome of refinement and exclusivity. GILDED THORNS Ear Cuff, PETALS SPIRAL Bracelet, and CRYSTAL BLOOM Ring exemplify luxury craftsmanship and design, adorning discerning individuals with unparalleled elegance. OC Oerlikon and Coeurdor innovate in the luxury sector, pushing boundaries with cutting-edge technology and materials. Farfetch revolutionizes luxury retail, providing access to coveted designer pieces from around the world. Tiffany & Co. epitomizes timeless elegance and sophistication, offering iconic jewelry pieces that transcend trends and generations. In the realm of premium products, these brands redefine luxury, elevating the art of living to new heights.
Personal Luxury Goods Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.7% |
Market growth 2023-2027 |
USD 42.43 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
1.7 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 35% |
Key countries |
US, China, Germany, France, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Capri Holdings Ltd., Chow Tai Fook Jewellery Group Ltd., Compagnie Financiere Richemont SA, Coty Inc., Giorgio Armani S.p.A., Hermes International SA, Kering SA, LOreal SA, LVMH Moet Hennessy Louis Vuitton SE, Prada S.p.A, PVH Corp., Ralph Lauren Corp., Rolex SA, Safilo Group Spa, Shiseido Co. Ltd., Swarovski AG, Tapestry Inc., The Estee Lauder Co. Inc., The Level Group S.r.l., and The Swatch Group Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.