Tourism Recovery to Boost Global Luxury Spending – Bain

The personal luxury goods market will grow 4% to EUR 362 billion ($396.47 billion) this year amid a rebound in travel, Bain & Company estimated.

“Global luxury tourist purchases have nearly reached pre-pandemic levels, with untapped potential remaining in many areas,” the management consultancy firm said earlier this month.

In total, the global luxury market will grow 8% to 10% to EUR 1.5 trillion ($1.64 trillion) for the year, setting a new record for the industry, Bain projected.

The jewelry market’s value will reach EUR 30 billion ($32.86 billion) in 2023, “with fine jewelry affirming itself as a bright spot for investments amid uncertainty,” Bain said in the report, which it released in conjunction with Italian luxury goods industry group Altagamma.

However, several factors could derail luxury growth in the fourth quarter, including weak consumer confidence, macroeconomic tensions in China, and a slow rebound in the US. Bain expects a softening in the performance of personal luxury goods in 2024, leading to low- to mid-single-digit growth compared with 2023.

Mainland China will become a strong force in the luxury goods industry by 2030, Bain said. Chinese customers will account for 35% to 40% of the personal luxury goods market by then, while Europeans and Americans will together represent 40%, it predicted. Additionally, over the next seven years, online and mono-brand channels will account for two-thirds of the entire market, Bain added.

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Main image: Jewelry in a box. (Shutterstock)