Bain-Altagamma Release the 2019 Worldwide Luxury Monitor
In November 2019, Bain & Company, in collaboration with the Italian luxury brand association Fondazione Altagamma, released the 18th edition of its highly regarded Worldwide Luxury Market Monitor. As in the past years, the report’s authors are Milan-based partners Claudio D’Arpizio and Federica Levato.
Global Luxury Market
In 2019, the global luxury markets reached about €1.3 trillion (~$1.4 trillion). This represents an increase of 8% year-over-year at variable exchange rates or +4% at constant exchange rates. Luxury cars represent the single largest category (43%), followed by personal luxury goods (22% or €281 billion).
The biggest growth 2018–2019 was experienced by luxury cruises (+9%), luxury cars (+7%), and gourmet food and dining (+6%). The largest declines were in fine art (-18%) and luxury hospitality (+2%). All percentages cited are at constant exchange rates. Sales of personal luxury goods have continued to grow at their long-term CAGR of 6%.
Within luxury goods, jewelry and shoes were the best-performing categories—both grew at 9%. Leather goods grew at 7%, Beauty by 3%, and watches were the poorest performers. Their sales declined by 2%. All percentages cited were at constant exchange rates.
Other Notable Findings
- Online sales are continuing to gain share and are now responsible for 12% of all luxury goods sales, up from 6% in 2015. Bain & Company believes that the global footprint of physical stores could reach its peak in 2020.
- Millennial customers (born between 1980 and 1995) accounted for 35% of consumption in 2019 and are expected to account for 45% by 2025. However, Generation Z (customers born 1995 to 2010) is likely to have an even more significant impact on the industry. By the year 2035, they are poised to make up 40% of buyers, and since their behaviors are quite different from other generations, they will have a significant impact on the industry. According to Bain, Gen Z customers want to connect emotionally with brands and enjoy physical interactions through stores.
- Social responsibility is important to luxury customers. According to the report, 80% of luxury customers express that they prefer socially responsible brands.
- The Second-hand market reached €26 billion in 2019. The luxury customer base is estimated to be 390 million in 2019 and is expected to grow to 450 million by 2025 (a 2.4% CAGR) due to the growing middle class, especially in Asia.
Please follow the link below to download the report.