Global luxury sales set to hit record this year, study says

MILAN >> Luxury spending is growing faster than ever, fueled by pent-up pandemic demand and shifting demographics as younger, more diverse consumers buy into tiny handbag and post-streetwear trends, according to a study released Tuesday.

Global sales of personal luxury goods including leather accessories, apparel, footwear, jewelry and watches are expected to grow by 22% this year, to 353 billion euros ($367 billion) from 290 billion euros in 2021, according to the Bain consultancy study commissioned by Italy’s Altagamma association of high-end producers.

“Consumption is back at pre-crisis levels, but it is also a rebirth, since there is a new consumer base that is younger, and some pockets of consumers that have been unlocked during COVID are here to stay and growing, like subcultures and ethnic groups in the U.S.,” said Bain partner Claudia D’Arpizio, a study coauthor.

The record growth comes after the sharp 2021 recovery from the global pandemic lockdowns, creating a strong trajectory despite the specter of recession next year blamed on higher raw material and energy prices. Bain predicts the sector will expand to between 550 billion euros and 570 billion euros in the next five years.

D’Arpizio cautioned that the sector is not recession-proof but is more resilient than it was in the 2008-2009 financial crisis, when luxury sales tanked.