LUXONOMY Report: Luxury Market Forecasts for 2025

The luxury market continues to show dynamism and significant growth globally. This report details key forecasts and trends for the luxury sector through 2025, highlighting important economic figures, specific segment analysis, and data visualizations to facilitate understanding of the projections.

Global Luxury Market Growth

Market Value

• In 2018, the global luxury market was valued at €920 billion.
• In 2023, it reached an estimated value of €1.5 trillion, marking notable growth driven by post-pandemic economic recovery and increased luxury spending.
• The global luxury market is projected to reach €1.8 trillion in 2025 and €2.1 trillion in 2028, maintaining a compound annual growth rate (CAGR) of approximately 6-8%.

Key Segments

Luxury Fashion and Apparel

• The luxury fashion market was valued at $170 billion in 2018 and grew to $201.6 billion in 2023.
• The luxury fashion market is expected to grow at a compound annual rate of over 5%, reaching $238 billion in 2025 and $285 billion in 2028.
• The Asia-Pacific region continues to be the largest and fastest-growing market, driving a significant portion of global growth.

Luxury Jewelry and Watches

• Online fine jewelry sales increased from 13% of the total market in 2018 to 18% in 2023 and are expected to reach 21% in 2025.
• The luxury watch market, although growing at a slower rate of 1% to 3% annually, is experiencing significant restructuring with a shift towards direct-to-consumer (DTC) business models.

Emerging Trends

Digitalization and Online Sales

Digitalization is transforming the luxury market. Online sales are expected to become the leading channel for luxury purchases by 2025, with a growing proportion of the jewelry and fashion market moving online. Brands are investing significantly in enhancing the online customer experience to replicate the personalized attention and high-quality service offered in physical stores.

Sustainability

Sustainability is emerging as a crucial factor for purchasing decisions, especially among younger consumers. Sustainable practices will influence 20-30% of global jewelry sales by 2025. Brands are adopting more transparent and responsible practices in their supply chains to gain consumer trust and lead in sustainability.

Second-hand Market

The second-hand luxury watch and jewelry market is growing rapidly, with projections to reach between $29 and $32 billion in sales by 2025. This growth is driven by cost-conscious young consumers and collectors.

Data Visualizations

The luxury market is on a robust growth trajectory, driven by digitalization, sustainability, and expansion into emerging markets. Brands that adopt innovative and sustainable strategies, as well as direct-to-consumer approaches, will be better positioned to capitalize on the opportunities in this rapidly developing sector.

Full Report:

The luxury market has shown remarkable resilience and growth over the years, even in the face of global economic challenges. This report offers a detailed analysis of luxury market forecasts for 2025, addressing key economic figures, emerging trends, and data visualizations to facilitate a deep understanding of the projections. It explores major market segments such as fashion and accessories, jewelry, and watches, and discusses the most influential trends like digitalization and sustainability.