The global luxury goods market took a leap forward in 2022, despite uncertain market conditions. The industry is poised to see further expansion next year and for the rest of the decade to 2030, even in the face of economic turbulence. These are key findings from the 21st edition of the Bain & Company- Altagamma Luxury Study, a collaboration between Bain & Company and Fondazione Altagamma, the trade association of Italian luxury goods manufacturers.
The overall luxury industry tracked by Bain & Company encompasses both luxury goods and experiences. It comprises nine segments, led by luxury cars, luxury hospitality, and personal luxury goods, which together account for more than 80% of the total market. After a severe contraction in 2020 due to the Covid-19 pandemic, the market grew back to €1.15 trillion in 2021 and surprised everyone in 2022 by further growing 19%–21%, according to our estimates.
Luxury spending continued to skew toward products, with steep growth in personal luxury goods and more moderate growth in experience-based goods. Spending on experiences will be the last luxury outlay to recover historical highs given its reliance on the resumption of international tourism and business travel.