The global luxury market showcased stability in the face of geopolitical and economic turbulence in 2023, exceeding a record €1.5 trillion. By Leatherbiz.

Behind this growth was a resurgence of luxury travel and a robust US holiday season in the fourth quarter, according to research by consultancy Bain in association with Italian luxury goods association Altagamma.

The research showed a growth in hospitality as well as gourmet food and fine dining. Additionally, the market has seen consistent growth in private jets and yachts. This comes alongside a slowdown in the auction market for fine arts, due to artwork shortages and economic uncertainties.

The personal luxury goods market saw a slight decline in the first quarter of 2024. Key to maintaining stable growth across subsectors will be luxury brands’ ability to address rising prices while maintaining a robust price-value equation in the eyes of consumers, said Bain.

China’s market is under pressure due to two primary factors: the revival of outbound tourism and weakening local demand caused by rising economic uncertainties. The latter is undermining middle-class consumer confidence, leading to “luxury shame” behaviour. The US continues to face with macroeconomic pressures despite signs of gradual improvement in GDP and consumer confidence.

Federica Levato, leader of the firm’s EMEA Luxury Goods and Fashion practice, said: “A dual strategy, framed around the allure of top-tier clientele and the appeal of smaller luxury indulgences, is driving growth at both ends of the price spectrum.

“But now is not the time to for brands to rest on their laurels. As brands continue to face turbulence in the market, the winners will be those that rethink the way they craft and deliver their value propositions across multiple price points and touchpoints, growing their reach while building advocacy and loyalty among their customers.”