The luxury market: a look at 2024
The global luxury market is preparing to reach a turnover of around 1,500 billion euros in 2024, maintaining stability compared to the previous year. According to the Altagamma 2024 Observatory, the expected annual growth rate is between -1% and 1%, reflecting an uncertain economic environment and an increase in prices that is affecting consumers’
buying habits.
The challenges of Generation Z
A worrying aspect is the decline in interest in luxury brands on the part of Generation Z. This group of consumers, increasingly attentive to values and sustainability, is reducing purchases of luxury goods. However, forecasts for 2025 indicate a possible recovery, with an estimated growth of 3% for ‘personal luxury goods’.
The growing product categories
Despite the difficulties, some product categories continue to show signs of growth. The beauty, jewelry and eyewear sectors are among the most promising, with demand that remains robust. Consumer polarization is evident, with 1% of HNWIs (High Net Worth Individuals) continuing to invest in luxury, while other consumer groups see a decline in purchasing power
.
The role of outlets and the online channel
In this scenario, outlets are emerging as the main access point to the luxury market, thanks to the growing demand for value-added purchases. At the same time, the online channel, while normalizing after the post-pandemic fluctuations, remains crucial for brands that offer immersive and personalized experiences. This approach not only improves online engagement, but it also stimulates sales in physical stores.
Prospects for the global market
Looking to the future, Europe should record a growth of 2%, supported by tourist flows, in particular by American arrivals. The North American market is confirmed to be strategic, with a growth forecast of 3.5%, while in Latin America an expansion of 4% is expected. However, Japan could stabilize with 2% growth, influenced by a weakening of the
yen.
Conclusions on product categories
Forecasts for the different product categories show moderate growth for leather goods and footwear, while clothing is expected to register an increase of 3%. Cosmetics, in particular, stands out with an estimated expansion of 6%, driven by Korea. Jewelry continues to grow by 4.5%, while watch purchases are expected to increase by 1%. Physical retail remains the preferred channel, with an expected growth of 5%, supported by digital integration
.