Currently valued at $123.05 billion, the global luxury fashion market is estimated to reach $198.55 billion by 2031. According to a report by Straits Research, the market will grow at 5.46 per cent CAGR during the 2023–2031period.
Growth in the global luxury fashion market will be dominated by the Asia-Pacific region which is likely to grow by 6.79 per cent during the forecast period. Growth in this region will be driven by the escalating number of billionaires in it.
Escalating disposable income of the middle class will contributes to the region’s development of the luxury fashion market.
The second highest growth will be demonstrated by Europe which is estimated to grow at 3.65 per cent over the forecast period. Growth in this region will be driven by the presence of many luxury fashion firms in countries like France and Italy and high concentration of people with exceedingly high purchasing power in numerous European nations. The growth of the tourism sector will also boost demand for luxury fashion products across the region.
Largest revenue contributor to the market, the apparel segment is projected to grow at a CAGR of 4.55 per cent over the forecast period. Growth in this segment will be dominated by men’s fashion that is projected to at 4.41 per cent CAGR over the forecast period.
Owner of the largest market share, the Gen X segment is predicted to grow at 5.35 per cent over the forecast while in terms of distribution channels, the online segment will merge as the highest contributor with a CAGR of 7.38 per cent over the forecast period.
