The personal luxury-goods market experienced its first decline in 15 years, slipping 2% to EUR 363 billion ($377.47 billion), according to Bain & Company’s latest luxury study.
“Global luxury consumers, grappling with macroeconomic uncertainty and continued price elevation by brands, cut back slightly on discretionary items,” the management consultancy firm said this week.
Overall, global luxury spending fell 1% to 3% to EUR 1.48 trillion ($1.54 trillion) in 2024, signifying normalization following strong growth in 2022 and 2023 and surpassing pre-pandemic levels, Bain noted in the latest report, which it released in conjunction with Italian luxury-goods industry group Altagamma.
The market for jewelry stood out as the most resilient core luxury category, growing by 0% to 2% to EUR 31 billion ($32.35 billion) for the year. High jewelry performed especially well, while watches, leather goods and shoes slid as aspirational consumers “traded down toward the premium segment” and were “increasingly selective about purchases,” Bain observed.
Globally, the secondhand luxury market reached EUR 48 billion ($50.05 billion) in 2024, growing by 7% year on year at current exchange rates. Hard-luxury items — comprising jewelry and watches — dominated this market, accounting for 80% to 85% of secondhand sales. While jewelry saw particularly solid growth, apparel also experienced a notable uptick.
“Brands are taking greater steps to monitor and orchestrate this channel, with many implementing tighter oversight over resale programs or launching their own platforms,” Bain said.
China saw a sharp dive, with domestic sales down due to poor consumer confidence paired with Chinese tourists flocking to nearby regions such as Europe, where their spending grew 40% in the first 10 months of 2024, compared to the same period a year ago. The country saw a decrease of 20% to 22% versus 2023, as weak macroeconomics severely impacted domestic spending
Despite these figures, personal luxury goods are forecast to increase slightly in 2025, with an estimated increase of 0% to 4%, assuming there is sustained growth within the Western world, an eventual rebound in China during the second half of the year, and stabilization in Japan, Bain added.
Image: A jewelry display. (Shutterstock)
