Market size of the global personal luxury goods market 2009-2020, by market segment

Luxury goods industry was one of the hardest-hit by the coronavirus (COVID-19) pandemic. In 2020, the value of the personal luxury goods industry declined by about 23 percent on the previous year. Luxury apparel saw the biggest drop in market value, as many retail locations had to shut down amidst coronavirus lockdowns and retailers had to halt or reduce orders.

Impact of COVID-19 on luxury goods

According to analyses, the negative impact caused by the pandemic and the ensuing economic downturn was as high as a 25 percent drop in the luxury goods industry. Specifically, the pandemic triggered the most drastic decline in the luxury watches and jewelry segment. Despite seeing a decline compared with 2019, the luxury cosmetics and fragrances segment performed better within the personal luxury goods industry. That said, the industry is expected to pick up over the next five years. Between 2020 and 2025, all segments of the industry are forecast to grow, with a CAGR varying between 5 to 6 percent.

Who are leading the luxury game?

The luxury goods industry is characterized by high levels of competition where growth through acquiring and merging with other brands and houses is standard. In 2019, based on worldwide sales, the French conglomorate LVMH, was the leading global luxury brand. With sales amounting to 37.5 million U.S. dollars that year, LVMH is the parent company to a number of high value brands, such as Louis Vuitton, Christian Dior, and Tiffany and Co. among others.