Global Luxury Fashion Industry (2018–2028)
By market analysts’ projections, the global luxury market is expected to expand by 13.5% this year, generating $354.8 billion in total revenue. Of the different luxury products, fashion-related items are set to grow their revenues at the fastest rate.
In this article, we take a closer look at the luxury fashion market worldwide and its performance in recent years.
Global luxury fashion industry revenue: 2018–2023
A recent luxury fashion industry analysis shows that the sector is expected to grow by 14.7%, as sales total $111.5 billion. This makes fashion-related products the largest revenue-generating category in the luxury industry, with a market share of 31.4%. In other words, nearly $1 out of every $3 spent on luxury items this year will be on fashion.
The market growth expected this year is significant for three reasons. Not only does it make luxury fashion the fastest-growing category of all luxury products, it is also the biggest annual increase industry experts expect in at least a decade. Moreover, this marks the first time revenues from the luxury fashion industry will surpass the $100 billion milestone.
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2023’s increase is three times the growth rate of the previous year. In 2022, spending on luxury fashion items grew by 4.9%.
The luxury apparel market has mostly been growing since 2018. With the exception of 2020, when revenues tumbled 10.7%, the sector has expanded every year. In 2018, the market brought in $90.6 billion in revenues. This rose by 5.8% in 2019, to $95.8 billion.
The fall of 2020 saw revenues slide to $85.6 billion, but subsequent annual increases of 8.3% and 4.9% took the market back up to $92.7 billion and $97.2 billion in 2021 and 2022, respectively.
Global luxury fashion industry revenue: 2024–2028
Luxury fashion industry statistics show the sector will continue to expand over the next few years. In 2024, revenues are expected to rise by 3.9%, to $115.9 billion.
Further increases of 3.6% and 3.3% are forecast for 2025 and 2026, which will take total revenues to $120.1 billion and $124.1 billion, respectively. In 2027, growth is set to slow slightly, to 3%, as the luxury market hits $127.8 billion. By 2028, the industry is projected to be worth $131.7 billion, after a 3.1% annual increase.