Luxury Industry Sales Climb More Than 10% from 2019, Deloitte Study Finds

Sales in the global luxury market, according to the Fashion & Luxury Private Equity & Investors Survey 2024, conducted by Deloitte, have scored double-digit compound annual growth rates (Cagr) from 2019 to 2023. Products such as personal goods, furniture or yachts have driven this growth, which, however, has not been sustained in the last year and a half.

According to the report’s data, revenue in this segment has been increasing by 10.3% each year since 2019, along with a 12.2% rise in gross operating profit (ebitda). In 2023 alone, the consultancy estimates that the value of the luxury market, based on a panel of 114 companies analyzed, was $1.12 trillion, 37% of which corresponds to luxury personal goods.

By product type, the study highlights the evolution in recent years of sales of luxury personal goods, which between 2019 and 2023 have increased at a rate of 11.1%, above the 9.8% rise of the rest of the items in the sector. This trend is reversed in the last year analyzed, between 2022 and 2023, when the rise in sales of luxury goods was 9.6% year-on-year, compared to 12% for the rest.

Fashion and luxury consumption trends point to monobrand and online channels

Although Deloitte highlights the recovery of the sector after the pandemic, consumer uncertainty and weakness in discretionary spending persist, with China being the most worrying factor for 68% of investors, who see the Asian market as having a high negative impact on the sector.

Another trend highlighted by the consultancy is the number of M&A or mergers and acquisitions within the sector. The luxury sector in 2024 recorded 333 deals, 25 more than in 2023, including the acquisition of Versace by the Prada group, a transaction valued at 1.250 million and the purchase of Yoox Net-a-Porter by Mytheresa from Richemont in exchange for the acquisition of 33% of the German company’s capital.

Apparel and accessories was one of the sectors that grew the most during 2023 in terms of merger and acquisition activity, up 28%. On the other hand, cosmetics, fragrances and watches and jewelry were some of the sectors that declined the most during 2023, with 8% and 3%, respectively.

Consumer trends in the fashion and luxury sector are undergoing significant changes, evolving in aesthetics towards a silent luxury style. In terms of audiences, generations Y, Z and Alpha will be the protagonists in the coming years, representing 85% of global purchases by 2030. In terms of sales channels, it is estimated that single-brand stores and online channels will account for 60% and 66% of the market, respectively.

The study was conducted on a global scale, with 60 venture capital funds and more than 144 companies active in the fashion and accessories, watches and jewelry, cosmetics and perfumery, luxury automotive, private jets, cruise, furniture, yachts and high-end restaurants sectors.