Total retail sales worldwide are forecast to increase by 5.5% this year, to $29.7 billion, with fashion leading the list of the top online shopping categories. These numbers are encouraging for aspiring entrepreneurs looking to start a fashion business. But if you want to launch a business in the subcategory of luxury goods, you’ll need more pertinent figures to guide your strategy.

To that end, here’s a breakdown of the global luxury market size in recent years.

Start selling online now with Shopify

Start your free trial

Global luxury industry sales: 2018–2023

According to a recent analysis, the global luxury goods market is expected to generate $354.8 billion in revenue in 2023. This includes revenue from sales of luxury eyewear, leather goods, watches, jewelry, fashion, cosmetics, and fragrances. The revenue in 2023 marks a 13.5% annual increase and is more than double the growth rate of 2022. 

A closer look shows that aside from a slump in 2020, which market analysts attribute to the COVID-19 pandemic, consumer spending on luxury goods has generally increased annually since 2018. That year, luxury retail sales totaled $286.1 billion. It rose by 6.8% in 2019, to $305.5 billion—surpassing the $300 billion milestone for the first time. The 15.2% plunge in 2020 saw luxury spending fall to $259.1 billion. But the industry recovered swiftly the following year, rising by 13.5%, to $294.2 billion. In 2022, the luxury sector saw sales return to pre-pandemic numbers, growing by 6.3%, to $312.6 billion. 

→ Click Here to Launch Your Online Business with Shopify

Global luxury industry sales: 2024–2028

Looking ahead, market experts predict that global luxury spending will continue to rise, but at a slower rate. In 2024, a 4% annual increase is expected, which will bring total revenue to $369 billion. Slight slowdowns are forecast for the subsequent two years, as revenues grow by 3.6% and 3.3%, to $382.2 billion and $394.9 billion, respectively.

In 2027, the luxury goods industry is forecast to rise by 3%, to $406.6 billion. Another annual increase of 3% is set to follow in 2028, as revenues total $418.9 billion.

From 2024 to 2028, the global luxury market is projected to grow at an average annual growth rate of 3.4%. This is slower than the 5% growth rate recorded between 2018 and 2023.

Start selling online now with Shopify

Start your free trial

Want to learn more?