[UK, 21/12/2022] The retail industry can expect 2023 to become a good year. This is particularly true for companies that cater to the higher end of the market. Despite economic turbulence, the global luxury market has seen an increase in sales lately, which will continue next year.

Luxury Market in 2022
 
At the end of 2022, the global luxury market is predicted to expand by 21 per cent reaching €1.4 trillion, according to the 21st edition of the Bain & Company–Altagamma Luxury Study. On the other hand, the growth of the personal luxury goods market will accelerate by 22 per cent and reach €353 billion.

Europe and the United States are still at the top, but new countries with high disposable income are coming up. By 2022, almost all luxury brands will have grown thanks to this market trend.

Final Outcome for 2022

But the report reveals that the outcome of 2022 will largely depend on how well China lifts its pandemic restrictions and how confident European and American luxury consumers remain in the face of a potential recession.

Despite the ongoing economic challenges, luxury brands have continued to perform well this year, with winners across the board. According to the report, positive growth will reach 95 per cent of all brands.

Resilient Luxury Goods Market
 
According to Bain and Altagamma's analysis, although recessions are predicted in most major economies through 2023, luxury goods sales will continue to grow.

Even if there is a recession next year, the research shows that the luxury market can handle it better than during the 2008 to 2009 global financial crisis. The customer base is now both larger and more concentrated, and touchpoints have become more customer-centric and resilient in the face of disruptions.

Bain-Altagamma's analysis has shown that sales growth in the personal luxury goods market will be between three and five per cent or six to eight per cent, depending on China's economic recovery and the ability of Europe and the US to overcome economic headwinds.

Tech-Enabled Profit
 
The report also reveals that the personal luxury goods market prospects are positive and will continue until 2030. The study found that using technology and solid market fundamentals, market valuation will reach approximately €580 billion by 2030. This value will rise from an estimated €353 billion in 2022, an increase of at least 60 per cent.

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