Luxury & Spirits Market Landscape
Identify the state of the luxury market in light of the pandemic, as well as trends in luxury purchases by Millennials.
- Overall, the luxury market is expected to grow to US$388 billion by 2025, up from US$285.1 billion in 2020. However, the Coronavirus pandemic is having a drastic impact on the market.
- Sales in the luxury goods market were expected to fall by 35% in 2020 due to the pandemic.
- In the US, 13% of consumers are expected to delay luxury purchases, while 2% will prioritize luxury purchases.
- The pandemic has accelerated the trend of affordable luxury.
- In the aftermath of the Coronavirus pandemic, 3 in 10 consumers that delayed luxury purchases will seek out flexible payment options for their luxury purchases.
Millennials and the Luxury Market
- According to a survey by Bain & Co in February 2020, 40% of global luxury spending comes from millennials and Gen Z consumers. These consumers are also driving 100% of the growth in luxury markets.
- Most millennials (60%) have cut back on spending during the Coronavirus pandemic. For millennials that can afford to do so, they are still making luxury purchases during the Coronavirus pandemic in order to seek comfort.
- Younger luxury consumers want to see luxury brands take action during the pandemic, especially when it comes to keeping employees safe.
- While millennials and Gen Z were already driving the digital transformation of the luxury industry, the Coronavirus pandemic has pushed that digital transformation even further, with almost all shopping being done online from home during the crisis.
- Recent surveys have found that Gen Z consumers have been the least deterred in purchasing luxury products during the Coronavirus, with 50% stating that they are "not hesitating when considering luxury goods purchases."
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