Global luxury apparel market to rebound slowly after 2024 setback – analysis

The planetary luxury apparel marketplace volition acquisition a gradual betterment aft a 2.4% contraction successful 2024, investigation indicates.

According to GlobalData Global Luxury Apparel Market to 2029 report, maturation volition instrumentality successful 2025, but it is expected to beryllium mostly fuelled by terms increases alternatively than higher income volumes.

Macro pressures including ostentation crossed Europe and the US and a crisp slowdown successful China dented user spending past year, producing the market’s archetypal worldly setback successful respective years. GlobalData’s study forecasts that the assemblage volition turn by 2.0% successful 2025 arsenic brands rise prices to support margins, adjacent arsenic volumes proceed to decline.

Over the 2024–29 period, the marketplace is expected to turn astatine a compound yearly complaint (CAGR) of 2.8% and to statesman outperforming the broader apparel marketplace from 2028 arsenic the finances of aspirational shoppers improve.

Clothing is projected to beryllium the strongest class done 2029, with a 3.1% CAGR driven by ultra-wealthy consumers who stay consenting to walk connected trend-led pieces; womenswear is expected to outperform menswear. Accessories – led by luxury handbags arsenic enduring presumption symbols – should grounds a 2.9% CAGR. Footwear looks acceptable to beryllium the weakest area, with a humble 1.0% CAGR, arsenic beardown request for trainers from premium and mass-market specialists limits maturation for high-end footwear categories.

Asia-Pacific volition beryllium the maturation engine, posting the strongest determination CAGR of 4.0% betwixt 2024 and 2029, supported by the betterment of China and robust maturation successful emerging Asian markets. In contrast, Europe and the Americas are forecast to acquisition softer maturation – 1.8% and 1.5% CAGRs respectively – hampered by sluggish economies and the lingering effects of US tariffs. The Middle East and Africa volition summation its stock of the planetary market, with Saudi Arabia and the United Arab Emirates benefiting from tourism and beardown home spending.

Luxury heavyweights retained powerfulness successful 2024. Louis Vuitton remained the largest apparel brand, expanding its marketplace stock to 9.8%. Hermès was the standout performer, expanding stock by 0.7 percent points to 6.0% arsenic its exclusivity and craftsmanship held beardown entreaty among the ultra-wealthy. Chanel besides gained share, mostly done strategical terms increases. By contrast, brands specified arsenic Gucci and Burberry mislaid crushed amid unclear positioning and weaker merchandise offerings.

Several structural factors underpin the betterment outlook. Ultra-wealthy customers proceed to supply a stabilising basal for top-tier luxury houses, maintaining request and preserving marque equity. Meanwhile, improvements successful broader macroeconomic conditions and rising user assurance should gradually bring backmost aspirational shoppers – the expanding mediate and upper-middle segments whose purchasing powerfulness was astir affected during the downturn.