Luxury Goods Sales Have Recovered To Pre-Pandemic Growth: Report

Luxury goods sales just went from dip to rip.

After plunging due to the global health crisis, the personal luxury goods market returned to pre-pandemic growth in 2021, with sales estimated to top 283 billion euros ($325 billion) by year-end, according to a new report by Bain & Company. That would represent a slight increase from then-record sales of 281 billion euros ($318 billion) in 2019.

Bain analysts note that these figures include only high-end merchandise, from leather handbags to jewelry to fragrances. Luxury “experiences,” such as travel and dining, still lag 2019 levels due to the ongoing pandemic.

Young Consumers In The U.S. And China Powering Growth

The V-shaped recovery was largely powered by the U.S. and China, with U.S. consumers outspending their Chinese counterparts by 1.5 times, the report says.

That’s despite the fact that the luxury market in China has nearly doubled since 2019. Consumers there are so hungry for luxury brands that Louis Vuitton is reportedly considering opening its first duty-free store in China, on the island-province of Hainan, which has rapidly become a luxury shopping destination for Chinese tourists unable to travel overseas due to pandemic restrictions.