Luxury item sales are projected to grow 13% growth this year despite the coronavirus pandemic, reaching a value of more than $380 billion by 2025, according to a new study by CouponChief based on data from Statista.
Experts say that the reasons for the expected boost is from an increasingly wealthy population, advancements in technology, and sustainability initiatives being woven into product offerings.
More than one in three respondents said they expected their spending to increase in the coming year. Experts attribute this attitude to the fact that people may be feeling more stable in their financial lives as the unemployment rate continues to fall.
Other results from the study show:
- Leather goods sales are projected to be the fastest-growing luxury item, with luxury fashion expected to register the highest sales volume by 2025.
- Eighty-six percent of people own at least one luxury item - the most common items are watches and jewelry (54%), eyewear (42%), and makeup and perfumes (41%)
- During the pandemic, the United States made up almost 25% of all luxury spending around the world, despite 31% of the people saying their desire for luxury goods decreased and 43% saying their spending on luxury goods went down.
- Eighty-six percent of people said they felt moderate to significant pent-up desire to make certain purchases following the pandemic
For this study, two data sources were used: a survey of 1,016 respondents conducted by Coupon Chief, and the Statista Luxury Goods Report 2020. Among the 1,016 respondents, 516 were female, 490 were male, and 10 identified as nonbinary or did not provide a gender. Our respondents ranged in age from 18 to 77, with an average age of about40.
To help ensure statistical accuracy, all respondents were required to identify and correctly answer an attention check question. These survey data rely on self-reporting.
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