Revealed: Future of the $261 billion personal luxury products market

February 3, 2021 | By RetailME Bureau

Data presented by Fraîcheur Paris indicates that beauty products accounted for 22% of the 2020 global personal luxury goods market. It ranked second highest after accessories, which accounted for 36%. Hard luxury had a share of 21% tying with apparel.

The research also explored the 2020 global luxury market, which totaled to about $1.2 trillion. Luxury cars accounted for half of the entire market share at $605 billion to occupy the top spot, followed by personal luxury goods at $261 billion. Luxury cruises had the least share at $1.2 billion.

Personal luxury goods market contracts amid pandemic

The market share of personal luxury goods in 2020 was heavily impacted by the coronavirus pandemic like many other sectors. The market size even recorded the biggest drop in a decade as changes to the consumer mindset forced many to spend more time at home while minimizing non-essential items. There was also reduced air travel, a greater focus on family and self-care.

The wide-scale lockdowns contributed to the contraction of the market size as the situation impacted consumer confidence. Some consumers saw no sense in spending more on luxury goods since there was little opportunity to use the products owing to restricted global traveling.

Beauty products were able to account for a significant share of the luxury products thanks to a change in consumer behavior. Many brands adapted by scaling up online sales to offset the decline from in-store sales. Notably, the e-commerce sector skyrocketed during the pandemic, with many retailers taking advantage.

In general, beauty habits change when the consumer is at home. With the working culture spreading, for example, women find it not necessary to put on makeup.

Before the 2020 drop, the personal luxury market was rising mainly due to improving consumer living standards supported by their increasing disposable income levels. Furthermore, the high prevalence of western fashion trends catalyzed luxury product demand. The growing tourism sector was also driving the market growth. However, the sudden outbreak of COVID-19 across the globe in early 2020 reversed most sector gains.

Despite recording impressive gains before the pandemic, beauty products and other luxury goods have also been facing a rough patch. Recently, trade wars, increased global economic uncertainty, and shifts in consumer behavior and values have contributed to major shifts across the luxury goods landscape.

Road to recovery for personal luxury products

In the path to recovery, the global luxury market is influenced by a combination of factors like economic trends, consumer confidence, tourism flows, and the ability to lead brands to anticipate and meet consumer needs. Furthermore, the recovery is already being seen in regions like China.

Despite emerging as the epicenter of the health crisis, China has witnessed a revival of the luxury market after lifting measures to contain the pandemic. Among the leading luxury goods markets, China had earlier resorted to months of store closures, social distancing, and disrupted personal and professional habits. Consumers will likely be willing to make purchases not made during the lockdown.



Previous Article Next Article


Union Coop, a consumer cooperative in the UAE, revealed that 78% of 

Continue Reading

August 24, 2021 | By Jibran Chouguley

Union Coop has opened its 23rd branch within the UAE in Jumeirah 

Continue Reading

August 2, 2021 | By Jibran Chouguley

Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and 

Continue Reading

July 8, 2021 | By Jibran Chouguley

UAE-based Al Maya Group announced that it will be boosting import of 

Continue Reading

June 24, 2021 | By RetailME Bureau

UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu 

Continue Reading

June 2, 2021 | By RetailME Bureau

UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand 

Continue Reading

March 31, 2021 | By RetailME Bureau

Locally owned supermarket Spinneys celebrates 60 years of doing business in the 

Continue Reading

March 9, 2021 | By RetailME Bureau
Almarai, Carrefour, Emirates have the most loyal customers

UAE-based Carrefour will become the first retailer in the region to offer new levels 

Continue Reading

February 22, 2021 | By RetailME Bureau

The Organic Farmers’ Market is back in Bay Avenue for its 12th 

Continue Reading

February 17, 2021 | By RetailME Bureau

UAE-based  Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah, 

Continue Reading

February 15, 2021 | By RetailME Bureau
Jones the grocer

Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones 

Continue Reading

February 1, 2021 | By RetailME Bureau

UAE-based Al Maya Supermarkets is hosting a two-week food festival at select 

Continue Reading

January 17, 2021 | By Lawrence Pinto

Download Images RetailME Magazine