The global luxury apparel market is expected to stage a gradual recovery after contracting 2.4% in 2024, according to GlobalData’s Global Luxury Apparel Market to 2029 report. While growth resumes in 2025, it will be driven mainly by price increases, not expanding sales volumes.
GlobalData forecasts that the sector will grow by 2.0% in 2025, despite continued volume declines, as brands raise prices to protect their margins. From 2024 to 2029, the market is projected to expand at a 2.8% CAGR, eventually outperforming the broader apparel sector by 2028 as the financial situation of aspirational shoppers improves.
Category performance diverges sharply:
• Clothing: strongest segment, 3.1% CAGR, boosted by ultra-wealthy consumers and women’s trend-led purchases.
• Accessories: 2.9% CAGR, with luxury handbags retaining status-symbol appeal.
• Footwear: weakest, 1.0% CAGR, constrained by stronger trainer demand in premium and mass channels.
Regionally, Asia-Pacific will be the main growth engine with 4.0% CAGR, driven by a rebound in China and rising demand in emerging Asian economies. Europe and the Americas lag at 1.8% and 1.5% respectively, reflecting weak macro conditions and US tariff effects. The Middle East (notably Saudi Arabia and the UAE) strengthens its global share via tourism and robust domestic buying.
Brand performance underscores widening competitive gaps. Louis Vuitton held its lead with 9.8% market share. Hermès gained the most (+0.7 points to 6.0%), proving the resilience of exclusivity and craftsmanship. Chanel also expanded share through strategic pricing. Conversely, Gucci and Burberry lost ground amid muted product momentum and less coherent brand positioning.
The recovery rests on several structural levers:
• Ultra-wealthy consumers remain resilient, underpinning top-tier houses.
• Improving macro conditions gradually restore purchasing power among aspirational middle-income buyers.
• Influencer-driven marketing intensifies, capturing Gen Z via Instagram, TikTok and celebrity-led collaborations.
• The resale boom—projected to grow nearly 48% from 2024–28—creates both opportunity (brand-approved resale partnerships) and margin pressure (diversion from full-price sales).
Yet headwinds persist. China’s 2024 slowdown, tied to real estate stress and government messaging discouraging ostentatious consumption, weighs on sentiment. Meanwhile, the collapse of several online luxury marketplaces in 2024 re-centred the importance of physical boutiques, where service and in-store experience remain critical to driving high-value sales.
The luxury sector enters 2025 in a cautious but stabilising position. Leaders will focus on:
• disciplined price management,
• tighter brand positioning,
• renewed product creativity,
• controlled channel strategy (retail over multi-brand e-commerce), and
• selective engagement with resale ecosystems.
By late decade, improved consumer finances and APAC momentum should lift the sector, but recovery will be uneven — favouring brands with strong pricing power, cultural relevance and clear strategic identity.
