The global luxury apparel market size was valued at USD 63.00 billion in 2023. The market is expected to reach USD 93.10 billion by 2030 with a CAGR of 5.74% during the forecast period. According to a report by Fortune Business Insights™ in its report titled “Luxury Apparel Market, 2024–2030.”
Known for their uniqueness and innovative designs, luxury fashion companies allow people to showcase their style and give them a chance to stand out from the crowd. These brands have been focusing on offering personalized shopping experiences to their consumers. Augmented demand for high-quality and premium apparel products is set to drive market growth.
Top key companies covered in the luxury apparel market:
- Gucci (Italy)
- Prada S.p.A. (Italy)
- Dior SE (France)
- Ralph Lauren Corporation (U.S.)
- Armani S.p.A. (Italy)
- Chanel (U.K.)
- Burberry (U.K.)
- LVMH (France)
- Dolce & Gabbana (Italy)
- Valentino S.p.A. (Italy)
Luxury apparel market trends
Inclination of Consumers Toward Sustainable Apparel Products to Boost Market Growth
The trend of sustainability in the luxury apparel industry has been growing steadily in recent years. Luxury brands are increasingly embracing sustainability to align with consumer demand for ethical and environmentally responsible fashion.
The companies are using sustainable and eco-friendly materials in their products. This includes materials such as organic cotton, recycled polyester, Tencel, and cruelty-free alternatives to animal-derived materials.
Besides, some luxury brands are adopting circular fashion practices, which involve designing products to be recycled, upcycled, or repurposed. They are also exploring take-back programs and resale partnerships to extend the lifespan of their products. For instance, in February 2023, Gucci, an Italy-based luxury fashion brand, prepared to establish a center in Tuscany dedicated to advancing sustainable and less wasteful fashion, aligning with the industry’s collective endeavors to comply with upcoming European regulations that mandate companies to minimize their environmental impact.
Drivers and restraints
Growth in the Demand for High-Quality and Premium Apparel Products to Drive Market Growth
Increasing demand for high-quality and premium apparel products is set to drive the luxury apparel market growth. The term luxury apparel is often associated with the highest craftsmanship and quality. People seek garments made from the finest materials that can last long, this attracts consumers to luxury brands. Luxury brands offer superior fit and comfort owing to the attention to detail that goes into designing and tailoring.
However, the presence of various low-priced clothing brands and fast fashion retailers is hampering the market growth.
Regional insights
Europe Leads Owing to Region’s History in Craftsmanship and Luxury Fashion
Europe held the largest part of the global luxury apparel market share in 2022, as the region is known for its rich history in terms of craftsmanship and luxury fashion. The region is home to numerous iconic luxury brands which originated from France, the U.K., and Italy. These iconic brands are known to produce high-quality luxury apparel. The market was valued at USD 20.50 billion in 2022.
Asia Pacific has been experiencing an increase in economic growth, which has led to an expansion of consumers’ financial capacity to invest in luxury clothes.
Key industry developments
July 2023: Ralph Lauren, a U.S.-based luxury apparel company, revealed a fresh clothing line created in partnership with G2 Esports.
December 2022: Dior, an international brand of luxury goods, unveiled the “Dior Tears” campaign in partnership with Denim Tears for the Fall 2023 collection. This initiative comes on the heels of a series of noteworthy collaborations led by Jones, including a menswear Spring ’23 capsule with Eli Russell Linnetz earlier in the year and previous ventures with Shawn Stussy, sacai, KAWS, and Daniel Arsham.
November 2022: Prada, a worldwide luxury apparel brand, revealed a collection inspired by the abaya, with proceeds dedicated to supporting Qatar’s creative industry.
December 2021: Burberry, a global luxury fashion brand, expanded its commitment to circular fashion by announcing intentions to introduce rental and resale services through a new collaboration with My Wardrobe HQ.
June 2020: Gucci, an Italy-based luxury fashion brand, launched the ‘Gucci Off The Grid collection,’ a fully sustainable line crafted exclusively from recycled, organic, and responsibly sourced materials.
Source: Fortune Business Insights™ report Luxury Apparel Market, 2024–2030
