The luxury apparel market grew by 24.2% in 2021, with major luxury conglomerates, LVMH and Kering, capitalizing on the heightened consumer appetite for luxury goods as demand surged with the easing of COVID-19 restrictions, says GlobalData. The leading data and analytics company notes that while this growth is set to slow in 2022 after an exceptional growth in 2021, as the market recovered from its COVID-19 related losses, it will remain high at 10.0% and reach $149.2 billion in 2022, significantly outperforming the global apparel market which is set to rise by 8.4% in 2022.

GlobalData’s latest report, ‘Luxury Apparel Market Size, Sector Analysis, Consumer and Retail Trends, Competitive Landscape and Forecast, 2020-2025’, notes that luxury apparel products have experienced a surge in popularity as Gen-Z and millennial consumers perceive them as increasingly aspirational, with brands such as Balenciaga and Louis Vuitton successfully tailoring their offers to younger shoppers.

Louise Deglise-Favre, Apparel Analyst at GlobalData, comments: “Luxury brands have been incorporating more casual and streetwear styles into their ranges, embracing the general casualization trend sweeping the fashion industry. For example, Louis Vuitton, Dior and Gucci have collaborated on limited edition collections with leading sportswear and streetwear brands such as Nike, Adidas and The North Face during the past few years. These luxury sportswear collaborations have proved extremely popular, especially with Gen-Z consumers, placing luxury brands in an ideal position for growth in 2022 and beyond.”

The luxury apparel market’s outstanding performance will be boosted by strong domestic demand in the Asia-Pacific (APAC) region and the US despite mounting economic difficulties.

Deglise-Favre continues: “APAC will outperform the total luxury market until 2025, with a compound annual growth rate (CAGR) of 7.9% between 2022 and 2025, compared to 6.7% for the total luxury market. This is due to sustained demand for luxury goods and the investment luxury brands have made through opening stores and targeted marketing campaigns and collections.”

The luxury market in the US has also proved resilient, as consumers’ disposable income was bolstered by stimulus cheques in 2020 and 2021, with many consumers investing in luxury goods, especially handbags, as a result. The US will continue experiencing strong growth in 2022 and beyond, rising at a CAGR of 11.3% between 2020 and 2025 due to continued demand for aspirational luxury goods.

Deglise-Favre adds: “The luxury market is well positioned in 2022, as the wealth of its core shoppers will protect them from the rising inflationary pressures on their discretionary incomes.”