Luxury Apparel Market Size, Sector Analysis, Consumer and Retail Trends, Competitive Landscape and Forecast, 2020-2025

Luxury Apparel Market Overview

The luxury apparel market size was valued at $109.2 billion in 2020. The market is projected to grow at a CAGR of more than 9% during the forecast period. Luxury apparel will recoup its losses from the pandemic by 2022, driven by heightened demand in APAC and the Americas. Growth in APAC has been boosted by the rising number of middle-class consumers and the shift to domestic purchasing due to COVID-19 international travel restrictions, while sales in the Americas have been bolstered by federal stimulus payments. Formalwear-centric brands suffered the most in 2020 as the pandemic led to an acceleration in the adoption of athleisure. In contrast, brands that were early adopters of streetwear and athleisure trends were more resilient as they benefitted from the front-of-mind appeal.

Luxury Apparel Market Overview 2020-2025 ($ Billion)

This luxury apparel market research report provides an overview of the global luxury fashion retailing which includes key trends, key retail innovations, regional and sector analysis along with major luxury fashion retailers, and the competitive landscape.

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Luxury Apparel Market Drivers

The growing popularity of luxury apparel among Millennial and Gen-Z shoppers is driving the market due to their enthusiasm for aspirational products. New technologies such as augmented and virtual reality, artificial intelligence, and blockchain are providing brands with new opportunities to boost revenue, with the metaverse recently emerging as a significant potential driver of sales. Moreover, the APAC luxury apparel market saw a boom in demand in 2020 and 2021 due to international travel restrictions, as consumers were unable to purchase luxury items abroad. Athleisure and sportswear will remain an important focus for luxury brands in 2022 and beyond, as consumers continue to gravitate towards comfortable apparel in a wider range of social settings, as well as prioritizing their health and fitness.

Luxury Apparel Market Segmentation by Region

Asia-Pacific: The Asia Pacific region will retain the largest share of luxury apparel out to 2025. This dominance is driven by Chinese consumers’ sustained demand for luxury fashion, the rising middle class, and continued urbanization in the country. Other contributing factors are the high growth rates forecast in major Asian markets such as India and the Philippines.

Europe: E-commerce is well established in Europe, and platforms such as Farfetch and Net-a-Porter have made it easier to purchase luxury items, boosting spend via the channel. But physical stores retain their appeal due to the elevated in-store experiences associated with luxury players. Turkey will grow the fastest out to 2025 However, the conflict in Ukraine might dampen the growth in Eastern European countries due to its widespread consequences within the region.

The Americas: In the Americas, luxury apparel market almost bounced back to pre-pandemic levels in 2021 as disposable income in the dominant market of the US was supplemented by federal stimulus cheques and tax returns. The US will remain the largest market for luxury apparel within the Americas through to 2025, while Canada will grow the fastest. In Latin America, Colombia and Peru will be the fastest-growing countries.

The Middle East and Africa: The luxury apparel market in MEA declined in 2020 due to its reliance on tourist expenditure and the impact of store closures. However, this decline is soft in comparison to other regions thanks to highly affluent domestic individuals supporting luxury apparel sales in the region by shifting them spend domestically due to the lack of international travel. The region saw sales almost totally recover in 2021, as travel restrictions eased and events such as the Dubai Expo 2020 encouraged tourism in the UAE.

Luxury Apparel Market Analysis by Key Regions, 2020 (%)

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Luxury Apparel Market Analysis by Category

The key categories in the luxury apparel market are clothing, footwear, and accessories. While clothing will remain the biggest category, accessories will gain the most share of the market in the forecast period.

Luxury Apparel Market Analysis By Categories, 2020 (%)

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Luxury Apparel Market – Competitive Landscape

Some of the key brands in the luxury apparel market are Gucci, Louis Vuitton, Chanel, Hermès, Dior, Burberry, Saint Laurent, Fendi, Moncler, and Prada. Gucci remained the largest luxury brand in 2020.

Luxury Apparel Market Analysis by Key Brands, 2020 (%)

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Key Segments Covered in this Report.

Luxury Apparel Regional Outlook ($ Million, 2020-2025)

• Asia-Pacific
• Europe
• The Americas
• The Middle East & Africa

Luxury Apparel Category Outlook ($ Million, 2020-2025)

• Clothing
• Footwear
• Accessories

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