The 21st edition of the Bain & Company Luxury Study, released in collaboration with Italian luxury goods body Fondazione Altagamma, shows a continuation of 2021’s potent recovery in 2022, despite rising macroeconomic pressures throughout the year. All categories thrived, and sales should grow at about 95% of brands. South Korea and Southeast Asia were stellar luxury markets, while the US and Europe enjoyed strong growth.
The key mainland Chinese market was constrained by Covid-19 lockdowns. Its fourth-quarter performance will influence the global 2022 sales outcome, but we expect China to recover next year. Globally, we see two likely scenarios in 2023, with personal luxury goods sales growth of 3%–5% or 6%–8% at constant exchange rates, depending on the strength of the Chinese recovery and the ability of the US and Europe to withstand economic headwinds.