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Products Over Experiences: How Luxury Spending Adjusted to 2021’s Constraints

Furniture, fine wine, and spirits substituted for hotels and cruises—but a rebound in experiences is brewing.

Snap Chart

Products Over Experiences: How Luxury Spending Adjusted to 2021’s Constraints
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Travel restrictions continued to shape the overall luxury market in 2021, curbing spending on hospitality and cruises to well below prepandemic levels. Yet we forecast that the personal luxury goods market will grow 29% in 2021, while designer furniture and housewares should be up 13%–15% on 2020 and 6%–8% on 2019. Fine wine and spirits thrived too, with the market likely expanding 12%–14% in 2021.

Asian outperformance helped luxury car sales weather supply chain disruption, with the market now set to be back at 2019 levels. The appeal of private yachts was buoyed by public health concerns, while demand for private jets was stable. The fine art and fine dining markets rebounded thanks to the reopening of public auctions, art fairs, and the world’s leading restaurants.

But while consumers turned more to luxury goods in 2021, we forecast a strong recovery for luxury experiences, including high-end hospitality and cruises, which should return to 2019 levels by 2024.

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