US Luxury Goods Market (2022–2026)
The luxury sector currently ranks among theindustries with the highest average order values, with checkouts averaging close to $200.
How is the industry performing in general? Here’s a look at the US luxury goods market and its total retail sales in recent years.
US luxury goods market: 2023
According to arecent study, the US luxury goods market is set to bring in sales totaling $116.6 billion in 2023. This marks a 6.7% annual increase, which is half the growth rate of the previous year. In 2022, the US luxury goods market grew by 13.3%, to $109.3 billion.
Experts say that these figures show that the sector has remained mostly unaffected by some of the challenges other industries have faced, such as inflation and reduced consumer expenditure.
US luxury goods market: 2024–2026 forecast
Analysts expect the luxury goods market to continue growing in the coming years but at much slower growth rates. For instance, retail sales are forecast to increase by 4.1% in 2024, to $121.3 billion, before rising 2.5%, to $124.4 billion, in 2025. By 2026, the US luxury goods market is set to be worth $126 billion, increasing at an annual growth rate of 1.3%.
From 2022 to 2026, sales of luxury goods are expected to rise by $16.7 billion. This is a 15.3% overall increase and an average annual growth rate of 5.6%.
US luxury goods market: top products and preferences
The most popular product on the US luxury goods market is currently footwear. As many as 47.3% of US adults say they have purchased footwear from a luxury brand in the previous year.
This is followed by handbags and leather goods such as purses, belts, and wallets—46.2% of consumers have bought branded leather goods in the past 12 months.
Cosmetics and beauty products and fragrances are also among the most popular luxury items consumers have purchased, with 45.4% of them having done so.
If you’re thinking about launching an online luxury goods store or branching into the sector, you might want to keep in mind some of the top online shopping preferences of luxury goods shoppers. According to a survey, the biggest factor for purchasing luxury items online is discounts and deals—29.6% of consumers say it’s what drives them to buy such products over the internet instead of in-store.