Growth in the global luxury sector declined in 2024, a trend that is expected to continue in the coming years. Although China, the largest market for luxury goods, saw a decline in growth in 2024, it is projected to rebound with positive growth through 2027, Senior Partner Anita Balchandani and coauthors explain. The US luxury market is expected to see steady growth, while Europe’s may be more moderate. Luxury brands may have to try a strategic reset for long-term success.
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A stacked bar chart depicts the global market for personal luxury goods across different regions (Rest of World, China, US, and Europe) in billions of US dollars from 2019 to 2027. In 2019, the market size was ~$270 billion. All markets have grown slightly and are expected to continue slow growth, of 1–3%, by 2027, to a global total of ~$360 million.
Note: This image description was completed with the assistance of Writer, a generative AI tool.
Source: Analyst reports, company results, and expert interviews; ECB; Euromonitor historicals; Savills; Trading Economics; McKinsey Global Fashion Index in The State of Fashion 2025; McKinsey Global Institute analysis.
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To read the report, see “The State of Luxury: How to navigate a slowdown,” January 13, 2025.