The next six years will see the global luxury market grow to EUR 880 billion (US $1,187 billion) from EUR 730 billion ($985 billion) with the number of luxury consumer jumping to 440 million in 2020.
There are currently 380 million individuals who would be identified as luxury consumer by BCG.
“Growth will be mainly driven by core customers, with 10 million new customers in 2020 and increasing sales of EUR 85 billion,” said Antonio Achilles, partner and managing director of Boston Consulting Group
The markets most affected will be the United States, followed by China, Europe and the Middle East.
From the total of 380 million consumers, BCG identified 32 million consumers as “core”, each spending an average of 30 thousand Euros ($45 thousand) in personal luxury as well as ‘experiential’, representing approximately 40 percent of the total market value. The majority remainder are aspirational consumers, who would typically invest up to EUR 2,000 per year ($2,700).
The research was unveiled at the ‘Altagamma Consumer and Retail Insight event in Milan last week. BCG presented “True Luxury Global Insight” with another report, “The Altagamma Retail Evolution”, touted by Exane BNP Paribas.