Luxury shoppers become increasingly discerning as economic pressures impact demand
Retail value sales of luxury goods in Australia are notably slowing in 2024 compared to the double-digit growth rates of the previous two years. Nevertheless, growth is largely driven by premiumisation, as discerning shoppers become even more finely tuned to the timeless quality and value encapsulated by luxury purchases.
Surging inflation, high interest rates and increased living expenses are among the economic headwinds impacting luxury goods
According to Euromonitor International’s Economies and Consumers annual data in 2023, there were 3,300 ultra high net worth individuals (UHNWIs) in Australia, 141,600 high net worth individuals (HNWIs) and 1,657,500 affluent adults. The first two segments represented less than 1% of the population, but 19% of the wealth.
Multinational automotive groups and French luxury conglomerates dominate competitive landscape of luxury goods in Australia
Given the high proportion of premium and luxury cars within luxury goods in Australia, it is unsurprising that the leading players are automotive focused, led by Tesla Inc in 2023. Nevertheless, due to reports of dwindling sales in early 2024, and increased attention on competing on price with an emerging EV mass market segment, this lead is likely to be challenged over the forecast period.
Successful omnichannel approach to luxury facilitates consumer dialogue in the digital realm, while simultaneously rejuvenating city streets and retail precincts
Retailing developments within luxury goods remain highly competitive, with luxury players focusing more on creating innovative products that offer consumers quality, value – but above all, an experience, ensuring that their product and service portfolios remain top-of-mind for luxury shoppers. As digitalisation encourages local consumers to shop more online and engage with retailers and brands in a different way, physical retailers are increasingly focused on turning their retail premises into destinations in themselves and change their outlets to attract foot traffic and facilitate a potentially omnichannel consumer dialogue.
Improved outlook for premium and luxury cars, experiential luxury and fine wines/champagne and spirits
Luxury goods is predicted to record a 5% value CAGR (at constant 2024 prices) over the forecast period, fuelled by the recovery of sales within premium and luxury cars (a 6% value CAGR, at constant 2024 prices). Both experiential luxury and fine wines/champagne and spirits are also expected to record strong performances, while personal luxury sales are anticipated to remain more subdued, due to a global downturn.
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Overview:
Understand the latest market trends and future growth opportunities for the Luxury Goods industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Experiential Luxury
- Luxury Hotels
- Fine Wines/Champagne
- Premium and Luxury Cars
- Personal Luxury
- Designer Apparel and Footwear
- Luxury Eyewear
- Luxury Jewellery
- Luxury Leather Goods
- Luxury Portable Consumer Electronics
- Luxury Timepieces
- Luxury Writing Instruments and Stationery
- Super Premium Beauty and Personal Care
If you're in the Luxury Goods industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Luxury Goods in Australia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Luxury Goods in Australia?
- Which are the leading brands in Luxury Goods in Australia?
- How are products distributed in Luxury Goods in Australia?
- How important is tourism in evaluating demand for Luxury Goods in Australia?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How has COVID-19 and global recession impacted demand for luxury goods? What are the opportunities amidst the adversity?
- Where is future growth expected to be most dynamic?
Luxury Goods in Australia
Luxury shoppers become increasingly discerning as economic pressures impact demand
Surging inflation, high interest rates and increased living expenses are among the economic headwinds impacting luxury goods
Multinational automotive groups and French luxury conglomerates dominate competitive landscape of luxury goods in Australia
Successful omnichannel approach to luxury facilitates consumer dialogue in the digital realm, while simultaneously rejuvenating city streets and retail precincts
Improved outlook for premium and luxury cars, experiential luxury and fine wines/champagne and spirits
DISCLAIMER
Experiential Luxury in Australia
KEY DATA FINDINGS
Innovation, creativity, authenticity and indulgent novelty ensure dynamism within experiential luxury
International players dominate luxury hotels across 5-star stalwarts and unique lifestyle luxe boutique options
Potential long-term industry disruptor: AI’s relevance for today’s luxury customer
Travel recovery and demographic shift towards older, wealthier travellers likely to contribute to dynamic performance of experiential luxury
A strong focus on sustainability means luxury hotels will look to differentiate their eco-credentials
High occupancy rates anticipated for luxury hotels over the forecast period
Fine Wines/Champagne and Spirits in Australia
KEY DATA FINDINGS
Luxury spirits leads the way as value growth is driven by luxury whiskies and vodka
Premiumisation evident through consumer preference for considered craftsmanship, top-quality ingredients and authentic provenance
Health-conscious drinking enters mainstream as non/low alcohol gains traction both locally and internationally
Higher alcohol duty, particularly on spirits, a factor to consider over the forecast period
Aspirational global collaborations keep luxury spirits refreshed, rejuvenated and accessible to more diverse demographics
Environmental, social and governance efforts within luxury spirits
Premium and Luxury Cars in Australia
KEY DATA FINDINGS
Accelerated growth stalls as demand softens in 2024
Most robust performances geared around sustainability, performance, spaciousness, comfort and aspirational lifestyle-driven marketing
Luxury plug-in hybrids record strong growth in 2024 as business buyers rush to take advantage of fringe benefits tax rules
Tesla sales set to be impacted by price cuts and consumer perceptions
Federal Government investigates feasibility of autonomous cars on Australian roads
Manufacturers adapt to Australians’ propensity for plug-in hybrid electric vehicles
Personal Luxury in Australia
KEY DATA FINDINGS
Designer apparel and footwear (ready-to-wear) focuses on digital transformation to enhance sizing, manufacturing and accessibility
No longer just functional and fashionable, luxury eyewear is set to leverage AI innovation
Lab-grown diamonds capture inspired storytelling angle to uniquely make their mark on luxury jewellery in Australia
Contemporary “quiet luxury” offers understated alternative to rising prices of luxury leather goods from established brands
Tech advances within luxury wearables aligned with biohacking and wellness trends
Global economic headwinds lead to slowdown in luxury timepieces, with decline in export volumes of Swiss luxury watches
Sophisticated gifting remains a key driver of luxury writing instruments
Australian luxury shoppers feel under increasing financial pressure in their beauty and personal care purchases
Post-pandemic performance hampered by global slowdown, but optimism offered by domestic spend and return of international tourists
Second-hand market viewed as more sustainable, both for the environment and household budgets
The role of e-commerce within personal luxury is constantly evolving
The following categories and subcategories are included:
Luxury Goods
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- Luxury Foodservice
- Luxury Hotels
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- Fine Champagne
- Other Fine Wine
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- Luxury Brandy and Cognac
- Luxury Whiskies
- Other Luxury Spirits
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- Premium and Luxury Cars
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- Men's Designer Apparel
- Women's Designer Apparel
- Designer Childrenswear
- Designer Clothing Accessories and Hosiery
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- Children's Designer Footwear
- Men's Designer Footwear
- Women's Designer Footwear
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- Luxury Spectacle Frames
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- Men's Luxury Sun Glasses
- Women's Luxury Sun Glasses
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- Luxury Costume Jewellery
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- Men's Luxury Fine Jewellery
- Women's Luxury Fine Jewellery
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- Men's Luxury Bags and Small Leather Goods
- Women's Luxury Bags and Small Leather Goods
- Luxury Travel Goods
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- Luxury Wearables Electronics
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- Men's Luxury Timepieces
- Women's Luxury Timepieces
- Luxury Writing Instruments and Stationery
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- Super Premium Colour Cosmetics
- Super Premium Fragrances
- Super Premium Skin Care
- Other Super Premium Beauty and Personal Care
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Luxury Goods
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
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This report originates from Passport, our Luxury Goods research and analysis database.
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