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.
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.
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.
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.
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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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.
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Luxury Goods
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
See all of our definitionsThis report originates from Passport, our Luxury Goods research and analysis database.
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