Luxury Goods Market to Cross USD 598 Billion by 2031 Driven by Influence of Social Media & Celebrity Endorsement, Reports Mordor Intelligence

The market is projected to grow at a 4.32% CAGR from 2026-2031, driven by rising affluent consumers, omnichannel retail expansion, and increasing demand for heritage luxury brands.

Hyderabad, India, May 19, 2026 (GLOBE NEWSWIRE) — According to a research report by Mordor Intelligence, the global luxury goods market size is projected to grow from USD 484.15 billion in 2026 to USD 598.17 billion by 2031, expanding at a CAGR of 4.32% during 2026–2031. Growth is being driven by rising digital connectivity, strong demand for heritage luxury brands, growing affluent populations, and increasing emphasis on sustainability and ESG transparency among younger consumers. 

Luxury Goods Market Trends and Insights 

A major luxury goods market trend is the growing preference for sustainable, eco-certified, and traceable luxury products. 

Luxury brands are increasingly implementing buy-back programs, repair services, recycled-material collections, and transparent sourcing systems to align with changing consumer expectations and new regulatory standards. 

Sustainability and ESG Transparency Driving Premium Demand 

Mordor Intelligence highlights that sustainability has become a major growth driver in the luxury goods market. 

Consumers, especially younger demographics, increasingly prioritize ethical sourcing, eco-friendly production, and product traceability when purchasing luxury products. 

Luxury brands are responding with circular-fashion initiatives, lifetime repair services, and recycled-material collections to strengthen exclusivity while reducing environmental impact. 

“Luxury goods purchasing patterns continue to reflect a mix of evolving consumer preferences, brand positioning strategies, and regional demand dynamics, making disciplined market assessment increasingly important” says Bhavesh-Narasinha Varute, Senior Research Manager, Mordor Intelligence. “Mordor Intelligence applies a consistent research framework grounded in multiple data sources and industry validation, helping decision-makers evaluate market developments with greater confidence than reports built on limited or opaque inputs.” 

Social Media and Celebrity Endorsements Expanding Brand Reach 

Social media platforms such as Instagram and TikTok are significantly influencing luxury product discovery and purchasing decisions. 

Luxury brands are increasingly partnering with celebrities and influencers to strengthen emotional brand connections and improve digital engagement across global markets. 

Collaborations with global celebrities and K-pop influencers continue to boost visibility and create aspirational appeal among younger consumers, especially across Asia-Pacific markets. 

Rising Disposable Income Supporting Market Expansion 

Mordor Intelligence analysis shows that growing wealth accumulation and increasing disposable income are strengthening global demand for premium luxury products. 

Ultra-high-net-worth individuals continue driving sales despite macroeconomic uncertainty, while urbanization and rising middle-class spending in countries such as India are accelerating luxury adoption. 

Luxury retailers are expanding aggressively in emerging cities and premium shopping destinations to capitalize on rising aspirational consumption trends. 

Limited-Edition Products Increasing Consumer Engagement 

Consumer preference for exclusive and limited-edition collections is creating strong momentum in the luxury goods industry. 

Limited product launches generate urgency, enhance perceived value, and strengthen brand prestige through exclusivity and collector demand. 

Luxury brands are increasingly using influencer campaigns, artist collaborations, and capsule collections to drive social media engagement and rapid product sellouts. 

For a full breakdown of market size, segmentation data, and competitive intelligence on the luxury goods industry, read details of the Mordor Intelligence report at https://www.mordorintelligence.com/industry-reports/luxury-goods-market?utm_source=globenewswire  

Luxury Goods Market Segment Analysis 

By Product Type 

• Clothing and Apparel 

• Footwear 

• Eyewear 

• Leather Goods 

• Jewelry 

• Watches 

• Beauty and Personal Care 

By End User 

• Men 

• Women 

• Unisex 

By Distribution Channel 

• Single Brand Stores 

• Multi-Brand Stores 

• Online Stores 

• Other Distribution Channels 

Regional Market Insights 

Europe remained the largest regional market in 2025, supported by established luxury brands, tourism-driven retail spending, and a strong in-store shopping culture. 

Asia-Pacific is expected to register the fastest growth through 2031 due to rising disposable incomes, growing affluent populations, digital commerce expansion, and increasing luxury demand in China and India. 

North America continues to witness stable growth, while the Middle East is emerging as a major luxury shopping destination through flagship retail expansion and tourism-driven demand. 

Competitive Landscape and Strategic Developments 

The luxury goods market remains moderately fragmented, with leading players maintaining dominance through diversified portfolios, global retail networks, and strong brand heritage. 

Luxury companies are increasingly investing in digital transformation, immersive shopping experiences, blockchain authentication, AI-powered personalization, and sustainable production technologies to strengthen customer engagement and brand differentiation. 

Additionally, brands are expanding into experiential luxury through hotels, exhibitions, collaborations, and personalized services to enhance customer loyalty and broaden revenue streams. 

Key Companies in the Luxury Goods Industry 

• LVMH Moet Henessy Louis Vuitton 

• Hermès International S.A. 

• Kering S.A 

• Chanel SA 

• Compagnie Financière Richemont SA 

Other Trending Reports by Mordor Intelligence     

Gems and Jewelry Market Analysis:  

The global gems and jewelry market is projected to reach USD 493.68 billion by 2031, growing at a CAGR of 4.58% from its 2026 valuation of USD 394.74 billion. Key growth drivers include the rapid adoption of lab-grown diamonds and a demographic shift toward everyday fashion jewelry rather than traditional bridal categories. The men’s jewelry segment is also emerging as a major area of demand. Geographically, the Asia-Pacific region dominates global revenue, while the Middle East and Africa represent the fastest-growing market by volume, driven by cultural preferences and rising consumer wealth. 

China Luxury Goods Market Size: 

The luxury goods market in China is set to expand from USD 69.12 billion in 2026 to USD 93.17 billion by 2031, reflecting a robust CAGR of 6.15%. This steady growth is driven by an expanding middle class, rising disposable incomes, and strong brand loyalty among Chinese millennials and Gen-Z consumers. While leather goods hold the largest investment appeal, the market is seeing substantial growth in personalized services and sustainable high-end products. International brands are actively building omnichannel networks, utilizing major e-commerce platforms like Tmall Luxury Pavilion and JD.com to meet domestic demand, further supported by government policies and reduced import tariffs. 

Chalcedony Earrings Market Share:  

The global chalcedony earrings market is estimated to grow from USD 5.84 billion in 2026 to USD 8.41 billion by 2031, representing a high CAGR of 7.57%. Amid macroeconomic fluctuations, consumers are turning to affordable semi-precious stones like chalcedony, a trend accelerated by social media influencers and gifting customs. The premium tier is seeing growth via gold-plated variants, while ethical sourcing concerns fuel interest in lab-created stones. To enhance the online purchasing experience and counter the threat of low-quality imitations, luxury retailers are successfully deploying patented virtual-try-on technologies. 

About Mordor Intelligence 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, and logistics.

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