Luxury goods market growth fueled by middle class, says Euromonitor
Group responsible for 90% of global luxury goods spending
Growth in the luxury goods market is being fueled by an expanding global middle class, which is forming an increasingly sophisticated consumer base, according to research analyst Euromonitor.
The middle class in 85 major economies, which together make up over 90% of total global luxury goods spending, totalled 444 million households by the end of 2011, says the firm. This represents, it says, an increase of 24.2% over 2006 figures - a trend which is set to continue.
“Middle class expansion is particularly robust in emerging economies on the back of rising incomes,” says Euromonitor. “Middle class consumers form an increasingly sophisticated consumer base with rising spending power, driving growth in many luxury goods categories.”
Among the firm’s findings are that the key target age group for luxury goods is 25-29 year olds, closely followed by 30-34 year olds and 20-24 year olds.
Super premium beauty and personal care products are the joint level best performing category (tying with fine wines and spirits), with a predicted compound annual growth of 66% by 2017. Luxury accessories (41%) and luxury jewelry and timepieces (39%) follow on behind, with design apparel (34%), luxury writing instruments and luxury travel goods bringing up the rear.
