New Delhi, October 22 (IANS). According to a latest report, India’s luxury goods market is expected to grow by 10 percent to reach $12.1 billion by 2025, strengthening India’s position as a strong player in the global luxury market.
According to data analytics company Euromonitor International, the luxury retail landscape is being reimagined, where brands are moving beyond the transactional realm to providing curated lifestyle experiences.
The leading countries in the growth of luxury goods market are South Africa with 15 percent share, India with 10 percent and UAE with 9 percent share.
The report said India is expected to achieve a CAGR growth of 74 percent over the forecast period, reflecting its growing importance in the luxury ecosystem.
A major factor contributing to India’s growth is the increasing number of wealthy individuals.
Price growth was highest in premium and luxury car sales driven by urbanisation, affluent consumers, attractive financing and new electric models.
Physical luxury stores will account for 81 percent of personal luxury goods sales in 2025, reflecting the strength of the sector and the continued importance of personal connection.
The global luxury market, valued at $1.5 trillion by 2025, remains strong despite continued macroeconomic and geopolitical disruptions.
“Amid market uncertainty, the industry is undergoing a profound transformation, moving from a product-centric model to experience-driven engagement,” said Fleur Roberts, Global Insight Manager for Luxury Goods at Euromonitor International.
Physical luxury stores are becoming an expression of identity through exclusivity and hospitality. These environments reflect high-level hospitality.
With the rise of e-commerce, luxury brands are reimagining stores as cultural destinations.
Luxury spending has shifted away from personal items and toward experience-based categories, reflecting deeper shifts in consumer values.
According to the report, experiential luxury has demonstrated strength, with the luxury travel and hospitality market expected to grow 8 percent to $103 billion in 2025.
–IANS
SKT