What: Every year, Bain & Altagamma provide a synthetic perception of the luxury market evolution.

Why it is important: This tool is key to having a macro-understanding of what is going on.

The 22nd edition of the Bain-Altagamma Luxury Study, focusing on the luxury goods market in 2023, provides several key insights:

1. Market Overview: The report presents an analysis of the luxury goods market's performance during the first three quarters of 2023, along with projections for the final quarter and beyond. It includes expectations for market evolution and Bain's recommendations for future growth strategies.

1. Record Growth: 2023 witnessed record growth in the luxury markets, with a significant shift from product consumption to experience engagement. The growth rates were 8-10% compared to 2022 and 18-20% compared to 2019, aligning with the growth trends of 2021-2022.

1. Segment-Specific Trends:

• Luxury Toys: These continued robust growth due to the resilience of high-net-worth individuals and easing supply chain constraints.

• Fine Art: The market saw subdued growth with a dichotomy between auction houses and dealerships. Auctions faced downturns, while dealerships expanded, with an escalating shift in the customer base towards Gen Y and female clients.

• Fine Dining and Spirits: There was a resurgence in social interactions driving growth in this sector, with strong growth in fine dining and varied performance in spirits.

• Luxury Hospitality and Cruises: These thrived with a surge in demand for unique, personalized, and transformative experiences.

1. Consumer Trends: There was a notable rebalancing in discretionary spending, with a tilt towards lived-in experiences over products. Experience-based goods and luxury experiences outpaced the growth of traditional luxury products.

1. Regional Dynamics: The report highlights the balanced growth of luxury markets across regions, with Asia as a significant growth engine. Specific trends in personal luxury goods, fine dining, and hospitality were observed in various regions.

1. Personal Luxury Goods Market: This market continued to grow amid uncertainties in 2023, with a clear upward trajectory projected through to 2030.

1. Generational Influence: Multigenerational complexity is unfolding as a key influencer for future market evolution. Brands are adapting to serve different generational needs, with Gen X and Y representing the bulk of luxury purchases and Gen Z emerging as a significant influence on cultural and social values.

1. Sustainability Focus: Luxury brands are increasingly committing to decarbonization goals, with a need to shift focus from corporate to business unit levels, aligning incentives with overall targets.

1. Market Dynamics: There's a continued elevation in price across categories, with a shift towards high-end items and a quest for iconic and investment pieces. This shift is partly driven by the strong performance of the Asian market.

This study provides a comprehensive overview of the luxury goods market in 2023, highlighting growth trends, segment-specific dynamics, consumer preferences, regional market differences, generational influences, sustainability commitments, and overall market dynamics.

Bain and Altagamma release their 2023 report on Luxury