US Luxury Goods Market (2018–2028)
The luxury sector currently ranks among the industries with the highest average order values, with checkouts averaging close to $150.
How is the industry performing in general? Here’s a look at the US luxury goods market and its total retail sales in recent years.
US luxury goods market: 2018–2024
According to a recent study, the US luxury goods market is set to bring in revenues totaling $77.3 billion in 2024. This marks a 2.1% annual increase, which is a quarter of the growth rate of the previous year. In 2023, the US luxury goods market grew by 8.9%, to $75.7 billion.
Experts say that these figures show that the sector has remained mostly unaffected by some of the challenges other industries have faced, such as inflation and reduced consumer expenditure.
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Aside from a 14.3% plunge in 2020, the US luxury goods market has largely expanded since 2018. That year, revenues totaled $64.3 billion and rose by 7.1% in 209, to $68.9 billion. According to analysts, the 2020 fall was a result of the COVID-19 pandemic, which caused many industries to shrink.
The luxury goods sector rebounded immediately, registering annual increases of around 8.5% the following two years as revenues returned to pre-pandemic levels.
US luxury goods market: 2025–2028 forecast
Analysts expect the luxury goods market to continue growing in the coming years but at much slower growth rates. For instance, retail sales are forecast to increase by 1.9% in 2025, to $78.8 billion, before rising 1.8% in 2026 and 2027, to $80.2 billion and $81.6 billion, respectively. By 2028, the US luxury goods market is set to be worth $83.3 billion, increasing at an annual growth rate of 2.1%.
From 2018 to 2028, sales of luxury goods are expected to rise by $19 billion. This is a 29.5% overall increase and an average annual growth rate of 2.8%.
US luxury goods market: top products and preferences
The most popular product on the US luxury goods market is currently footwear. As many as 47.3% of US adults say they have purchased footwear from a luxury brand.
This is followed by handbags and leather goods such as purses, belts, and wallets—46.2% of consumers have bought branded leather goods in the past 12 months. Cosmetics and beauty products and fragrances are also among the most popular luxury items consumers have purchased, with 45.4% of them having done so.