Core personal spending within the luxury sector fell by 23%1 in 2020, losing nearly $200 billion in the process. However, with the huge up-tick in digital luxury spending in 2020 and 2021, and the rapid re-opening of China and the east, the sector has rebounded and is now pegged for years of growth.
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Consumer spending in the luxury market grew to $309.6 billion in 2021, with the sector predicted to turn over $382.6 billion a year by 2025.
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This is driven in large part by an enormous shift of commercial activity from West to East and from older buyers to younger buyers, with China and the wider Asian commercial market accounting for most of this growth especially within the Millennial age bracket, who are coming of age and dictating global, and ethical, luxury spending.
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The demographic shift in purchasing power is part of the reason why brands must consider environmental and social equity as central to their company purpose from here on - younger buyers expect brands to be more conscious of their supply chains, to buy from ethical sources, to curate a culture of circular economic practice where possible, and to ally themselves with influencers, marketing channels, magazines, periodicals, shops and e-commerce sites that share their same ethical values.

ESG isn’t just a marketing tactic - it’s absolutely essential to your company's future.