HoulihanLokeyLuxury GoodsJune 2025Market Update
Some people think luxuryis the opposite of povertylIt is not. It is the oppositeof vulgarity.CocoChanelHoulihanLokey
Table of Contents01020304Overall MarketEvolvingConsumerM&AMarket andAppendixContextDemands in LuxuryRelevantValuationConsiderations
CARDS01Overall Market Context
01OverallMarketContextUpby+4%,theglobalGlobal Luxurv Market Snapshotluxurygoads sectorhasgrown fasterthantheeconomy(2019-2024)Expected togrowatLuxury WatchesLuxury Fashion& Jewelleryappraximately4%reachingmorethan6526Markete144.6B5-yrCAGR+4.6%billion in2029Sizeofindustrygrowthwas~80%drivenbypriceincreases31%ratherthanvolumeincreases33%2024LuxuryEyewear435B+4.0%CAGRIDLuxuryindustryeconomic2.6xMakel(27.4BSyrCAGR+2.1%profitneary tripled6%15%LuxuryLeatherbetween2019and2024Goads15%MarketC66.4B5-yrCAGR+5.9%Luxury CosmeticsSizeGenZcouldaccountfor&Fragrancesnearly athirdofluxurypurchasesby2030MarketSeeC63.1BAlmost40%fromU.S.andChinawy"MckinarymponHoulihanLokey
01OverallMarketContextLona-Term Sector PerformanceSnapshotSector has a historical track record of strongGlobalLuxurvMarketSizefinEB*After aslowdown in2020 and 2021 dueto+3.9%CAGRCOVID-19,all segments526508488recovered topre-COVID-19+5.4%CAGR469435151levelsin20224202838527276825*Post-COVID-19, theluxury633235979318marketcontinuedtothrive,296合62319despitebroadermarketSa491505uncertainty137131119Strong growthfromleathergoods as well asjewellery,115and watches as consumers10103prioritised investment21820920020272022023204205E2Q627E2Q2座2029categoriesoury Watches &ewolletyLuvryLeatherGoodsLunaryCosmwics&FagancesLunaryEyowaarSavceShutkteLunuryGoadsreportHoulihanLokey6
01OverallMarketContextMarket Spotliaht-U.S. andChinaTheUS. and China are still the world's largest markets despite recent challengesLuxurymarketsharebytopcounties。While the U.S. luxury goodsmaiket has been+Naw theworkd's second-largestrmarket forluxuy godsdeclenting and not themindiver ofgowthinChina drove lusury growth for much of thepast decadethepastfewyesn,itstlepesentsthe largest mandket95955%55%forluxury goods globallydlas consumers have ben thereal force baelind thegrowth.The strona US.demand during COMID-19wasmainlyaRecently. the Chinese luxury market has faced a moredriven by rising asset prices (stock market, housingchallenging anvironment due to broader economric8%byCOVID-19 restictions)15%16%Going forward, higher consumer confidence levelsStructural divers behind Chinese luxurymarket21%20%should lead to single-digit growth in the US.Overallgrowing weslth and expanding2018middle classChinaMJapanMOhersCustomersincreasingly shiffing their attenfionowards"home-grown"localcompanicsDespite recent economic turbulence, itCornsuners(espeilymioale-dasgtocusingis anticipated that Chinese luxuryon less frequent, but higher-end purchasesmarketgrowthwilloutpace US.marketSodil tratifiation fLuetstatus-conxiousgrowthbetweennow and2028buyers'desieforstatussyrmbolsrdevant; thus resale valuesare incresinglyimportantHoulihanLokey
01OverallMarketContextMarket Spotlight-Middle East and IndialThe Middle East and India are emerging as dominantmarkets in th...
