Americans who bought premium or luxury items 201, by income | Statista (2024)

FAQs

How much do Americans spend on luxury goods? ›

Luxury buyers are much more likely to be 25-44 than the general population. More than 40% of luxury buyers spent $1,000+ on luxury goods last year. Who's going big on luxury? The largest segment of luxury buyers, Americans aged 25-44, are more likely to report spending between $1,000+ on luxury goods.

These luxury consumers, who are the most likely to be viewed as conspicuous consumers, have the following profile: With an average annual income of $1.3 million, they earn about 15% of the total income earned by all American households. They have a minimum net worth of $7.9 million.

Millennials were the leading customer groups of personal luxury goods, accounting for almost half of all luxury goods spending worldwide. Born between 1961 and 1996, Millennials, or Gen Y, also represents the second-largest group with the highest disposable income in the United States.

In 2024, the revenue in the Luxury Goods market in the United States amounts to US$77.28bn. It is projected that the market will experience an annual growth rate of 1.90% (CAGR 2024-2028). The largest segment in this market is Luxury Fashion, with a market volume of US$27.67bn in 2024.

Luxury spending in South Korea has overtaken China and the US and this consumer is already a major contributor to the revenue of brands such as Prada, Bottega Veneta, Moncler and Burberry. It was a South Korean company, Coupang, known as the Amazon of Asia, that acquired Farfetch.

As consumers, we often make purchases that give us the sense of being unique and that help us to craft our own identity. Luxury purchases fit with people's sense of themselves as being distinguished, climbing the social ladder, and rising above the masses.

Luxury Salary. $200,000 is the 25th percentile. Salaries below this are outliers. $300,000 is the 75th percentile.

Upper-income consumers are those with an annual household income above $100,000.

How much money do you need to live a luxurious life in the USA? Maintaining a lavish lifestyle in the United States may entail earning anywhere from $500k to $1 million per year, according to recommendations from wealthy individuals.

LVMH (Louis Vuitton Moet Hennessy) was the most valuable luxury brand in the world, with a brand value of about 124.8 billion U.S. dollars in 2023. The LVMH Group's total revenue for the 2023 fiscal year was about 86 billion euros.

What company owns most luxury brands? ›

Recent News. LVMH, multinational conglomerate headquartered in Paris that is the largest luxury goods group in the world. LVMH owns 75 luxury brands, including Louis Vuitton, Christian Dior, and Tiffany & Co.

With over $17 billion in brand value as of 2022 and revenues exceeding $15 billion annually, Louis Vuitton sits atop the global luxury industry. It leads rivals in operating profit margins as well thanks to LVMH's focus on controlling distribution through directly owned stores.

These kinds of goods are the objects of a socio-economic phenomenon called conspicuous consumption and commonly include luxury cars, watches, jewelry, designer clothing, yachts, private jets, corporate helicopters as well as large residences, urban mansions, and country houses.

The target audience for luxury brands includes individuals who have a passion for high-end brands. They appreciate quality and craftsmanship and are prepared to invest in luxury goods and experiences. These consumers are drawn to exclusivity, sophistication, and prestige in the products and services they indulge in.

In the Consumer Market Outlook, Luxury Goods encompass highly exclusive personal items that convey the taste and status of their owners. This includes Apparel, Footwear and Leather Accessories, Eyewear, as well as Watches and Jewelry, and Cosmetics.

The Bottom Line

In 2022, Americans spent over one-third of their income on housing. An additional third of income was spent on food and transportation. Changes in consumer spending reflect economic conditions and are monitored by the Bureau of Labor Statistics and the Bureau of Economic Analysis.

Revenue in the Luxury Goods Market is projected to reach US$58.39bn in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.75%, resulting in a projected market volume of US$92.98bn by 2029.