France Luxury Goods Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

France Luxury Goods Market Trends and Insights

Consumer Emphasis on Sustainability

French luxury consumers, increasingly prioritizing sustainability, are reshaping product development strategies across the sector. This shift is largely driven by heightened awareness of climate change and its real-world consequences. As a result, these consumers are on the lookout for brands that demonstrate transparent, measurable, and impactful environmental practices. For example, Kering has emerged as a leader in environmental, social, and governance (ESG) initiatives, considering its adoption of science-based targets. The company states that these efforts have led to a 40% reduction in its environmental footprint since 2020. By weaving sustainability into its core strategy, Kering not only underscores its dedication to environmental stewardship but also bolsters its competitive edge in a market that's becoming increasingly regulated and focused on sustainability. Similarly, LVMH launched its “LIFE 360” program, ensuring biodiversity preservation, enhancing supply chain traceability, and achieving carbon neutrality by 2030. This shift is reshaping the French luxury goods market, compelling brands to integrate sustainability into their core strategies to remain competitive and relevant.

Influence of Social Media and Celebrity Endorsement

Luxury brands are pivoting towards genuine, influencer-led tactics, aiming to resonate with consumers who are both digitally savvy and culturally aware. In 2025, the Met Gala set a new standard for Media Impact Value (MIV) within the luxury sector. French luxury brands led the market, with Louis Vuitton generating USD 55.2 million in MIV through strategic celebrity collaborations. This reflects a significant transformation in luxury marketing, shifting from traditional advertising to influencer-driven strategies. The industry is now embracing "Influence 3.0," a model that emphasizes authentic content creators who establish stronger connections with niche audiences, moving beyond conventional celebrity endorsements. For instance, Morgan Mesple, an influencer with 93,000 followers, is in partnership with high-profile brands like IWC Schaffhausen by focusing on quality engagement rather than follower count. This approach has proven particularly effective with Gen Z consumers, who prioritize authenticity and creative storytelling over traditional status symbols. Consequently, established French luxury brands are adapting their digital strategies to deliver more personalized and culturally relevant content.

High Demand from Inbound Tourist

France continues to reinforce its status as the world's leading tourist destination, a position that has significantly driven the growth of the luxury goods market. The 2024 Olympic Games acted as a major catalyst for tourism, with international visitors playing a critical role in boosting luxury retail sales. Luxury brands, renowned for their country-of-origin appeal, maintain a strong presence across both online and offline channels in France. As one of Europe’s most visited destinations, France attracts a substantial number of Asian tourists, particularly for fashion and leisure activities. In 2024, France attracted 100 million international visitors, generating an international revenue of EUR 71 billion ^{[1]Ministry of Economy and Finance, France, "2024, a Record Year for International Tourism in France", www.economie.gouv.fr} . In response to this heightened demand, luxury retailers have implemented strategic expansion plans to capitalize on the growing market. For instance, Phoebe Philo expanded into the French luxury retail market by opening her first physical store in Galeries Lafayette Haussmann, Paris, in February 2025. This marks a significant step for the brand, which had previously only been available through online sales and limited in-person events.

Product Innovation in Raw Material and Design

French luxury houses are leading the charge in material innovation, with circular economy principles serving as a cornerstone for their product development strategies. Prominent designers, such as Stella McCartney, are spearheading this initiative by integrating recycled materials into their designs without compromising on quality or aesthetic appeal. In a similar line, LVMH has reported that 31% of its materials are now sourced through recycling initiatives. Additionally, the company has achieved a significant 55% reduction in greenhouse gas emissions, reflecting its proactive approach to meeting evolving consumer preferences and adhering to stringent regulatory standards. Beyond material innovation, French luxury brands are redefining product design by incorporating advanced technologies. The introduction of digital product passports is enhancing transparency and ensuring robust authentication processes, thereby reinforcing consumer trust and elevating the overall luxury experience. For instance, in February 2025, Victoria's Secret & Co. introduced its Digital Product Passport (DPP), enhancing product transparency in the luxury lingerie market. 

Availability of Counterfeit Products

The surge in counterfeiting poses a significant threat to the luxury market. French customs seized more than 20 million counterfeit items in 2023, representing a twofold increase from 2022, with luxury goods being the primary target ^{[2]The Manufacturers' Union Museum, “Annual customs report 2023”, musee-contrefacon.com}. The rise of e-commerce has intensified the problem, with counterfeit networks increasingly turning to online platforms for their distribution. The widespread availability of counterfeit products acts as a significant restraint on the market, as it undermines the exclusivity and perceived value of genuine luxury items. Counterfeit goods often attract price-sensitive consumers, diverting demand away from authentic luxury products and impacting the revenue streams of legitimate brands. Additionally, the presence of counterfeit items in the market dilutes brand equity and creates challenges in maintaining consumer loyalty. In response to this escalating challenge, the French government rolled out the 2024–2026 National Anti-Counterfeiting Plan, bolstering enforcement ahead of the 2024 Olympics. Beyond mere economics, counterfeits tarnish brand reputation and diminish consumer trust. In a bid to safeguard their intellectual property, luxury brands are turning to cutting-edge authentication technologies, such as RFID (Radio-Frequency Identification) and NFC (Near Field Communication).

Lesser Demand from Price-Sensitive Consumers

Luxury fashion brands are witnessing a notable drop in consumer interest, especially among budget-conscious shoppers. These shoppers are now gravitating towards other choices, with the second-hand luxury market proving to be a strong contender. In France, a growing number of consumers are choosing pre-owned clothing and accessories, even high-end luxury items. Economic pressures and the increasing availability of luxury brands through alternative retail avenues largely fuel this trend. Digital platforms and resale marketplaces, in particular, provide a more affordable route for consumers to obtain premium products. The declining demand from price-sensitive consumers poses a significant restraint for the luxury goods market in France. As these consumers prioritize affordability, their shift toward second-hand luxury items and alternative retail channels continues to challenge the traditional luxury market. Additionally, the perception of better value for money in the second-hand market, coupled with the increasing focus on sustainability, further accelerates this shift. This trend underscores the need for luxury brands to adapt their strategies, such as offering entry-level products or enhancing their presence in the resale market, to retain and attract this segment of the market.

Segment Analysis

By Product Type: Clothing and Apparel Leads Market, While Leather Goods Shows Rapid Growth

Clothing and apparel maintain the largest market share at 42.78% in 2024, benefiting from France's fashion heritage and design leadership. However, leather goods are emerging as the fastest-growing segment with a projected CAGR of 4.87% for the period 2025-2030, outpacing the overall market growth. This acceleration is driven by strategic innovations in sustainable leather and heightened demand for investment pieces with enduring value. Hermès reported 10% organic growth in leather goods and saddlery in Q1 2025, citing new workshops in Louviers and Montereau that cut lead times from 18 to 12 months.

The footwear segment demonstrates moderate growth, with luxury sneakers effectively bridging the gap between casual and formal wear categories. The eyewear segment benefits significantly from strategic licensing agreements with prominent fashion houses, enhancing its market presence. Meanwhile, beauty and personal care products continue to serve as accessible entry points for consumers seeking to engage with luxury brands. The watches and jewelry segment maintains a stable performance, driven by consistent demand and its association with prestige and craftsmanship.

Note: Segment shares of all individual segments will be available upon report purchase

By End User: Women's Segment Dominates With Men's Segment Driving the Momentum

Women constitute the largest consumer segment with 57.35% market share in 2024, reflecting their historically stronger engagement with luxury fashion and accessories. However, the men's segment is expanding rapidly, with a projected CAGR of 5.13% during 2025-2030. This growth is driven by changing gender norms and an increasing range of product offerings targeting male consumers. For instance, Pharrell Williams’ debut as Louis Vuitton’s Men’s Creative Director for the Spring-Summer 2024 menswear collection, unveiled on June 20, 2023, at Paris Fashion Week, garnered over one billion views, boosted by celebrity appearances and extensive media coverage.

Men focus on exclusivity and status in luxury purchases, while women value sophistication. These gender-specific preferences are influencing marketing strategies within the French luxury market. The unisex category is gaining traction, particularly among younger consumers who prefer gender-neutral designs and versatile products. Capsule assortments labeled “for all” now constitute expanding shares across the market. This trend aligns with broader societal shifts toward gender inclusivity, offering brands an opportunity to diversify their customer base. Retailers adjust floor plans to integrate men’s and women’s spaces, boosting cross-category sales.

By Distribution Channel: Single-Brand Stores Lead Market Share as E-commerce Growth Continues

Single-brand stores maintain the largest market share at 37.85% in 2024, offering controlled brand experiences and direct consumer relationships. However, online stores are growing most rapidly at 5.53% CAGR through 2030, reflecting the sector's digital transformation. This shift in channels mirrors broader retail trends, a change hastened by the pandemic. Consumers are now more at ease buying luxury goods online, sidestepping the need for in-store testing. This online surge is especially beneficial for brands as it allows them to connect with specific consumer segments without the need for a physical retail presence.

The penetration of e-commerce in the luxury market has accelerated, with digital platforms particularly appealing to millennials and Gen Z, who increasingly prefer purchasing high-value products online. For instance, as of January 2024, the fashion category accounted for 53% of online purchases in France, according to the Federation of E-commerce and Distance Selling ^{[3]Federation of E-commerce and Distance Selling (Fevad), “Chiffres Clés E-Commerce”, fecad.com}. Social media and influencer marketing have expanded the visibility and aspirational appeal of luxury brands to a broader audience. Multi-brand department stores remain key for discovery, especially among tourists who bundle purchases with tax-refund services. The France luxury goods market size attached to omnichannel services grows because clients now expect to reserve products online, try them offline and finalize payment on either channel.

Note: Segment shares of all individual segments will be available upon report purchase

Geography Analysis

Paris and the broader Île-de-France region deliver the bulk of domestic sales. Avenue Montaigne witnesses significant footfall, driven by cosmetic and jewelry pop-ups aligned with major fashion shows. Cannes, Saint-Tropez, and Nice are some of the seasonal places attracting high-spending visitors, encouraged by experiential events synchronized with yacht and film festivals. LVMH’s villa acquisition in Cannes positions the group to stage intimate trunk shows that convert into bespoke orders. Together, these hubs anchor France's luxury goods market share, counterbalancing slower growth in smaller regional cities.

Normandy and Brittany contribute artisan-focused tourism experiences, such as saddle-making workshops at Hermès' century-old facilities, though their revenue share remains limited. Cross-border shoppers from Belgium, Switzerland, and Italy significantly impact store revenues in eastern departments, supported by advantageous VAT refund policies. Furthermore, international digital orders fulfilled through French inventory add another dimension to the geographic distribution of the luxury goods market. Logistics centers in Gennevilliers and Roissy enhance operational efficiency by automating customs processes for seamless dispatch.

Further, infrastructure enhancements linked to the Grand Paris Express lines are expected to expand the reach of luxury retail beyond Paris' historic center. Additionally, the increasing adoption of e-commerce platforms has expanded the reach of luxury goods to remote areas, while urban centers remain the primary drivers of online sales due to their tech-savvy populations. France's luxury goods market relies on a balanced performance across established and emerging regions to sustain its global market leadership.