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

United States Luxury Goods Market Trends and Insights

Consumer Emphasis on Sustainability

Environmental responsibility has become a fundamental business requirement in the US luxury market. Luxury brands are adopting circular economy practices, with companies like Stella McCartney incorporating deadstock fabrics and recycled materials in their high-quality collections to reduce environmental impact. This approach demonstrates the industry's commitment to sustainable practices while maintaining premium quality standards. Moreover, a Stifel survey from October 2023 indicated that 22% of Generation Z and 20% of Millennial consumers in the United States make purchases exclusively from brands demonstrating sustainability practices or value alignment ^{[1]Source: Stifel Financial Corp., “Sustainability Survey Report of Key Findings December 2023”, stifel.com}. This purchasing pattern has impacted the U.S. luxury goods market, leading luxury brands to allocate resources toward ethical sourcing, environmentally friendly materials, and supply chain transparency to maintain their market position. For instance, in December 2024, Rolex introduced sustainable packaging for its watches, utilizing plywood and recycled cardboard materials, demonstrating how luxury brands can maintain their premium positioning while embracing environmental stewardship.

Influence of Social Media and Celebrity Endorsement

Social media has transformed how luxury brands interact with consumers, making luxury more accessible to wider audiences. The digital landscape has enabled brands to reach and engage with consumers across different demographics and geographic locations, fundamentally changing traditional luxury marketing approaches. Ray-Ban's appointment of ASAP Rocky as its first global creative director in February 2025 demonstrates how luxury brands now prioritize cultural figures over traditional designers in creative roles. This shift represents a significant departure from conventional luxury brand strategies, where design expertise was the primary consideration for creative leadership positions. Research shows that while influencers may appear more relatable to consumers, this familiarity does not automatically increase engagement with luxury brands, as the approachable nature of influencers can conflict with luxury's aspirational qualities. The complexity of this relationship highlights the challenges luxury brands face in maintaining their exclusive appeal while adapting to modern digital marketing requirements.

Increasing Strategic Investment and Initiatives Propelling the Market

The luxury market is experiencing increased investment in digital transformation and omnichannel capabilities, with companies allocating substantial resources to enhance their online presence and customer engagement strategies. Through tokenization methods, digital platforms are expanding access to luxury assets, including art, vintage watches, and real estate, which provide new investment options for high-net-worth individuals. This digital evolution in the luxury sector enables fractional ownership opportunities, reduces entry barriers for potential investors, and creates a more accessible marketplace for premium assets. The integration of blockchain technology and smart contracts further enhances transparency and security in luxury asset transactions, making these investments more appealing to a broader range of affluent consumers

Product Innovation in Terms of Raw Material and Design

Product innovation serves as a key differentiator in the US luxury market, as brands utilize advanced materials and design techniques to support premium pricing and appeal to environmentally conscious consumers. Luxury fashion brands are incorporating eco-friendly materials, including mycelium-based leather and organic cotton. This shift toward sustainable materials reflects a broader industry transformation, where environmental responsibility meets luxury craftsmanship. For instance, in October 2023, sustainable luxury footwear brand Koio launched 99% biodegradable shoes. Koio offers a growing collection of carbon-neutral shoes, which are made using leathers from regenerative farms in the Swiss Alps. Moreover, the trend extends beyond materials to product functionality, particularly in the beauty segment, where multi-purpose products are gaining traction as consumers seek value amid increasing living costs. Beauty brands are developing innovative formulations that combine skincare, makeup, and protection benefits in single products. This approach resonates with consumers looking to streamline their routines while maintaining luxury experiences. The convergence of sustainability and functionality in luxury products demonstrates the market's evolution in meeting changing consumer demands while maintaining premium positioning.

Availability of Counterfeit Products

Counterfeiting continues to pose a significant threat to the US luxury goods market, with China remaining the leading source of counterfeit goods, accounting for 84% of the value and 90% of the quantity of counterfeit goods seized by U.S. Customs in 2023, according to the Office of the United States Trade Representative. The influx of counterfeit products has significantly impacted brand value and consumer trust in the luxury sector. Major luxury conglomerates have responded by strengthening their anti-counterfeiting measures. Companies such as LVMH and Kering implemented artificial intelligence and computer vision technologies to verify product authenticity and safeguard their intellectual property. These technological solutions include blockchain-based tracking systems, digital authentication tags, and machine learning algorithms that can identify fake products through image recognition. Additionally, luxury brands have increased collaboration with law enforcement agencies and customs officials to enhance the detection and seizure of counterfeit goods at ports of entry.

Lesser Demand from Price-Sensitive Consumers

The United States luxury market is experiencing heightened price sensitivity as consumers evaluate the value of luxury items more critically after sustained price increases. This shift in consumer behavior reflects broader economic concerns and changing perceptions of luxury value. Aspirational luxury consumers, who are more susceptible to economic fluctuations, are shifting toward lower-priced alternatives or postponing their purchases. This behavioral change has implications for luxury brands' sales volumes and market positioning, particularly in segments where price elasticity is more pronounced. The trend also indicates a potential restructuring of the luxury market's consumer base, with some traditional buyers reconsidering their purchasing patterns.

Segment Analysis

By Product Type: Leather Goods Defying Market Slowdown

Clothing and apparel hold a dominant 32.25% share of the US luxury goods market in 2024, supported by strong brand recognition and consumer loyalty. This segment's success is attributed to luxury fashion houses' ability to maintain exclusivity while adapting to changing consumer preferences and digital retail trends. The leather goods segment is expected to grow at a CAGR of 2.73% during 2025-2030, exceeding the market's overall growth rate. This growth stems from consumers increasingly viewing leather products as long-term investments rather than fashion items, particularly in categories such as handbags, wallets, and accessories. In March 2025, Stony Clover Lane expanded into this segment by introducing its first leather collection, including clothes and bags, demonstrating the market's attractiveness for new luxury entrants. 

Moreover, the jewelry segment continues to demonstrate stable performance, driven by traditional purchases for special occasions and growing interest in investment pieces. The watches category experiences challenges due to smartwatch competition and shifting preferences among younger consumers, prompting traditional watchmakers to innovate with hybrid offerings. Also, footwear and eyewear segments, despite their smaller market shares, are experiencing growth as consumers seek complete luxury wardrobes, prompting brands to diversify their product offerings and develop specialized collections to capture specific consumer segments.

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

By End User: Men Driving Growth in Traditionally Female-Dominated Market

Women continue to dominate the US luxury goods market with a substantial 54.88% share in 2024, reflecting their historically stronger engagement with fashion and personal care categories. Female consumers demonstrate strong purchasing preferences for premium experiences, brand authenticity, and high-quality materials, generating significant demand in designer handbags, skincare, and fragrances. Companies such as Chanel and Estée Lauder have implemented exclusive collections and loyalty programs targeting female consumers, increasing their market share in the luxury segment.

However, the men's segment is exhibiting the highest growth potential with a projected CAGR of 3.03% from 2025-2030, signaling a significant shift in gender dynamics within the luxury market. The growth in men's luxury consumption is driven by changing social norms, increased interest in personal appearance, and the expansion of luxury offerings specifically tailored to male consumers. The market players are launching new products to cater to this trend. For instance, in September 2024, Laurence Graff Signature Jewelry launched a collection of unisex diamond jewelry in the United States. The collection includes a wide range of jewelry pieces like rings, necklaces, and others. 

By Distribution Channel: Digital Transformation Reshaping Retail Landscape

Single-brand stores hold a dominant 41.47% share in the US luxury goods market in 2024, providing brands with complete control over customer experience and brand presentation. Online stores are projected to grow at a CAGR of 3.56% from 2025-2030, marking the fastest growth among distribution channels. According to the National Telecommunications and Information Administration, 83% of people aged 3 and older in the U.S. used the internet in 2023, compared to 80% in 2021 ^{[2]Source: National Telecommunications and Information Administration, “New NTIA Data Show 13 Million More Internet Users in the U.S. in 2023 than 2021”, ntia.gov}. The expansion in internet adoption is driving the digital transformation of the U.S. luxury goods retail market, prompting companies to enhance their online operations. Luxury retailers are implementing digital showrooms and customized e-commerce platforms to increase customer engagement and generate premium sales through online channels. 

Multi-brand stores are evolving by strengthening their product curation and service offerings. Companies like Nordstrom demonstrate the effectiveness of the multi-brand model in luxury retail. The convergence of physical and digital channels enables enhanced customer engagement and data collection, allowing luxury brands to deliver personalized experiences across all customer touchpoints. For instance, in April 2025, Amazon Fashion unveiled a new luxury storefront, "Luxury Stores at Amazon," in collaboration with Saks Fifth Avenue. Curated by Saks, the platform showcases a range of high-end offerings, from ready-to-wear apparel for both men and women to beauty products, shoes, handbags, and accessories.

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

Geography Analysis

The United States luxury goods market shows distinct regional patterns, with coastal metropolitan areas, particularly New York and Los Angeles, dominating luxury consumption. These regions' dominance stems from their high concentration of high-net-worth individuals and their appeal to international tourists. For instance, the International Trade Administration reported that New York City recorded the highest number of overseas visitors in 2024, with 6.11 million visitors, followed by Miami with 4.76 million, and Los Angeles with 3.36 million ^{[3]Source: International Trade Administration, “December And Annual 2024 Total International Travel Volume”, trade.gov}. The market is expanding into Sunbelt states, notably Texas and Florida, where domestic migration and wealth accumulation are creating new luxury consumption centers. This shift is particularly evident in cities like Miami, Dallas, and Houston, where luxury retail developments and high-end boutiques are increasingly prevalent.

Moreover, the West Coast, particularly Los Angeles and San Francisco, is a significant market for luxury goods due to its entertainment and technology industries. The region's consumers demonstrate strong demand for designer fashion, luxury accessories, and premium experiences. Beverly Hills' Rodeo Drive remains a prominent luxury retail destination, attracting domestic and international shoppers. The region's connection to Hollywood and celebrity culture influences consumer preferences, with social media and celebrity endorsements impacting purchasing decisions. West Coast consumers also prioritize sustainability in their luxury purchases.

Macroeconomic factors, including potential tariff impacts on pricing, influence market dynamics. Trade tensions and supply chain disruptions have prompted luxury brands to reassess their pricing strategies and distribution networks. The United States continues to be a vital market for global luxury brands, with LVMH, Kering, and Richemont increasing their focus on American consumers amid challenges in other markets. These companies are expanding their retail footprint, enhancing digital capabilities, and developing targeted marketing campaigns for the American audience. For instance, in May 2024, Cartier opened a new store at South Coast. The store has an area of 8,000 sq. ft. This strategic emphasis highlights the US market's fundamental role in driving luxury growth, despite periodic market variations.