Demand for personal luxury goods in the U.S. and China is set for resurgence next year, lifting growth in the $285 billion (EUR 250 billion) market that hit a trough in 2016, according to a Reuters report that cited Bain & Co.
Luxury sales will grow about 1 percent at constant exchange rates this year compared with a 1.5-percent increase in 2015, the news agency reported. Over the next five years, the personal luxury goods industry will grow 2 percent to 3 percent per annum, it quoted the Bain forecast as saying.
Consumers in the U.S. are adopting a wait-and-see attitude and demand is expected to increase again next year after the presidential elections, with the strength of the dollar also holding back tourist shoppers at the moment, the report said.
Predictions are pointing towards a similar trend in the diamond industry, with Russia-based VTB Capital estimating global diamond jewelry sales fell 1 percent in 2015 on lower Chinese demand and the stronger dollar. Current trends signal a recovery ahead, with demand growth expected to be 4 percent over 2016 to 2020, the bank said in an analysts’ note.
Bain is scheduled to release its latest report on the luxury goods market in the coming weeks, covering accessories, clothing, jewelry and watches, according to the news report.