The U.S. luxury goods market is poised for steady expansion over the next decade, with new data pointing to sustained demand across fashion, beauty, jewelry, and accessories. According to the latest United States Luxury Goods Market Report 2025–2033 from Research and Markets, the market is expected to grow from US$115.22 billion in 2024 to US$196.16 billion by 2033, reflecting a CAGR of about 6.09% between 2025 and 2033.
Growth Outlook to 2033
The report positions the United States as one of the world’s most resilient luxury markets, with high-income consumers continuing to invest in status-led and quality-focused goods despite macroeconomic headwinds. Segments including watches and jewelry, perfumes and cosmetics, clothing, and bags/purses are all forecast to contribute to expansion, supported by both offline and online retail channels. As omnichannel models mature, brands are refining how they blend boutique experiences with digital convenience for women and men in key states such as California, New York, Texas, and Florida.
What’s Powering U.S. Luxury Spend
Spending momentum is being driven by rising disposable incomes, strong millennial and Gen Z engagement, and higher levels of brand awareness among younger cohorts. Social media, celebrity dressing, and influencer partnerships continue to accelerate discovery and desire, especially in categories like handbags, sneakers, and beauty.
The report also points to tourism flows and experiential retail—think flagship stores, pop-ups, and VIP services—as important levers for capturing both domestic and international luxury shoppers.
Sustainability and Innovation Priorities
Sustainability has shifted from a talking point to a clear expectation in the U.S. luxury space. Brands are investing in recycled materials, more responsible sourcing, and transparent supply chains to align with values-led consumers who increasingly factor ethics into purchasing decisions.
Product innovation, particularly around eco-conscious materials and multifunctional formulas in categories like skincare and cosmetics, is emerging as a key differentiator as shoppers seek both performance and purpose from luxury products.
Key Risks: Counterfeits and Price Pressure
Despite its strong outlook, the sector faces ongoing pressure from counterfeits and gray-market activity, which can erode brand equity and confuse consumers around pricing and authenticity. As replicas and unauthorized resellers circulate more widely online, companies are responding with stricter distribution controls, enhanced authentication technologies, and client education.
The report also highlights growing price sensitivity, noting that after several years of price hikes, some consumers are delaying purchases or trading down, pushing brands to defend perceived value while maintaining exclusivity.
Power Players Shaping the Market
The study profiles major global groups and maisons that will shape the next phase of U.S. luxury growth, including Kering S.A., Ralph Lauren Corporation, Valentino S.p.A., Gianni Versace S.r.l., Hermès International S.A., Compagnie Financière Richemont S.A., Giorgio Armani S.p.A., LVMH Moët Hennessy Louis Vuitton, Prada S.p.A., and The Swatch Group Ltd.
Each company is examined through recent strategies, financial performance, and SWOT analysis, offering a detailed view of how leading players are positioning themselves across product categories, channels, and U.S. geographies for the 2025–2033 window.
