Australia Luxury Goods Market Size, Share Analysis and Forecast Report (2024-2032)

Australia Luxury Goods Market Trends

The Australia luxury goods market benefits from an expanding base of high-net-worth individuals (HNWIs), which drives increased demand for premium products. The country's stable economy fosters long-term growth, while rising disposable incomes enhance purchasing power, encouraging greater spending on luxury items. With high living standards and international appeal, the market attracts both wealthy locals and global tourists seeking premium experiences. These factors provide a solid foundation for luxury consumption. In March 2022, Fendi opened a new boutique in Brisbane, presenting its latest collections of luxury handbags, fashion, and accessories. The store underscores the brand’s commitment to expanding its Australian presence, offering exclusive products to affluent consumers in Queensland's capital.

The Australia luxury goods market dynamics and trends are shaped by Australian consumers' refined preference for high-quality, exclusive products, leading to growth in demand across sectors such as fashion and automobiles. Additionally, Australia’s strategic location near Asia, particularly China, provides brands with opportunities to access regional markets. The rise of e-commerce further extends the reach of luxury brands, while strong brand loyalty among Australians to established labels bolsters sales. These factors together create a dynamic environment ripe for luxury goods expansion. In July 2023, Cartier launched its "Cactus de Cartier" collection in Australia, inspired by nature's beauty and featuring bold statement pieces. The event, held at Cartier’s Melbourne boutique, highlighted the brand’s innovative designs and dedication to high-end, exclusive luxury jewellery.

Australia Luxury Goods Market Growth

Luxury is often regarded as a symbol of success and status, which is a key trend in the Australia luxury goods market, driving a cultural demand for premium products. Cities like Sydney and Melbourne act as major retail hubs, with growing luxury shopping districts that attract both local and international shoppers. Australians also view luxury goods as investments, with high-quality products typically maintaining or increasing in value. The rising interest in sustainability and bespoke, personalised offerings is further shaping demand, appealing to eco-conscious and exclusive consumers. In March 2023, Gucci launched its "Off the Grid" collection in Australia, focusing on sustainable materials such as recycled nylon and organic cotton. The collection includes bags, shoes, and apparel, catering to eco-conscious luxury consumers. Available in select stores, it underscores Gucci’s commitment to sustainability in the Australian market.

The Australia luxury goods market revenue is particularly increasing due to the presence of urban centres such as Sydney, Melbourne, and Brisbane, which are key hubs for luxury retail and lifestyle experiences. Australians have a strong trust in established luxury brands, which fosters customer loyalty and advocacy. The increasing demand for luxury experiences, such as premium travel and hospitality, complements the market for high-end goods, while the seamless integration of online and in-store shopping offers consumers added convenience. With a steadily growing affluent population, the luxury market is set for continued long-term expansion. In January 2024, Rolex introduced its new "Daytona" watch model in Australia, featuring an updated design with advanced chronograph technology. The limited-edition timepiece is available at select Australian locations, further cementing Rolex's position as a leader in luxury watches. The launch event took place at Sydney's flagship store.

Australia Luxury Goods Market Insights

• The Australian Institute of Health and Welfare reported in 2021 that there are 12.5 million males in Australia across all age groups.  
• According to the 2021 Census by the Australian Bureau of Statistics, women make up 50.7% of the population, with a median age of 39.  
• Industry reports estimate that Australia’s cosmetics market is valued at approximately USD 3.5 billion.  
• The market share in New South Wales is projected to experience substantial growth, with a CAGR of 32.6% from 2024 to 2032.  
• The luxury clothing segment is forecast to grow at a CAGR of 3.9% during the 2024-2032 period.  

Industry News

July 2024

Chanel introduced a new high jewellery collection in Australia, featuring exclusive designs inspired by nature. The collection, which includes rare gemstones and exceptional craftsmanship, is available only at selected Chanel boutiques. This launch further solidifies Chanel's commitment to offering exclusive luxury to its Australian clientele.

March 2024

Hermès broadened its presence in Australia with the opening of a new store on Melbourne’s renowned Collins Street. The new boutique offers Hermès' signature leather goods, fashion, and accessories, reinforcing the brand's strong position in the Australian luxury market. The launch event attracted both prominent local and international guests.

Australia Luxury Goods Market Drivers

Digital Transformation and E-commerce Growth

The Australia luxury goods market is witnessing substantial growth as it progressively embraces digital platforms, with e-commerce playing a key role in shaping consumer purchasing habits. High-net-worth individuals (HNWIs) and affluent shoppers are turning to online shopping for its convenience and accessibility. Luxury brands are investing in user-friendly websites, virtual experiences, and social media to engage with their customers. This enhanced digital presence allows brands to reach a wider audience, driving sales through personalised online services. The integration of augmented reality (AR) and virtual try-ons adds to the luxury shopping experience, combining convenience with the exclusive appeal of high-end goods. In January 2023, Burberry introduced a new virtual shopping service for Australian consumers, offering personalised video consultations and exclusive online collections. This move highlights the ongoing digital transformation within the Australian luxury market.

Sustainability and Ethical Consumption

Sustainability has become a key trend in the Australia luxury goods market, with affluent consumers increasingly favouring ethical and eco-friendly products. In response, brands are adopting sustainable production practices, sourcing materials responsibly, and ensuring transparency in their supply chains. Consumers are choosing items made from renewable, ethically sourced materials or those with minimal environmental impact. This trend also includes sustainable packaging and carbon-neutral shipping. Australian luxury consumers are becoming more conscientious about their purchasing choices, preferring brands that align with their values of environmental and social responsibility, thereby driving demand for eco-conscious luxury goods. In February 2024, Pandora Australia expanded its sustainable jewellery collection, featuring lab-grown diamonds and recycled silver. This move highlights the growing shift towards ethical luxury, focusing on reducing environmental impact while maintaining luxury and craftsmanship.

Opportunities in the Australia Luxury Goods Market

Personalisation and Bespoke Offerings

The growing demand for customisation and personalised experiences is driving the Australia luxury market, as consumers look to express their individuality through exclusive, tailor-made products. From personalised engravings to bespoke fashion and custom-built cars, Australian luxury consumers are increasingly attracted to unique, one-of-a-kind items that reflect their style. This trend extends beyond products to services, with brands offering personalised shopping experiences, exclusive access to collections, and curated lifestyle offerings. The desire for individuality is fueling the growth of high-end, personalised luxury goods, allowing brands to forge deeper emotional connections with their clientele. In February 2023, Cartier introduced a personalised jewellery service in its Sydney boutique, enabling customers to create one-of-a-kind, bespoke pieces. This service caters to affluent Australians seeking exclusive, tailored luxury items that showcase their unique style.

Market Restraints

The Australia luxury goods market faces several challenges that could impact growth. Economic uncertainty, driven by global downturns and inflation, may reduce consumer confidence and spending on non-essential luxury items. Rising import costs, influenced by exchange rate fluctuations and shipping fees, could increase retail prices, affecting demand. Intense competition from both local and global brands makes market penetration difficult, particularly for emerging players.

Changing consumer preferences, especially among younger Australians, prioritise sustainability and ethical production, posing a challenge for traditional luxury brands. Strict regulatory requirements, cultural sensitivities, and dependence on global supply chains can also disrupt market dynamics, while price sensitivity and technological adaptation issues further complicate the landscape for luxury retailers.

Australia Luxury Goods Industry Segmentation

“Australia Luxury Goods Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments: 

Market Breakup by Product

• Watches and Jewellery
• Perfumes and Cosmetics
• Clothing
• Bags/Purse
• Others

Market Breakup by Distribution Channel

• Offline
• Online

Market Breakup by End-User

• Men
• Women

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Luxury Goods Market Share

By Product Insights 

According to the Australia luxury goods market analysis, the industry is primarily driven by luxury watches and jewellery, with growing demand from affluent consumers who prioritise craftsmanship, exclusivity, and superior-quality materials. Watches and jewellery are expected to expand at a CAGR of 4.1% from 2024 to 2032. As disposable incomes rise, Australians are investing in fine watches and statement jewellery as symbols of status, investment, and personal expression. This sector benefits from a growing appreciation for quality craftsmanship, as well as luxury brands' ability to blend traditional techniques with innovative designs. The prominence of high-end retail districts in cities like Sydney and Melbourne further strengthens market opportunities. In March 2024, Rolex unveiled a limited-edition Cosmograph Daytona model in Australia, featuring a bold new design with enhanced chronograph capabilities. The model is available exclusively through authorised Australian dealers.

The growth of the Australia luxury goods market is further fuelled by the increasing demand for luxury perfumes and cosmetics, driven by a heightened focus on self-care and premium beauty products. Consumers are seeking high-end skincare, fragrances, and cosmetics that offer exclusivity, superior quality, and long-lasting results. This demand is particularly strong among health-conscious, affluent Australians who view these products as integral to their lifestyle. The sector benefits from international brands expanding their presence in Australia and offering bespoke or limited-edition products tailored to local preferences. In January 2024, Dior launched a new addition to its exclusive "La Collection Privée" fragrance line in Australia. The new scent, "Bois d'Argent," is available only at select locations, reinforcing Dior's strategy of expanding its luxury fragrance offerings in high-end Australian retail spaces.

By Distribution Channel Analysis

The demand for the Australia luxury goods market is driven by both offline and online retail channels. Offline retail offers a personalised and exclusive shopping experience, with luxury brands engaging customers through high-touch services, bespoke consultations, and immediate product access. Physical stores in prestigious areas like Sydney’s CBD and Melbourne’s Collins Street enhance brand prestige and provide direct consumer interaction. In February 2024, Louis Vuitton opened an opulent new boutique on Collins Street, featuring a dedicated space for customisation services, offering Australian shoppers an immersive, luxurious experience.

The Australia luxury goods market is experiencing growth as the online channel extends the reach of luxury brands, offering greater convenience and accessibility. E-commerce enables consumers to shop for premium products from anywhere, often with the added advantage of virtual consultations and personalised services. This platform is particularly appealing to younger, tech-savvy shoppers. In January 2024, Tiffany & Co. introduced its virtual concierge service for Australian customers, providing tailored assistance from luxury advisors, thereby delivering the brand’s renowned high-touch service through digital channels across the country.

By End User Insights

According to the Australia luxury goods market report, demand for luxury goods among men is on the rise, particularly in areas such as high-end watches, fashion, and grooming products. As men increasingly embrace refined styles and invest in premium items, brands are responding with specially tailored collections for this segment. This trend not only diversifies the market but also drives growth in the luxury sector. In February 2024, Gucci launched its "Off The Grid" collection for men in Australia, offering eco-conscious luxury products, including bags, shoes, and apparel. This collection highlights Gucci's commitment to sustainability while maintaining its signature luxury style for Australian consumers.

The growth of the Australia luxury goods market is also fuelled by women, who remain key consumers of luxury goods. Strong demand for high-end fashion, jewellery, beauty, and accessories, alongside increasing disposable income, is propelling this market segment. Women’s desire for exclusive, high-quality products leads luxury brands to offer personalised experiences and bespoke collections, which strengthens customer loyalty. In February 2024, Dior introduced a limited-edition "J’adore" fragrance in Australia, celebrating femininity with refined floral notes and elegant packaging. The exclusive scent targets luxury fragrance enthusiasts seeking sophistication and exclusivity.

Australia Luxury Goods Market Regional Insights

New South Wales Luxury Goods Market Insights

New South Wales, with Sydney as its key hub, leads Australia’s luxury goods market, benefiting from a high concentration of affluent consumers and a robust tourism sector. The market is expected to grow at a CAGR of 3.9% from 2024 to 2032, driven by demand for luxury fashion, watches, and fine jewellery. High-end retail destinations, such as Pitt Street Mall, contribute to the growth. In 2023, New South Wales accounted for 31.6% of Australia’s total luxury goods sales, with both male and female consumers driving demand, particularly in fashion, watches, and jewellery, as reported by the Australian Bureau of Statistics.

Queensland Luxury Goods Market Trends

Queensland is forecast to grow at a CAGR of 4.2% from 2024 to 2032, supported by rising wealth, a growing tourism sector, and an increasing appetite for exclusive experiences. Sales of luxury fashion, jewellery, and premium automobiles are on the rise, particularly in Brisbane and the Gold Coast. In 2023, Queensland's luxury goods market saw a 5% increase, with both male and female consumers playing key roles in driving demand for fashion and premium accessories, according to the Queensland Government.

Western Australia Luxury Goods Market Dynamics

Western Australia’s luxury goods market, while smaller, benefits from an affluent population, particularly in Perth, and is boosted by the wealth generated by the mining and resource sectors. High-end jewellery, watches, and bespoke fashion are in high demand, alongside exclusive products sought by international tourists. In 2023, Western Australia’s luxury goods sales grew by 4%, with men driving demand for premium watches and jewellery, while women focused more on fashion and beauty products, as reported by the Department of Jobs, Tourism, Science, and Innovation.

Competitive Landscape

The Australia luxury goods market features key players offering a broad selection of premium beauty products, such as skincare and high-end fragrance lines. These brands maintain a strong presence across department stores, beauty counters, and online platforms, catering to affluent consumers. Known for their commitment to exceptional customer service and a luxurious brand image, these companies continue to lead the Australian beauty market, with a focus on innovation, inclusivity, and sustainable beauty practices.

Key Industry Players 

Kering S.A. (Gucci Australia Pty Ltd.): Established in 1963, Kering S.A. is a global luxury group headquartered in Paris, France. It owns several high-end brands, including Gucci, a major player in fashion and leather goods. Gucci Australia Pty Ltd. oversees the brand's operations in Australia, offering luxury fashion, accessories, and lifestyle products to affluent consumers.

Chanel (Australia) Pty Ltd.:  Founded in 1910 by Gabrielle "Coco" Chanel, Chanel is a renowned French luxury brand based in Paris. Chanel manages the brand's presence in Australia, offering iconic fashion, fragrances, and accessories. Chanel remains a symbol of timeless elegance, craftsmanship, and exclusivity in the Australian market.

Hermès Australia Pty Ltd.: Hermès was founded in 1837 in Paris, France, originally as a saddle-maker. Known for its high-quality leather goods, apparel, and accessories, Hermès Australia Pty Ltd. handles the brand's operations in Australia. The Australian arm continues the brand's tradition of luxury craftsmanship and exclusivity, catering to a discerning clientele.

Estee Lauder Pty. Ltd.: Estee Lauder was established in 1946 in New York City, USA, by Estée Lauder and her husband. Estee Lauder Pty. Ltd. oversees the brand’s operations in Australia, offering high-end skincare, makeup, and fragrances. Estee Lauder has become a trusted name in luxury beauty, renowned for its premium products and innovation.

Other key players in the Australia luxury goods market report are Cartier S.A., LVMH Moet Hennessy Louis Vuitton SE (Christian Dior Australia Pty Ltd.), Rolex S.A., Giorgio Armani S.p.A. and Tiffany & Co. (Australia) Pty Ltd., among others. 

Recent Developments

January 2024

Louis Vuitton introduced a new version of its renowned "Capucines" handbag in Australia, available in an array of luxurious leathers and bold colours. This release underscores the brand’s ongoing commitment to craftsmanship and sophistication, providing Australian women with a statement accessory for the season.

July 2023

Rolex unveiled the new men’s "Day-Date" watch in Australia, featuring an updated design with enhanced features. Offered in a selection of precious metals, this timepiece merges classic luxury with modern technological advancements, catering to high-net-worth Australian men who seek both elegance and practicality.