Consumer interest in luxury goods rising

More Americans are buying luxury goods compared to three years ago despite continued inflation.

Fifteen-percent of Americans purchased luxury goods in the last 12 months, up from 9% in 2021, according to YouGov’s report, "The US Luxury Boom 2024."  A large portion of these luxury buyers (43%) spent more than $1,000 on luxury goods in the past 12 months, showing that the category is seeing increased demand.

More than a quarter (26%) of respondents said they were likely to buy luxury goods in the next 12 months, an increase from 21% in 2023 and 2022, and an increase from 14% in 2021. More than a third (34%) of those surveyed said luxury goods are a good investment, and a similar amount (33%) said that they are willing to pay more for luxury brands.

“Luxury demand continues to skyrocket despite inflationary fluctuations,” said Chris Melchiorre, senior VP at YouGov America. “As more Americans purchase or consider purchasing luxury goods, luxury brands need a holistic understanding of their evolving and broadening customer segments.”

Among the age groups of 18-24, 25-34 and 35-44, shoes were the most popular category for luxury purchases at 40%, 41% and 43% respectively. Beauty products came in second for the youngest group at 33%, while 38% of both older groups had fashion accessories behind shoes when it comes to luxury purchases.

Most luxury buyers said that they buy products to reward themselves (42%), followed by 41% who said they do to “feel good.” More than a third (36%) say that the quality of luxury goods is better than standard products.

When it comes to brands, Rolex (15%) tops the leaderboard among Americans who have purchased luxury goods in the past 12 months. Gucci (11.6%), Dior (9.3%), Coach (8.1%) and Tiffany & Co. (8%) were all popular choices as well. For future brand considerations, Gucci topped the list at 36.3%, followed by Rolex (32.3%), Dior (28.2%), Tiffany & Co. (25.7%), Louis Vuitton (22.9%) and Prada (22.2%).