Beyond the Birkin: The future of luxury investing

InvestorDaily

The global luxury market is projected to reach US$700 billion by the end of the decade, expanding at an annual rate of 4 to 6 percent as the sector emerges from a period of slower growth. According to McKinsey’s State of Luxury 2026 report, much of this growth will be driven by the world’s two most important luxury markets: the US and China. The United States remains the world’s largest luxury market by sales, while China is expected to rank among the fastest-growing markets through 2030.

“Valued at around US$130 billion, the US is the world’s largest luxury market, projected to grow by as much as 5 percent annually through 2030,” the report stated. “China’s US$60 billion high-end market, meanwhile, is expected to recover and outpace other major regions, expanding by as much as six percent a year.” However, EY’s Luxury Client Index 2026, released in June, warned that the sector’s recovery remains fragile amid macroeconomic uncertainty, geopolitical instability, inflationary pressures and shifting client confidence.

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