High-End Design: The Thriving Global Market Beyond 2030
Luxury Design Market Recovers Following 2024 Slump
A slight dip in the high-end design market after the extraordinary sales results of 2022 isn't cause for panic, assures Claudia D'Arpizio, senior partner, and global fashion and luxury leader at Bain & Company. Despite a 2% decrease globally in 2024 compared to 2023 at constant rates, this market segment is still a powerhouse for Italian firms, who hold a prominent 25-30% share.
A Promising Outlook Ahead
Firstly, this decline is a normal corrective action after a period of exceptional growth post-pandemic. The global luxury furniture market is expected to soar to 48 billion euros in 2022. But there's good news: Bain forecasts an average yearly growth of 5-7% up to 2030, with potential revenue reaching 65-75 billion euros across the globe.
In contrast to other luxury sectors, high-end design has shown remarkable resilience, according to D'Arpizio. While industries such as luxury vehicles and art experience more noticeable contractions, furniture keeps its ground and isn't witnessing the explosive growth of sectors like gourmet dining, luxury cruises, or private air travel.
The Role of Non-EU Markets
Curiously, the market's temporary setback could benefit from one of its historical challenges: less exposure to non-European markets compared to industries like fashion, which have suffered due to the downturn in the Chinese market. Instead, D'Arpizio points out, the slowdown in the contract sector and the pausing of real estate development in Asia and the United States have affected high-end design more significantly.
Bain's research suggests recovery will commence this year and solidify over the next half-decade. "This is a sector yet to achieve its full potential," confirms D'Arpizio. "However, for Italian and European producers to capitalize on this growth, a more proactive approach to non-European markets — primarily Asia, the United States, and the Middle East — will be crucial."
The high-end design market anticipates a vibrant future with considerable growth opportunities outside EU borders, fueled by rapid urbanization, technological advancements, real estate growth, and sustainability trends in key non-European regions. So, keep an eye on the global stage, as this dynamic market is poised to captivate designers and businesses alike.
[1] Luxury Furniture Market Forecasts: Expansion Beyond EU Markets[2] Global Graphic Design Market Trends: Growth Opportunities Outside Europe[3] Luxury Interior Design Outlook: Emerging Markets to Watch[4] Sustainable Fashion: A Global Revolution and its Impact on Luxury Design Markets
- While the high-end design market experiences a temporary setback, it is positioned to capitalize on opportunities from rapid urbanization, technological advancements, real estate growth, and sustainability trends in key non-European regions such as Asia, the United States, and the Middle East, according to Bain & Company's research.
- For investors looking to capitalize on the high-end design market's expansion beyond EU borders, focusing on non-European markets, particularly Asia, the United States, and the Middle East, will be a strategic move as these regions present significant growth opportunities in luxury furniture, graphic design, interior design, and sustainable luxury design markets.
