China: A Growing Powerhouse

By 2025, China’s luxury market is predicted to reach $119bn, up from $64bn in 2021 (PwC, 2023). Meanwhile, China’s community of high-net-worth individuals (HNWIs) could hit 17 million by 2026, compared with nine million in 2021 (Statista, 2023). Increasingly, Chinese consumers want to support brands with cultural heritage and affiliation with their culture.

Middle East: The Diversification Directive

Although the Middle East is experiencing an economic growth slowdown this year, the region’s luxury sector continues to thrive. Analysts expect an “off-the-charts” 15% rise in high-end spending in 2023 (Morgan Stanley, 2023). Meanwhile, Middle Eastern investment funds continue to pour capital into the region, leading to new luxury tourist hubs.

India: A Future Target

As the fifth largest global economy with a base of wealthy consumers, India is poised for significant growth. Currently worth $8.5bn (CNBC, 2023), the country’s high-end goods and services market is projected to increase 3.5 times by 2030, fuelled by the expanding upper and middle classes, younger aspirational consumers and a rising number of HNWIs (Bain & Company, 2022).

Africa’s Big 5: Future Potential for Wealth Expansion

Africa is home to the world’s youngest population (see 10 Youth Trends: 2023). As this population grows and urbanises, the continent will become the next epicentre of cool. Currently, wealth is concentrated in five markets: South Africa, Egypt, Nigeria, Kenya and Morocco, where consumer behaviours are advancing brand “Made in Africa” and e-commerce.

Brazil: Boosting Real Estate and Travel

After stratospheric luxury industry growth in 2021, Brazil’s sector faces a more subdued forecast for 2023. Extravagant spending will be driven by the country’s HNWIs, who hold 54.6% of the wealth (Statista, 2022) and show a willingness to splurge on lavish properties and high-end travel within their country.