The luxury industry is witnessing a ‘nouvelle vague’ – or ‘new wave’ – according to the latest Bain & Company and Altagamma Luxury Study, a collaboration between Bain & Company and Fondazione Altagamma, the trade association of Italian luxury goods manufacturers’ industry association.

The study notes that the global luxury goods market took a leap forward in 2022 and is poised for further expansion this year and for the rest of the decade to 2030, even in the face of economic turbulence. It also says that a powerful factor for sector growth this decade will be generational trends. Generation Y (millennials) and Generation Z accounted for all of the market’s growth in 2022.

The spending of Gen Z and the even younger Generation Alpha is set to grow three-times faster than other generations’ through 2030, making up a third of the market. This reflects a more precocious attitude towards luxury, with Gen Z consumers starting to buy luxury items some three-to-five years earlier than millennials did (at 15 vs. at 18–20). Gen Alpha is expected to behave in a similar way.

As a generation with increased digital engagement and higher sensitivity to ethics and sustainability around social causes and climate change, Gen Z is changing the face of luxury. The report also indicates that India stands out among the rising stars and is expected to see a three-and-a-half-times increase in its luxury market by 2030. This growth is likely because of young consumers’ interest, evolved behaviour and attitude towards luxury goods.