Explainer | China’s luxury goods market: how big is it, and what impact has the coronavirus pandemic had?

China accounts for more than a third of the global luxury goods market and its share is forecast to grow as more households earn upper-middle class incomes

While retail spending during the pandemic has been sluggish, many Chinese have looked to luxury shopping as an alternative to experiences like holidays

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Chinese are among the most prolific spenders on luxury products. Photo: Getty Images

Published: 2:30pm, 6 Nov 2021Updated: 11:33am, 12 Nov 2021

China is a key driver of global sales of luxury goods, from expensive jewellery to private jets.

While the global market for high-end products has taken a hit during the coronavirus pandemic, mainland China’s share of that pie has increased. Here’s a snapshot of the country’s appetite for the finer things in life.

How big is China’s luxury goods market?

China’s share of the global luxury goods market was about 32 per cent in 2020, but in five years it is set to surpass the United States to become the world’s largest, while commanding more than a third of sales in the Asia-Pacific, according to Euromonitor International.

The total value of China’s personal luxury goods market – which excludes services and experiences – was valued at 44 billion euros (US$50.9 billion) in 2019, according to Statista, a market and consumer data platform.

Chinese tourists are also big spenders on high-end products while abroad, accounting for between 17 and 20 per cent of all global luxury sales in 2019, the Financial Times reported in October.

Shopping destinations across Europe and the US have been severely affected by the loss of big-spending Chinese customers during the Covid-19 pandemic.