HK luxury market to reach $125.8b by 2030

Analysts said the growth will be driven by leather goods, jewellery, and timepieces.

Hong Kong’s personal luxury market is poised to continue its growth in the coming years, with a projected compound annual rate of 4.5% from 2023 to 2030, reaching $125.8b by 2030, according to a study by PwC.

Three categories will drive the luxury market: leather goods, jewellery, and timepieces. 

The sector is currently slowly recovering, but PwC analysts believe there will still be stable economic growth in the said period due to policy stimulus.   

“The optimised ‘multi-entry permits’ policy (under discussion) and consumption incentives (e.g. real estate,  promotional air tickets, visitor consumption vouchers, etc.)​ will facilitate the development of the luxury market,” PwC China noted.

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Despite the expected growth, Hong Kong's luxury market is expected to still face challenges in 2024, noted Michael Cheng, Asia Pacific, Mainland China, and Hong Kong consumer markets leader at PwC.

Challenges include less price advantage due to the continuous strength of HKD/USD against RMB resulting in a narrower price gap, as well as tighter competition from Hainan and Shenzhen. 

Cheng advised luxury groups to enhance their offerings, management, and operations to “dominate the rapidly evolving market in the next decade.”

They should target very important clients and the next generation of (ultra-) high-net-worth individuals as their core customers, he added.