A third of luxury shoppers expect to spend more on luxury products in 2024
April 15th, 2024, Bhavika Bansal

A third of luxury shoppers expect to spend more on luxury products in 2024

The luxury goods sector in the US is projected to generate a revenue of approximately USD 77.28 billion in 2024 and experience an annual growth rate of 1.90%. A new YouGov analysis examines American luxury retail consumers, investigating their motivations for purchasing luxury goods and their buying habits.

Data from YouGov Profiles, an audience segmentation tool sheds light on whether American luxury retail shoppers purchase behaviors are likely to change over this year compared to last year.

More than a third of luxury shoppers say they are likely to spend the same amount on luxury goods this year, compared to the last (36%) and 31% say they are likely to spend more. On the other hand, less than a fifth of the group says they plan to spend less on luxury products than they did last year (16%).

Data from YouGov Profiles also reveals that 15% of all Americans say they have bought luxury products for themselves in the past year (i.e. luxury shoppers). A tenth of Americans also say that the luxury goods they own, were received as a gift (10%).

A closer look at the data reveals further insights into attitudes towards luxury products amongst luxury shoppers in the US compared to the broader American population overall.

Perhaps unsurprisingly, American luxury shoppers are far likelier than the national average to only buy the best-known brands (49% vs. 30%) and to pay more for luxury brands (59% vs. 33%).

And while three quarters of luxury retails shoppers agree that luxury goods are premium quality products (75%), this proportion falls significantly amongst all Americans (52%).

Luxury retail shoppers also appear to have a hard time saying no to expensive products (45%) and are almost twice as likely as the national average to agree that luxury goods are a good investment (63%).

Why do Americans typically purchase luxury products?

A closer examination of luxury retail shoppers reveals that they’re mostly buying luxury items as rewards for themselves (42%). 

More than a third of the group is likely to buy a luxury product since the quality of luxury goods is better (35%) and one out of four are likely to do so as a present or reward for someone else (26%). Nearly a fifth say they are likely to buy luxury items as collectibles (19%), to distinguish themselves (17%) or to show off (12%).

When do Americans typically buy luxury products?

Now that we know the reasons that typically motivate Americans to purchase luxury products, let's look at the occasions when they’re most likely to make these purchases.

More than a third of this group say they have bought a luxury product as a birthday gift for themselves (35%) or for someone else (34%). An additional quarter bought a luxury item because it was the latest version released (23%) or as an anniversary present (22%).

A little more than a tenth say they have made such a purchase for a christening (14%), as an apology (13%). 12% say they don’t need a specific special occasion to buy a luxury product (12%).

What are the top categories of luxury goods purchased by American luxury shoppers?

Shoes top the list of luxury products purchased by American luxury retail shoppers in the past year (40%) followed by accessories (35%), beauty products (35%), and electronic devices (32%).

More than a quarter of luxury shoppers indicate that they have purchased luxury food items and watches (27% for both) followed by one in four who have bought a luxury vacation (23%) and necklaces (22%).

Curious to know how much money luxury buyers in the US are spending and their favorite brands?

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Methodology: YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data for the US is nationally representative and weighted by age, gender, education, region, and race. Learn more about Profiles