South Korea Luxury Goods Market Size, Share, Trends and Report

South Korea Luxury Goods Market Outlook

The South Korea luxury goods market size reached a value of over USD 6.69 billion in 2024. The market is projected to grow at a compound annual growth rate (CAGR) of 4.6% between 2025 and 2034, reaching a value of approximately USD 10.02 billion by 2034. This growth is driven by a rising affluent population, increasing disposable incomes, and a growing desire for high-end, premium products across various sectors, including fashion, accessories, and cosmetics.

South Korea's growing status as a fashion hub in Asia, combined with the increasing adoption of luxury items by both younger consumers and high-net-worth individuals (HNWIs), is expected to continue fueling the market's growth. The market is also witnessing a shift towards online shopping, as consumers embrace digital platforms for the purchase of luxury products.

South Korea Luxury Goods Market Trends

Several trends are shaping the growth of the South Korea luxury goods market:

Rise of Young Affluent Consumers: Younger generations, particularly millennials and Gen Z, are becoming major drivers of the luxury goods market in South Korea. These consumers are increasingly investing in luxury items, driven by a desire for exclusivity, status, and high-quality products. Social media, celebrity endorsements, and K-pop culture have significantly influenced their purchasing decisions.
Digital Transformation and E-Commerce Growth: The rapid shift towards online shopping is transforming the luxury goods market in South Korea. Consumers are increasingly purchasing luxury products from e-commerce platforms, as it offers convenience and access to a broader range of exclusive items. Luxury brands are enhancing their online presence with user-friendly websites and social media marketing campaigns.
Focus on Sustainability and Ethical Luxury: There is growing awareness around sustainability in the luxury goods sector, with more consumers demanding environmentally friendly and ethically produced products. Luxury brands are responding by adopting sustainable practices, such as using eco-friendly materials and ensuring fair labor practices, to appeal to the eco-conscious consumer.
Increased Investment in High-End Experiences: Beyond traditional luxury products, South Korean consumers are increasingly investing in luxury experiences, such as exclusive events, travel, fine dining, and private services. This trend is in line with a broader global shift toward spending on experiences rather than just material goods.
Growth of Men's Luxury Fashion: Men’s luxury goods, particularly fashion and accessories, are gaining significant traction in South Korea. Male consumers are increasingly investing in high-end clothing, watches, and leather goods, leading to the expansion of luxury offerings tailored specifically for men.
Cultural Influence of K-Pop and Celebrities: South Korea's global cultural influence, particularly through K-pop and other entertainment, has led to increased demand for luxury products. Many luxury brands collaborate with K-pop stars and influencers to market their products, making them more desirable among South Korea's fashion-forward and trend-conscious population.

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South Korea Luxury Goods Market Growth

The South Korea luxury goods market is expected to grow steadily at a CAGR of 4.6% between 2025 and 2034, supported by several growth drivers:

Rising Affluent Population: South Korea’s growing number of high-net-worth individuals (HNWIs) and an expanding affluent middle class is contributing to the increased demand for luxury goods. As disposable incomes continue to rise, more consumers are looking to purchase high-end products as a symbol of their success.
Strong Presence of Global Luxury Brands: South Korea is home to a large number of international luxury brands, which are experiencing robust sales. The presence of prestigious luxury houses such as LVMH, Gucci, Chanel, and Prada offers South Korean consumers access to the latest products and exclusive collections, further stimulating the market's growth.
Increasing Focus on Wellness and Self-Care: As wellness and self-care become key areas of interest for South Korean consumers, there is growing demand for luxury cosmetics, perfumes, and skincare products. South Korea's beauty market is highly regarded globally, and consumers are increasingly spending on premium beauty products to achieve youthful and radiant skin.
Tourism and Duty-Free Shopping: South Korea’s tourism sector plays a key role in the luxury goods market, with tourists from China, Japan, and other countries flocking to the nation for luxury shopping. Duty-free stores, especially those in major airports and shopping districts, have become significant contributors to luxury goods sales.
Growth in Online and Omnichannel Shopping: The ongoing expansion of online luxury shopping platforms is making luxury goods more accessible to consumers in South Korea. Brands are investing in digital platforms, improving customer engagement through social media, and offering exclusive online collections to tap into the e-commerce boom.

South Korea Luxury Goods Market Segmentation

The South Korea luxury goods market can be segmented by product type, gender, distribution channel, and region, providing further insights into consumer preferences and market dynamics.

1. Breakup by Product Type:

Watches and Jewellery: Watches and jewellery remain one of the largest categories in the luxury goods market. Consumers in South Korea, especially men and high-net-worth individuals, are increasingly investing in luxury watches and fine jewellery as a symbol of status and wealth.
Leather Goods: Leather goods, including handbags, wallets, and belts, are highly sought after in South Korea. High-quality craftsmanship and iconic designs drive the demand for luxury leather products, particularly from prestigious brands like Louis Vuitton, Gucci, and Prada.
Perfumes and Cosmetics: South Korean consumers are increasingly willing to spend on luxury beauty and skincare products. Perfumes, makeup, and skincare products from top global brands are highly popular among both men and women.
Clothing: Luxury clothing, including designer dresses, suits, and casual wear, is in high demand in South Korea. Fashion-conscious consumers seek high-end clothing brands, especially in urban centers like Seoul.
Eyewear: Luxury eyewear brands like Ray-Ban, Chanel, and Prada are gaining popularity in South Korea, where consumers value style, exclusivity, and high-quality materials in their fashion accessories.
Others: Other luxury items such as shoes, accessories, and lifestyle products also contribute to the overall growth of the market.

2. Breakup by End Use:

Women: Women continue to represent the largest consumer group for luxury goods, with strong demand for luxury fashion, accessories, cosmetics, and jewellery. As the purchasing power of women increases, they are increasingly investing in high-end products.
Men: The men’s luxury goods market in South Korea is expanding, particularly for fashion, watches, and leather goods. The rise of male grooming and the growing popularity of men’s luxury clothing are driving market growth.

3. Breakup by Distribution Channel:

Offline: Traditional brick-and-mortar retail stores remain a key distribution channel for luxury goods, particularly in high-end shopping districts and department stores. Consumers prefer to physically try and inspect products before making high-value purchases.
Online: The online shopping segment is experiencing rapid growth, with many consumers opting to purchase luxury goods through e-commerce platforms. Brands are investing in their digital presence to cater to the increasing demand for online shopping.

Market Key Players

Key players in the South Korea luxury goods market include:

LVMH Moët Hennessy
Compagnie Financière Richemont SA
Kering Group
The Swatch Group Ltd
ROLEX SA
Minjukim
Guccio Gucci S.p.A.
Chanel
Prada S.p.A.
Others

These brands lead the South Korea luxury goods market by offering exclusive, high-quality products that cater to the tastes and preferences of affluent consumers. They are also leveraging online and offline distribution channels to enhance their market reach and solidify their position as top players in the luxury sector.