South Korea Luxury Goods Market Outlook

According to the report by Expert Market Research (EMR), the South Korea luxury goods market size attained a value of USD 6.69 billion in 2024. Aided by the increasing consumer demand for high-end products and the growing influence of social media on luxury trends, the market is projected to further grow at a CAGR of 4.6% between 2025 and 2034 to reach a value of USD 10.02 billion by 2034.

Luxury goods, including high-end fashion, accessories, cosmetics, fragrances, and premium automobiles, are witnessing strong demand in South Korea. The country has a well-established luxury market, driven by affluent consumers, a strong economy, and a deep-rooted appreciation for premium brands. Moreover, South Korea’s position as a global fashion and beauty hub continues to attract international luxury brands, further strengthening the market’s expansion.

Key Drivers of the South Korea Luxury Goods Market

One of the primary factors driving the South Korea luxury goods market growth is the high disposable income and aspirational lifestyle of consumers. With a rising number of high-net-worth individuals (HNWIs) and an expanding upper-middle-class population, the demand for luxury fashion, accessories, and personal care products has surged significantly.

The growing impact of social media and digital marketing has also played a crucial role in the increasing adoption of luxury goods. Platforms such as Instagram, TikTok, and YouTube have become key channels for brand promotion, allowing luxury brands to engage with tech-savvy South Korean consumers. The influence of K-pop celebrities and fashion influencers has further driven the popularity of luxury items, as fans often seek to emulate their favorite idols' styles.

The expansion of e-commerce and digital retail has significantly boosted the accessibility of luxury products. With the presence of dedicated luxury e-commerce platforms and mobile applications, consumers in South Korea have seamless access to premium international brands. The convenience of online shopping, coupled with exclusive digital collections and virtual shopping experiences, has contributed to the market’s growth.

Additionally, the increasing preference for sustainable and ethically sourced luxury goods has created opportunities for brands focusing on eco-friendly production and responsible sourcing. Consumers are becoming more conscious of environmental and social factors, leading to a rise in demand for sustainable luxury fashion, cruelty-free beauty products, and ethically produced accessories.

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Emerging Trends in the South Korea Luxury Goods Market

One of the prominent trends in the South Korea luxury goods market is the rising demand for personalized and bespoke luxury items. Consumers are increasingly seeking exclusive, customized products that reflect their individual tastes and preferences, prompting luxury brands to offer tailored services and limited-edition collections.

The integration of technology in the luxury sector is also reshaping the market. Augmented reality (AR) and artificial intelligence (AI) are being leveraged by luxury brands to enhance customer experiences, offering virtual try-on solutions, AI-powered styling recommendations, and interactive digital showrooms.

Furthermore, the concept of "quiet luxury" is gaining traction, with consumers opting for understated yet high-quality luxury products over ostentatious branding. This shift has led to the rise of minimalist luxury fashion, refined accessories, and timeless designs that emphasize craftsmanship and exclusivity.

South Korea Luxury Goods Market Segmentation

The market can be divided based on product, end use, and distribution channel.

Market Breakup by Product

• Watches and Jewellery
• Leather Goods
• Perfumes and Cosmetics
• Clothing
• Eyewear
• Others

Market Breakup by End of Use

• Women
• Men

Market Breakup by Distribution Channel

• Offline
• Online

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the South Korea luxury goods market. Some of the major players explored in the report by Expert Market Research are as follows:

• LVMH Moët Hennessy
• Compagnie Financière Richemont SA
• Kering Group
• The Swatch Group Ltd
• Chanel
• ROLEX SA
• Minjukim
• Guccio Gucci SpA
• Chanel
• Prada SpA
• Others

Challenges and Opportunities

Despite its strong growth potential, the South Korea luxury goods market faces several challenges. The prevalence of counterfeit luxury products poses a significant threat to brand credibility and consumer trust. Additionally, fluctuating economic conditions and shifts in consumer spending patterns may impact luxury sales.

However, the market presents numerous opportunities for expansion. The increasing popularity of second-hand luxury goods and luxury resale platforms has opened new revenue streams for brands and retailers. Furthermore, collaborations between international luxury brands and South Korean designers or influencers have proven successful in capturing local consumer interest and driving brand loyalty.

Future Outlook

The South Korea luxury goods market is poised for significant growth in the coming years, driven by evolving consumer preferences, technological advancements, and the increasing influence of digital platforms. With the expansion of luxury e-commerce and experiential retail, brands are expected to explore innovative ways to engage with consumers and enhance the luxury shopping experience.

Moreover, as sustainability and ethical sourcing become key considerations for South Korean consumers, luxury brands that prioritize eco-friendly practices and responsible production will gain a competitive edge. The demand for high-quality, exclusive, and experience-driven luxury goods will continue to shape the market dynamics, offering substantial growth opportunities for both established and emerging players.