Australia luxury market seen growing to $15.5 billion by 2034

By AI, Created 5:26 PM UTC, May 18, 2026, /AGP/ – Australia’s luxury market was valued at $8.5 billion in 2025 and is projected to reach $15.5 billion by 2034, driven by rising high-net-worth wealth, tourism recovery and stronger digital shopping. The shift toward quiet luxury, sustainability and AI-enabled personalization is reshaping how premium brands sell across the country.

Why it matters: - Australia’s luxury sector is moving from niche growth to a broader premium economy anchored by affluent consumers, travel recovery and digital retail. - The market’s projected rise to $15.5 billion by 2034 signals more demand for luxury goods, hospitality, travel and premium services. - Brands that adapt to sustainability, personalization and omnichannel selling are positioned to capture the fastest-growing spending.

What happened: - IMARC Group said Australia’s luxury market reached $8.5 billion in 2025. - IMARC Group forecast the market will reach $15.5 billion by 2034. - The research put the market on a 6.84% CAGR from 2026 to 2034. - The report was released May 12, 2026. - The company published a request sample report and a full report.

The details: - Personal luxury goods, including fashion, jewelry, watches and leather accessories, hold the largest share of the market. - Experiential luxury, including travel, hospitality, fine dining and wellness, is growing at a 6% value CAGR. - Luxury watches and jewelry are expanding at a 4.1% CAGR through 2032. - Monobrand stores remain the leading distribution channel. - Online stores are the fastest-growing channel. - ACT and New South Wales lead regional demand, driven by Sydney’s high-net-worth concentration, premium retail precincts and tourism access. - The market spans travel and hotel, cars, personal luxury goods, food and drinks, and other categories. - The report segments demand by male and female consumers, as well as by monobrand stores, multibrand stores, online stores and other channels. - The report also breaks the market into ACT & NSW, Victoria & Tasmania, Queensland, Northern Territory & South Australia, and Western Australia.

Between the lines: - Australia’s luxury market is being shaped less by status signaling and more by understated branding, craftsmanship and exclusivity. - The quiet luxury trend is gaining traction as affluent consumers favor subtle quality over visible logos. - Sustainability is shifting from a marketing add-on to a baseline expectation, with eco-friendly materials, ethical sourcing and circular programs becoming more important. - AI is emerging as a competitive requirement. Seventy-seven percent of Australian retailers said AI agents will be essential within a year, and 74% plan to increase AI spending. - That push is likely to accelerate virtual try-ons, augmented reality shopping, demand forecasting and concierge-style digital service. - International luxury groups including LVMH, Kering, Hermès, Chanel and Cartier have strengthened their Australian retail presence. - Recent deal activity, including Ark Capital Partners’ acquisition of Melbourne Place Hotel and La Bottega’s majority stake in Vanity Group, points to investor interest in premium hospitality and beauty.

What’s next: - Luxury brands are likely to keep investing in omnichannel retail, AI personalization and digital customer service. - Tourism recovery should continue supporting luxury hotels, premium retail centers and experiential offerings in Sydney, Melbourne, the Gold Coast and other destinations. - Pre-owned and circular luxury could gain more traction as authentication tools and sustainability concerns grow. - The strongest opportunities appear to be in experiential luxury, premium hospitality and digitally enabled personal luxury goods.

The bottom line: - Australia’s luxury market is expanding, but the growth story is changing. Winning brands will need to balance craftsmanship and exclusivity with digital convenience, sustainability and AI-driven personalization.