South Korea Luxury Goods Market Size, Share, Trends and Forecast | 2032

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 2023. Aided by rising disposable income, changing consumer preferences, and increasing demand for high-end fashion, beauty, and lifestyle products, the market is projected to grow at a CAGR of 4.6% between 2024 and 2032, reaching a value of USD 10.02 billion by 2032

South Korea is recognized as a key market for luxury goods in Asia, with high demand driven by its affluent population, brand-conscious consumers, and cultural focus on prestige and social status. The luxury goods market in South Korea encompasses various product categories, including apparel, accessories, beauty products, watches, jewelry, and automobiles. The market is heavily influenced by trends in fashion, entertainment, and technology, as well as the increasing influence of social media and celebrity endorsements.

Key Market Drivers

The rapid urbanization and rising disposable incomes of South Korea’s middle and upper-class populations are primary factors driving the luxury goods market. South Korean consumers have demonstrated a strong appetite for luxury items, particularly in urban areas such as Seoul and Busan, where luxury fashion and beauty products are seen as symbols of social status and self-expression. High-income consumers, along with a growing number of younger, brand-conscious individuals, have contributed significantly to the expansion of the luxury market in South Korea.

Additionally, the rise of Hallyu (Korean Wave) and the global popularity of K-pop, K-drama, and Korean beauty standards have created an international appeal for South Korean luxury goods. Celebrities and influencers often promote luxury brands, further increasing their desirability. This influence extends beyond the domestic market, as South Korean luxury consumption patterns are mirrored by international consumers, contributing to the global presence of South Korean brands.

Luxury spending in South Korea is also buoyed by its sophisticated retail landscape, which features high-end department stores, luxury shopping districts, and duty-free outlets catering to both domestic shoppers and international tourists. Tourists, particularly from China and Japan, significantly impact luxury sales in South Korea, with duty-free stores in major cities and airports contributing to the market’s overall growth.

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Influence of Social Media and Digital Platforms

Social media has emerged as a powerful tool in driving the South Korea luxury goods market. Platforms such as Instagram, YouTube, and TikTok play a crucial role in shaping consumer preferences, especially among millennials and Gen Z consumers. Beauty influencers, fashion bloggers, and celebrities showcase luxury brands on these platforms, offering reviews, product recommendations, and style inspirations that influence buying decisions.

Furthermore, the growth of e-commerce has transformed the retail landscape for luxury goods in South Korea. With the advent of online luxury marketplaces and direct-to-consumer platforms, high-end brands can reach a wider audience, including those in smaller cities and rural areas. Online channels provide convenience and accessibility, allowing consumers to browse and purchase luxury goods from the comfort of their homes. The COVID-19 pandemic further accelerated the shift towards e-commerce, as physical retail stores faced temporary closures, leading consumers to increasingly adopt online shopping for luxury items.

Luxury brands have also embraced digital innovation, integrating features such as virtual try-ons, AI-powered product recommendations, and personalized online shopping experiences to enhance customer engagement. This digital transformation is expected to continue driving growth in the luxury market, with consumers seeking a seamless omnichannel experience that combines both in-store and online shopping.

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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 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 S.p.A.
• Chanel
• Prada S.p.A
• Others

Sustainability and Ethical Consumerism

As in other global markets, sustainability is becoming an increasingly important factor in the South Korea luxury goods sector. Consumers, particularly younger generations, are seeking brands that align with their values around environmental responsibility, ethical sourcing, and sustainable production practices. This trend has led to a rise in demand for eco-friendly luxury products, including those made from sustainable materials, as well as brands that promote transparency in their supply chains.

Luxury brands operating in South Korea are responding to this shift by adopting more sustainable practices, such as reducing their carbon footprint, using recycled materials, and implementing fair labor standards. The push for sustainable luxury is expected to continue shaping the market, with consumers increasingly prioritizing brands that demonstrate a commitment to environmental and social responsibility.

Challenges and Opportunities

Despite its promising growth trajectory, the South Korea luxury goods market faces several challenges. One of the primary concerns is the increasing competition from counterfeit products, particularly in the online marketplace. Counterfeit luxury goods not only erode consumer trust but also negatively impact the sales of legitimate brands. To combat this issue, luxury brands are investing in advanced technologies such as blockchain and product authentication tools to ensure the authenticity of their products and protect their brand equity.

Additionally, the high level of competition within the luxury sector itself presents a challenge for both new and established brands. With a saturated market and discerning consumers, brands must continually innovate and offer differentiated products to stand out. This includes creating personalized experiences, offering limited-edition items, and leveraging exclusive collaborations to attract high-end consumers.

Nonetheless, the South Korean luxury market offers significant opportunities for growth, particularly in the digital and e-commerce space. Brands that invest in creating a seamless online shopping experience, while maintaining a strong presence in brick-and-mortar stores, are likely to succeed in the evolving market landscape.

Future Prospects

The South Korea luxury goods market is expected to continue its growth over the forecast period, driven by rising consumer incomes, increasing digitalization, and evolving preferences for premium products. The influence of Hallyu, social media, and global beauty and fashion trends will continue to shape the market, with both international and local brands vying for a share of the affluent consumer base.

Sustainability and ethical consumerism are set to play a larger role in the future of luxury, with brands that embrace eco-friendly practices and transparent supply chains gaining favor among conscientious consumers. Moreover, the integration of digital technologies and personalized shopping experiences is expected to enhance customer engagement and drive further market expansion.

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