10 Worst-Performing Industries in 2024

7. Luxury

S&P Global Luxury Index: -3.88%

The global luxury market has been underperforming the broader market in 2024 owing to factors, some of which are short-term while others are more long-term. Several luxury companies like LVMH, Burberry, Kering and Lanvin saw double-digit drops in various growth metrics in the start of the year.

The major setback for the industry has been macroeconomic factors like the slowdown of economic growth in China, which accounts for 35% of global luxury consumption, according to research by Bain & Company. The World Bank projects further decline in the Chinese economy’s growth in 2025 despite a temporary boost resulting from recent monetary stimulus measures.

Further, the report notes that the post-pandemic consumer sentiment seems to be shifting from tangible goods to experiences.

Another report by HSBC Global Research attributes the luxury spending decline in major markets like the US and China to the luxury industry’s woes. The report also says that European customers are adopting a ‘wait and see’ approach because many brands had adopted a ‘greedflation’ approach after the pandemic.

The report projected a revised growth rate of 2.8% for the luxury industry for the year 2024, down from 5.5% in the previous forecast, and called it the sixth worst year for the industry in the past 20-year period. However, they see the industry return to single high digits in early 2025, expecting a strong rebound.