China set to become biggest personal luxury market

China is expected to become the biggest personal luxury market by 2030 with total size of US$148 billion thanks to steady recovery and growing demand from the younger generation.

China's share of the global luxury market is expected to overtake the US as it's estimated to climb to 25 percent of the global market from around 19 percent last year, exceeding the 23 percent of the US, PwC's latest study shows.

Hainan's independent customs operation scheme set to begin in 2025 is a strong boost.

Duty-free luxury market size in Hainan is expected to grow at a compound annual growth rate of 91 percent from 2023 to 2025, reaching 160 billion yuan (US$22 billion) by 2025.

This could trigger expansion of luxury brands into sports and leisure sectors such as yachting, surfing and cruises.

Consumers in the southeast Asian regions and China are willing to pay about 20 percent above average for trustworthy products made from recycled, sustainable or eco-friendly materials, opening up new opportunities for luxury brands.

There's also unmet demand from the second generation of high net worth individuals who will inherit vast wealth.

They favor sustainable values, quiet luxury and a desire for upscale social experiences, generating business opportunities for luxury players.