Hong Kong just reclaimed the global luxury crown: the city is once again the luxury market with the highest per capita expenditure, according to a Euromonitor report, beating Switzerland and the UAE

Nov 2 , 2023

Pedestrians walk past a Burberry store on popular luxury shopping street Canton Road in Tsim Sha Tsui, Hong Kong, in July 2019. Photo: Bloomberg

As the world continues to recover from the Covid-19 pandemic, a rebound of the global luxury scene has been long awaited, especially in Hong Kong.

An August 2023 report titled “World Market for Luxury Goods” by Euromonitor, a London-based market researcher, reveals that Hong Kong has regained its spot as the market with the highest per capita expenditure on luxury goods, after losing it to Switzerland and the UAE, with luxury jewellery as the front-running market in terms of post-pandemic growth in the Asia-Pacific (APAC) region.

Demand for luxury goods is high in Hong Kong, to a large degree thanks to mainland Chinese visitors. Photo: Bloomberg

This comes as Hong Kong opens up to a consistent flow of mainland Chinese tourists while adapting to post-pandemic market trends.

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Renowned as a global luxury hub, Hong Kong has enjoyed a long-standing reputation for its thriving market. It boasts a remarkable concentration of high-net-worth individuals (HNWIs) with an exceptional per capita expenditure on luxury goods. The city’s allure stems from its strategic location, robust economy, favourable tax policies and unrivalled status as a premier shopping destination, attracting affluent shoppers and luxury brands from around the world.

Hong Kong was not spared the brunt of the Covid-19 pandemic “retail apocalypse”, however the government’s multi-instalment Consumption Voucher Scheme brought some welcome relief. Photo: SCMP

However, the 2019 political unrest – followed by stringent anti-Covid measures starting from 2020 – dealt a blow to sales of luxury goods, causing Hong Kong to relinquish its position as the leading per capita spender, albeit temporarily. As pandemic restrictions eased in 2022, Hong Kong consumers swiftly rekindled their passion for luxury goods, resulting in a resurgence in sales and a notable upswing in per capita spending, with the city reclaiming its position as a thriving luxury market.

Pent-up demand for shopping was evident in Hong Kong in the wake of the pandemic, including at Kai Tak’s Airside mall, which opened in September 2023. Photo: Yik Yeung-man

Among various luxury categories, personal luxury items saw the highest sales, followed closely by premium and luxury cars. Hong Kong also stood shoulder to shoulder with its prominent competitor, Singapore, both experiencing remarkable year-on-year growth of 42.6 per cent and 46.6 per cent respectively, in the category of experiential luxury, as per Euromonitor’s report.

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Queues outside luxury brand stores are a common sight in Hong Kong, which welcomed 1.1 million mainland Chinese visitors during the National Day “golden week” holiday in September to October this year. Photo: Yik Yeung-man

In terms of luxury jewellery, Hong Kong emerged as the leader in APAC, witnessing an impressive growth rate of 25.8 per cent from 2021 to 2022, Euromonitor reports. When it comes to wearable luxury, the city consistently reigns supreme in the region as well, boasting the highest demand for luxury timepieces among both men and women, with a year-on-year growth of 28.1 per cent and 22.2 per cent, respectively, from 2021 to 2022.

Euromonitor’s latest world luxury report reveals the Hong Kong market’s resiliency when it comes to spending on luxury goods – and in particular luxury jewellery. Photo: Yik Yeung-man

The report not only projects Hong Kong to regain pre-pandemic levels of luxury sales by mid-2024, but also expects the SAR to maintain its current lead as the city with the highest per capita spending on luxury goods up until 2028.

Hong Kong

In the wake of the 2019 unrest and three years of stringent anti-Covid measures, Hong Kong’s luxury market rebounded strongly in 2023, per the ‘World Market for Luxury Goods’ report
Mainland Chinese visitors have flocked to the city, including for the recent National Day ‘golden week’ break, with jewellery the fastest luxury sector to bounce back in the APAC region