Millennials, Gen Z and Gen Alpha, luxury’s biggest consumers by 2030: the world’s youngest demographics are investing in Chanel handbags and splurging on ‘post-streetwear’, gender-fluid fashion

Feb 7 , 2023

According to a new study by Bain & Company, the luxury market’s consumer base will reach 500 million by 2030 – with the world’s youngest consumers making 80 per cent of purchases

Web 3.0 and the metaverse are sure to draw in more Gen Y, Z and Alpha buyers, who aren’t shy to splurge … but go for Birkenstock-like ‘fussbett sandals’ over Nike sneakers

Generation Y, Z and Alpha consumers are not afraid to splurge when it comes to luxury – and their luxury bills are only expected to get bigger.

Dior collection of bags in a shopping centre in Munich, Germany, in April 2019. Photo: Shutterstock

The luxury market’s consumer base will reach 500 million by 2030, according to a report by Bain & Company published on January 17. Bain’s study is based on information and data provided by the Fondazione Altagamma, an Italian luxury goods body with over 280 luxury companies as members.

The lion’s share of those luxury purchases will be made by the youngest consumers globally, per the report: Generations Y, Z and Alpha will become the biggest luxury buyers by 2030, accounting for at least 80 per cent of global purchases.

Shoppers line up to visit a luxury retail store at a shopping centre in Shanghai, China, in May 2022. Photo: AP Photo

Millennials born between 1980 to 1994 are dubbed Generation Y, whereas Generation Z refers to those born between 1995 and 2009. Those born after 2010 are part of Generation Alpha.

Not only will they be the biggest spending group, but Generation Z’s and Generation Alpha’s spending is also slated to grow three times faster than other generations by 2030, occupying a third of the luxury market. This is a reflection of the generation’s “precocious attitude toward luxury”, the Bain report states.

These shifting trends have already become noticeable

Tourists shopping on Canton Road, Tsim Sha Tsui, Hong Kong. Photo: Dickson Lee

Insider reported in December that a vast number of young Americans between the ages of 18 and 29 are opting to live with their parents – at a level not seen since the Great Depression era – which is likely freeing up disposable income for luxury spending. Insider also looked at the spending habits of the youth and spoke to 20-somethings who live at home and splash out on cars, designer handbags and nightclubs.