The UK’s luxury sector is witnessing a remarkable era of growth and internationalisation, having bolstered its value to an impressive £81 billion annually, as revealed by a new report from Walpole, the sector’s leading body.
This represents a 69% surge over the past five years, underlining the industry’s resilience amidst economic fluctuations.
Notably, the luxury sector has significantly contributed to the UK’s economy, supporting over 450,000 jobs across varied fields and adding £25.5 billion in tax receipts to the Exchequer. This financial injection is pivotal for funding essential infrastructure projects, showcasing the sector’s vital role in the broader economic landscape.
Walpole chief executive Helen Brocklebank introduced the report: “We are delighted to publish our first study for five years, and the most comprehensive to date, demonstrating that the British luxury sector is vital to the UK economy We have quantified the significant high-quality employment offered by the sector throughout every region in the UK across hospitality, retail and manufacturing. The UK luxury industry deserves recognition and support to ensure our high-growth sector continues to flourish.”
Expanding Global Footprint of UK Luxury Exports
Luxury exports from the UK have reached a new zenith at £56 billion, marking a 45% increase over the last five years. Notably, the jewellery segment, including watches and precious metals, accounted for £2.8 billion of this figure.
The sector’s global footprint is expanding, with approximately two-thirds of UK-manufactured high-end products finding their way to international markets, including the EU, North America, the Gulf, and China. The EU remains the largest market, despite a slight reduction in its share, attributed to the challenges post-Brexit. However, North America and the Gulf have emerged as significant markets, with the latter surpassing China as the third-largest destination for UK luxury goods, particularly for jewellery, watches, and precious metals.
Walpole chairman and Harrods managing director Michael Ward said: “British luxury has shown incredible resilience and strength over the past unprecedented few years. Since our last report, published in 2019, the sector has faced many challenges – namely the effects of Covid-19 lockdowns across the world, establishing new trading relationships with the EU, greater fragmentation in global trade, and the scrapping of the VAT Retail Export Scheme.
Future Projections and Industry Resilience
The luxury sector’s robust growth is forecasted to continue, with projections suggesting it could generate £125 billion annually by 2028. This optimistic outlook is backed by the sector’s adaptability to changing global trends, such as the shift towards low-carbon solutions and the ability to tap into emerging markets. The industry’s resilience, coupled with its capacity for innovation and commitment to excellence, positions it as a key player in the UK’s economic future, potentially outpacing traditional industries like life sciences and construction in revenue generation.
For professional jewellers and those involved in the luxury jewellery sector, these insights offer a comprehensive overview of current trends, growth projections, and market dynamics essential for strategic planning and investment decisions. The detailed analysis underscores the importance of understanding global market shifts, the impact of geopolitical tensions on trade, and the ongoing transition to sustainability within the luxury sector. As the industry continues to evolve, staying informed and adaptable will be crucial for businesses aiming to thrive in this competitive landscape.
For further information and insights, the full report and additional resources can be accessed through Walpole’s official website.
