Luxury Foods Market compound annual growth rate (CAGR) of roughly 16.66% between 2023 and 2030
Luxury Foods Industry Prospective:
The global luxury foods market size was worth around USD 160.51 billion in 2022 and is predicted to grow to around USD 550.65 billion by 2030 with a
Luxury Foods Market: Overview
Luxury food is considered as a part of an exclusive and limited experience. Luxury food cannot be specifically defined since its definition and meaning have evolved over the years. However, in simple terms, luxury food is a form of showcasing status and social standing. Some of the characteristics that classify a food product as a luxury experience are the refinement that the food has to offer in addition to taste, texture, and fat content. Luxury food products stand out from the rest of the offerings in the food industry based on either quality or quantity since the former must offer a superior experience. The parameters that luxury food must possess are superior quality, price, rarity, aesthetics, symbolism, and extraordinariness.
Luxury food, similar to any other luxury product, is more expensive than its counterparts. They are curated only for a certain segment of society to enjoy either belonging to a specific economic or social background. In the last few decades, luxury food has become a symbol of showcasing one social standing over the others. The market for luxury foods is niche and does not cater to a large group of consumers.
Key Insights:
- As per the analysis shared by our research analyst, the global luxury foods market is estimated to grow annually at a CAGR of around 16.66% over the forecast period (2023–2030)
- In terms of revenue, the global luxury foods market size was valued at around USD 160.51 billion in 2022 and is projected to reach USD 550.65 billion, by 2030.
- The luxury foods market is projected to grow at a significant rate due to the rising food tourism globally
- Based on end-user segmentation, high-end restaurants were predicted to show maximum market share in the year 2022
- Based on type segmentation, seafood was the leading segment in 2022
- On the basis of region, North America was the leading revenue generator in 2022
Luxury Foods Market: Growth Drivers
Rising food tourism globally may drive market growth during the forecast period
The global luxury foods market is projected to grow owing to the increasing food tourism across the globe. The rise in disposable income along with a growing number of people who prefer traveling to traditional means of living that focus more on monetary savings, has been a crucial cultural driver of the global food service industry. The general population is keener on exploring the world including local and exquisite food products. For instance, a report published by Experian, a global credit reporting company, concluded that nearly 59% of millennials and 63% of Generation Z (Gen Z) want to spend money on earning life experiences such as traveling or attending concerts rather than saving up for the future. The trend has been further strengthened by the growing unconventional opportunities of earning livelihood including access to social media platforms. This allows more people to gain higher financial independence and explore other activities just as splurging on luxury foods.
For instance, Japan is currently witnessing an influx of travelers from across the globe. Japan is also home to the world’s leading luxury food product in the form of Kobe beef originating from Wagyu cattle. Cattle cannot be classified as Kobe unless it is born, raised, and processed in Hyogo Prefecture in Japan. These unique distinctions provide the product with a form of illusion making them appear as an exclusive experience specifically to be enjoyed by limited consumers. As per Tomo Japanese restaurant, the cost of Kobe beef can range between USD 200 to USD 500 per pound. However, the growth in global food tourism may deliver higher demand for luxury food since customers are willing to save and spend on exclusive experiences.
Growing access to credit cards and other forms of financial assistance may propel market demand
The global luxury foods market is projected to grow further due to the increasing use of credit cards among the general population. The rise in public awareness and increasingly aggressive marketing strategy by credit card providers has led to a staggeringly high number of citizens using credit cards for all purchases. As per reports, nearly 82% of all US citizens use credit cards. This allows them to buy a product first and pay later when possible.
Luxury Foods Market: Restraints
High price of luxury food will restrict market expansion
The global luxury foods industry is projected to be restricted due to their high cost. Luxury foods are inherently expensive. They are not meant to be consumed regularly since regular consumption contradicts the main characteristics of luxury foods which are rarity and exclusiveness. However, these traits also work against the luxury foods industry since the market audience is highly limited. The scope of expansion for luxury foods is narrow. In addition to this, the growing economic volatility worldwide and the rising rate of employment terminations may add to the list of market growth barriers.
Luxury Foods Market: Opportunities
Leveraging social media marketing in countries with high net worth may promote higher market growth
The global luxury foods market is anticipated to come across more growth opportunities by leveraging the strengths of social media marketing, especially targeting countries with an existing segment of people with high net worth or emerging economies that are witnessing a rise in the population group willing to spend on luxury products. In addition to this, market players can also benefit by introducing healthier options as there is a growing market for health-conscious people seeking food products that offer several health benefits.
For instance, the Middle East is becoming increasingly popular among food enthusiasts. Countries such as the United Arab Emirates (UAE) are registering a higher number of elite restaurants and food service units offering exquisite menus. For instance, Sublimotion is considered UAE’s most expensive restaurant with Dh5,000 per seat. Apart from a lavish menu, the facility also offers an immersive dining experience. The country along with other Middle Eastern nations is working towards positioning itself as a region for luxurious living and experiences.
Celebrity collaborations and partnerships hold tremendous growth possibilities
The global players operating in the luxury foods segment may benefit by partnering with celebrities and known personalities. The modern times are a reflection of celebrity culture where influential people hold tremendous power among their followers. Luxury food providers can benefit by collaborating with such individuals.
Luxury Foods Market: Challenges
Maintaining the perceived value of luxury food over time is a crucial challenge
The global luxury foods market is challenged by the difficulties faced by product and service providers in maintaining the perceived value of the luxury product. The rising access to information and changing consumer trends can lead to luxury foods being perceived as common products with limited value to offer. Businesses investing in luxury food must continue striving to maintain or improve the overall value of the product being served to enjoy the benefits of the luxury foods segment.
Luxury Foods Market: Segmentation
The global luxury foods market is segmented based on end-user, type, and region.
Based on end-user, the global market segments are small food chains and high-end restaurants. In 2022, the highest revenue-generating end-user was the high-food segment. Luxury food is served in elite restaurants or dining facilities that dedicate years of craft to perfecting the production of luxury food. For instance, only 37 restaurants in the United States are authorized to sell the extremely rare Kobe beef. Furthermore, the price of luxury food can only be justified when it is sold in high-end fine dining since the cost can be covered. Small food chains typically sell everyday items at reasonable prices.
Based on type, the global market is divided into vegetarian food, poultry, pork, meat, seafood, and others. In 2022, the highest demand was observed in the seafood segment. Some of the most expensive seafood luxury offerings are fugu which is also known as pufferfish and oysters. The latter offers a unique texture and salty taste. Raw oysters are expensive and they can also be cooked along with other products for an improved experience. One oyster may cost around USD 5 to USD 7 depending on the market conditions.
Luxury Foods Market: Regional Analysis
North America dominates the market growth rate and will continue the trend
The global luxury foods market is currently dominated by North America. During the projection period, the same trend is expected. The primary nations leading the regional growth are Canada, Mexico, and the US. In 2022, Mexico witnessed the highest demand for luxury foods. As per a recent survey, more than 45% of Mexican citizens were reported to be planning to buy luxury foods in the coming years. Canada and the US have high per capita income. The US, for instance, is a world leader in terms of economic growth. It is home to a large number of people and influential celebrities with high net worth.
As of 2022, almost 7% of the American population was counted in the list of dollar millionaires. Furthermore, luxury products including food items enjoy a considerable following in the US market. Europe is an important region in terms of the culinary world. European nations are registering high revenue generated from the regional food industry. Moreover, the presence of a fine dining culture in Europe aids regional market expansion. Asia-Pacific is one of the fastest-growing regions. China, South Korea, Japan, and India are the highest contributors to regional revenue. India, for instance, is reporting a sharp growth in the acceptance of luxury food products.
Luxury Foods Market: Competitive Analysis
The global luxury foods market is led by players like:
- Ladurée
- Fauchon
- Pierre Hermé
- Godiva
- Dom Pérignon
- Valrhona
- Kaviari
- Fortnum & Mason
- Alain Ducasse Chocolat
- Teuscher
- Beluga Group
- Petrossian
- Venchi
- Per Se
The global luxury foods market is segmented as follows:
By End-User
- Small Food Chains
- High-End Restaurants
By Type
- Vegetarian Food
- Poultry
- Pork
- Meat
- Seafood
- Others
By Region
- North AmericaThe U.S.Canada
- EuropeFrance The UKSpainGermanyItalyRest of Europe
- Asia PacificChinaJapanIndiaSouth KoreaSoutheast AsiaRest of Asia Pacific
- Latin AmericaBrazilMexicoRest of Latin America
- Middle East & AfricaGCCSouth AfricaRest of Middle East & Africa
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