A new report highlights how luxury jewelry, alongside other premium goods and travel experiences, is poised to drive significant growth in China's luxury market in 2025. Released by MDR Insights (MDRi), the 2025 China Luxury Consumer Forecast provides a detailed analysis of consumption trends across mainland China and Hong Kong.
Mainland China's Growing Affinity for Premium Experiences
The report identifies key drivers behind the anticipated surge in luxury consumption:
- Experiential purchases: Nearly 60% of consumers plan to increase their budgets for luxury travel.
- Domestic brands and sustainability: Chinese shoppers are increasingly drawn to innovative, homegrown brands that prioritize eco-conscious practices.
In 2024, mainland China's luxury market demonstrated robust growth, with annual per capita spending reaching ¥234,500 (approximately $32,190)—a 7% year-over-year increase. Consumption in second-tier cities grew by an impressive 22%, surpassing first-tier cities and underscoring the broadening reach of luxury goods.
Hong Kong's Cautious Luxury Buyers
The sentiment in Hong Kong's luxury market remains more reserved:
- Over 10% of consumers indicated plans to cut back spending on various luxury categories.
- Average spending increased moderately by 3% in 2024 to HK$223,900 (about $28,817), with notable growth in high-ticket items like jewelry (64%) and handbags (66%).
The Luxury Jewelry Landscape
The report sheds light on shifting consumer preferences in luxury jewelry:
- Mainland China: 55% of respondents favor gold jewelry, while 52% prefer diamonds. Brand recognition plays a significant role in purchase decisions.
- Hong Kong: 61% of buyers are partial to diamond jewelry and emphasize craftsmanship in their choices.
Across both regions, resale value is an increasingly important factor influencing luxury purchases.
Top brands in the Chinese market include:
- Cartier
- Chanel
- Bulgari
In Hong Kong, Cartier, Chanel, and Gucci dominate consumer preferences.
Gen Z and the Future of Luxury
Younger consumers, especially Generation Z, are redefining luxury consumption patterns, placing emphasis on:
- Personalization
- Health and sustainability
- Unique experiences over material possessions
This generation's demand for meaningful connections and innovative Chinese brands is reshaping the luxury industry. As noted by MDRi CEO Cheng Wenliang:
“Gen Z is not only reshaping luxury consumption in China but also transforming the global industry. Traditional norms are evolving, and brands must adapt to these dynamic expectations.”
Insights from the 2024 Study
The survey, conducted between April and May 2024, involved 1,500 luxury consumers in mainland China and 500 in Hong Kong, all of whom spent at least ¥50,000 (or equivalent) on luxury goods in the past year. These findings reflect a deep shift in luxury preferences and highlight the expanding influence of China's next-generation consumers.