South Korea's Luxury Market Sees Rapid Growth, Driven by Millennials and Gen Z
The luxury market in South Korea is experiencing rapid growth, largely driven by the consumption choices of millennials and Gen Z. According to a study published by IMARC Group, the market's estimated value of $5.5 billion in 2024 is expected to surge to $8.3 billion by 2033, with an average annual growth rate of 4.7%.
These generations, which represent a significant portion of consumers, are characterized by a marked appetite for high-end fashion, premium cosmetics, and exclusive accessories. For them, luxury is not only a means of personal expression but also a symbol of social status.
The digital landscape has amplified this dynamic. With social media, e-commerce, and virtual experiences, young buyers are favoring brands that offer personalized and innovative services. Gen Z, being hyperconnected, is embracing virtual try-ons and interactive campaigns, prompting luxury houses to invest heavily in immersive technologies.
Another key element is the growing importance of sustainability. Millennials and Gen Z are increasingly turning to brands that adopt ethical and eco-friendly practices, such as responsible materials and transparent supply chains. This demand is reshaping the priorities of luxury players, who must now balance exclusivity and responsibility to seduce a discerning and environmentally conscious clientele.
Thus, in South Korea, the luxury market is transforming under the direct influence of these young generations, who are driving consumption where identity, digital experience, and ethics converge.
