HE luxury sector It recorded a turnover of up to 17,000 million euros in Spain in 2022 and is projected to grow at an annual pace of 7-9% through 2027, reaching between 23,000 and 27,000 million euros. This outlook comes from the Círculo Fortuny report prepared with the consulting firm McKinsey & Company. The expansion in this premium segment is largely explained by the rising importance of experiences, which now accounts for more than half of the market share (51 percent versus 49 percent for goods and personal belongings).
The upper class contributes about 0.5% to 1% of Spain’s GDP through its sales. When exports are added, the share rises to around 1%, with exports totaling 20,000 million euros and growing about 4% versus 2017. This indicates growing international recognition, especially in Europe and the United States as primary target markets. On a global scale, the report places Spain behind rivals like France and Italy, capturing roughly 4.5% of Europe’s luxury market (about 370,000 million euros) and 1% of the worldwide market (about 1.4 billion euros), roughly double Spain’s own share.
Spain’s cultural and creative strengths are positioned to stay strong and expand in the coming years, reinforcing the country’s role as an economic driver. The shift toward experiences offers a significant differentiator in the global high-end landscape and presents a major growth opportunity that can be leveraged as a global differentiator, according to a press release summarizing the findings.
The current growth of the luxury sector is supported by rising domestic demand, which has climbed by seven percentage points since 2019, with notable gains in fashion, accessories, leather goods, and jewelry. Tourism levels in 2022, however, remained about 6% below the pre-pandemic year, affecting a sector that is highly sensitive to tourist flows.
Experience-focused sales
Strong performance in experiences such as haute cuisine, hospitality, wellness, and events has strengthened over the past five years, representing more than half of the Spanish luxury market and growing at a faster pace than tangible goods. Haute cuisine and hospitality rose by 13%, hospitality and wellness by 11%, and events and entertainment by 31%, with these experiences collectively accounting for 8.6 billion euros in value.
Key drivers include better information about new customer segments, enhanced brand positioning, the promotion of unique products and services, and geographic expansion by scale, according to a partner at McKinsey & Company.
In the realm of personal items, there are notable exceptions such as cosmetics and perfume, which contributed to a slight decrease in overall sales to 8 billion euros. Since 2019 this category has grown by 8%, while fashion, accessories and leather goods saw a 10% decline in revenues; jewelry declined by 6% and furniture and interior decoration by 3%. Looking ahead to 2027, all luxury, experience, and personal goods categories expect growth, with hospitality and wellness leading at up to 14%, events and entertainment at 10%, cosmetics and fragrances at 10%, haute cuisine and hospitality at 8%, and furniture and interior decoration at 8%.
Despite global economic fluctuations, the Spanish luxury sector shows bright spots on the horizon. Positive trends point to higher standing as a reference for solid growth in Spain. Achieving this will require industry leaders to push internationalization and create ecosystems within the domestic market, establishing local luxury hubs at scale, notes a senior partner at McKinsey & Company.
Tourist markets
The report highlights three key regions as major opportunities for luxury consumption by tourists: China, the United States, and the Gulf countries. In the case of China, tourists account for 13% of tax-free transactions, but Spain concentrates 30% of their spend, making this demographic highly important. Preferences include appreciation for local brands, high craftsmanship and design, and shopping in physical stores at the destination, along with values such as prosperity and sustainability rising in importance.
Regarding the United States, tourist arrivals rose 68% from 2017 to 2022, representing 7% of total tax-free purchases. The Gulf countries (Saudi Arabia, Bahrain, Kuwait, Oman, United Arab Emirates, and Qatar) represent the fastest-growing tourism segment, with around one million high-end consumers. While enjoying products and experiences, these visitors seek exclusivity and show strong interest in jewelry items.