luxury food service stands at the forefront of this dynamic industry transformation.  Fflur Roberts, head of luxury goods at Euromonitor International, attributes this surge to a heightened consumer desire for “smart splurges” in the post-pandemic era.  Hong Kong and Singapore lead this trend, showcasing significant year-on-year growth in the experiential luxury segment, further solidifying their status as key players in the Asia-Pacific luxury market. The luxury landscape, however, extends beyond gourmet dining. The luxury hotel sector in Japan is set to witness a staggering 77.2 per cent growth in 2023, marking the highest demand within the region.  Moreover, Hong Kong has reclaimed its position as the leading luxury market in per capita expenditure on luxury goods, and the market is expected to return to pre-Covid-19 sales levels by mid-2024.  These trends underline a broader shift in luxury consumption patterns, where personal and experiential luxury intertwine, reshaping the industry’s future trajectory. The state of affairs “Investment in luxury, particularly leather goods and timepieces, is anticipated to surge as an alternative asset class. Moreover, the prospect of utilising these goods for income generation through rental platforms or resale adds another dimension to their appeal,” Roberts told Inside Retail. At a global level, she said, this continued bounce-back is largely due to Asia Pacific (predominantly China) and the US. That said, recovery in the region is uneven and remains uncertain due to rising interest rates and inflation, supply chain issues, the cost of living crisis and the war in the Ukraine. “Undoubtedly, the luxury market has exhibited remarkable resilience and resurgence during the evolving economic landscape. Despite the adversities triggered by the pandemic and the ongoing cost-of-living crisis, the luxury sector has showcased its adaptability and capacity to prosper amid uncertainty,” she added. Roberts noted that a significant factor that will help to continue driving luxury sales is the robust demand from affluent consumers. Wealthy individuals and high-net-worth households have witnessed substantial growth in their financial positions, especially in the emerging markets.  “Whilst inflationary pressures are expected to ease by the end of 2023 with a further slowdown expected in 2024, significant economic uncertainty for many consumers will continue limiting sales of big-ticket items such as luxury goods, especially in Western European markets,” she said. The Hong Kong marketplace Roberts pointed out that Hong Kong reclaimed its position as number one in per capita spend on luxury goods this year, and is expected to return to its pre-Covid-19 level of sales by mid-2024. Over the past few years, owing to political instability in 2019, followed by its stringent zero-Covid strategy, sales of luxury goods have been under intense pressure and Hong Kong lost its leading position as number one in per capita spend on luxury goods to Switzerland and the UAE.  The easing of restrictions towards the end of 2022 meant that affluent consumers residing in the country, and those visiting, were able to resume spending on luxury again, hence the rebound in sales and a healthy uptick in per-capita spending on luxury goods. “Hong Kong is projected to sustain its leading position in per capita expenditure on luxury goods throughout the review period from 2024 to 2028, as the country adapts to a new normal and experiences a steady influx of Chinese tourists from the mainland,” she stressed. Living in the moment Roberts said that the pandemic has left many consumers yearning for real-life experiences and normalised routines.  Many consumers today have decided to live more in the moment, with over 50 per cent of consumers saying they want to enjoy life and not plan for the future and almost 30 per cent of consumers saying that they plan to increase their spending and visits to restaurants in 2023. “The trend transcends industries, particularly those manifesting in luxury travel and hospitality. This is further giving way for luxury fashion brands to side-step into this area by venturing into luxury hospitality with branded cafés, restaurants, food and wine pop-ups and of course luxury hotels, spas, wellness and residents,” she elaborated. Global dining revenue from luxury and fashion brands is set to grow by an impressive 19 per cent by the end of 2023 with an additional 19 per cent sales growth set for the next five years. “This growth will mainly be driven by consumers looking for novel experiences with good examples in Hong Kong coming from Tiffany & Co’s café, Ralph, Vivian Westwood, Prada, Kitzune and Agnes B,” she said. This trend is particularly evident among the Gen Z demographic. Roberts noted that she has seen huge growth in luxury and fashion brands diversifying into “lifestyle” areas such as homewares, soft furnishings, decor, home fragrances and cleaning products as a means of making full use of untapped revenue and boosting brand equity but also as a way of building stronger relationships with customers.