The UK’s luxury industry is making significant strides, contributing a remarkable £81 billion (approximately $102.7 billion) annually to the nation’s economy, according to a report by Walpole titled ‘Luxury in the Making’. Conducted in collaboration with Frontier Economics, this research highlights the sector’s vital role, accounting for 3.7 per cent of the GDP. Over the past five years up to 2022, the luxury sector has seen a growth of 69 per cent, now supporting 454,000 jobs directly and indirectly in various fields such as design, digital, high-tech manufacturing, and heritage crafts.
This upward trajectory comes in the face of several macroeconomic challenges, including Brexit, the COVID-19 pandemic, supply chain disruptions, and soaring energy costs. Despite these hurdles, the luxury sector’s robust growth continues, although there’s a caveat from Walpole, the luxury sector’s representative body. The organisation warns that without necessary tax reforms and changes to intellectual property laws, this growth could potentially plateau.
Looking ahead, Walpole forecasts…
