British luxury sector may hit more than 50 billion pounds

The British luxury market could nearly double to as much as 57 billion pounds by 2019, according to a new report by Frontier Economics commissioned by Walpole, the British luxury trade alliance that counts Burberry and Harrods as members.

The report found that the luxury market contributed 32.2 billion pounds in 2013, making up 2.2 percent of the country’s economic output, and Frontier predicts that the sector will continue to grow rapidly, and may reach between 51.1 billion pounds and 57 billion pounds by 2019.

This rapid growth will also increase employment figures, currently the luxury industry employs 113,000 people according to Walpole, this is forecast to grow to between 158,000 and 177,000 by 2019, according to the report.

The report defines British luxury industries according to 12 classifications including: designer apparel and footwear, luxury accessories, luxury jewellery and timepieces, high-end beauty and personal care, fine wines and spirits, as well as the production of high-end cars. It found that these industries are strongly export-orientated with 78 percent of production, in value terms, destined for overseas markets.

In 2013, luxury exports accounted for 25 billion pounds, which accounted for around 4.3 percent of total UK merchandise exports. The year-on-year growth of British luxury products in 2013 was around 12.1 percent, helped by strong performances from the luxury car sector.

UK luxury sales may reach 57 billion pounds by 2019

Michelle Emmerson, chief executive of Walpole, said: “We are delighted by the findings of the Frontier Economics report revealing the truly significant value of the British luxury industry and its contribution to the UK economy.

“With well over half the produce destined for overseas markets over the year, we are proud that the British luxury industry pioneers as an export-orientated sector. We are thrilled to sit at the heart of an industry so valuable to the economy, and with such a promising growth trajectory.”

Commenting on the luxury industry, Ed Vaizey, Minister of State for Culture, said that it represents a ‘business card for Britain’, adding: "The UK luxury goods sector is hugely successful; it boosts Britain's exports, is a creator of jobs and apprenticeships, and a major contributor to the economy.

“The brands represent the core values of luxury - creativity, innovation, design and the highest-possible quality and are recognised throughout the world. British luxury brands inspire the next generation of designers, businesses and cement the reputation of ‘Made in Britain’.”