Luxury market continues to grow in 2014

The luxury market segment will continue to increase this year, albeit at a slower pace than the previous growth injection

witnessed between 2009 and 2012 which saw luxury goods sales increase to reach double digits.

On Monday, the Worldwide Luxury Industry 2014 forecast was revealed by Italian firm Fondazione Altagamma, in collaboration with international analysts such as Bain & Co, Citigroup, Credit Suisse, Nomura and Goldman Sachs. The update reaffirmed the global slowdown of the luxury segment, but also confirmed a sluggish growth.

The luxury apparel section is set to grow 5 percent this year, but hard luxury divisions such as the jewelry and watches segment along with luxury leather and accessories goods will grow 6 percent, the most out of all the categories in 2014.

Luxury spending is set to grow the most in the Middle East this year, 8 percent, followed by 7 percent in Asia, which was pulled down by waning sales in Chinese due to a increasing number of consumers purchasing luxury products abroad rather than in their own market.

Despite London being home to some of the world's highest net-worth individuals, luxury spending in Europe is only set to increase 4 percent this year, which is less than the 6 percent growth set to occur in the Americas.

In 2013, the luxury goods market grew 6.5 percent at constant exchange and 2.2 percent at current exchange to 217 billion euros. Despite strong competition from accessible luxury labels, margins are predicted to grow 7 percent in 2014 compared to the year before.