AS global luxury spending contracts, Africa is emerging as a key market, attracting top brands and outpacing international peers in growth. While the global luxury consumer base has shrunk by 50 million people over the past two years, Africa is projected to add millions of new buyers by 2030, solidifying its role in the industry’s resurgence.
According to Michael Zahariev, co-founder of Luxity, Africa’s premier pre-owned luxury reseller, the continent’s economic momentum and shifting consumer preferences will fuel luxury growth in 2025 and beyond.
Economic growth fuels luxury spending
Africa’s rising purchasing power is a major driver of this expansion. The African Development Bank forecasts a 4.1 percent GDP growth rate for 2025, surpassing the International Monetary Fund’s global projection of 3.3 percent. Inflation, which stood at 17.8 percent, is expected to drop to 13 percent, increasing consumer confidence and spending.
Despite higher disposable income, Africa’s affluent consumers remain financially conscious, increasingly turning to pre-owned luxury goods. Luxity’s Q3 2024 sales grew by 34.7 percent year-on-year, far exceeding the global luxury market’s 7 percent growth rate.
Social media shapes buying trends
Africa’s luxury shoppers are heavily influenced by social media, with 58 percent of buyers choosing products based on their appearance in online photos—compared to 44 percent globally. This trend is evident in high-profile sales, such as a pre-owned Hermès Birkin bag selling for R500,000 ($27,218) in under 30 minutes.
Global brands eye Africa as luxury market shifts
As China’s luxury market slows, international brands are turning to Africa for growth. Major players, including Louis Vuitton, Bottega Veneta, and Gucci, are adjusting their global strategies, with some scaling back in Asia while expanding in Africa.
Luxury watch brand Rolex is set to open its first mono-brand store in South Africa’s Sandton City, part of a broader shift toward premium retail experiences. While the global market for mono-brand stores is shrinking by 1 to 4 percent, Africa is bucking the trend, with Cape Town developing a new luxury shopping wing at the V&A Waterfront to meet rising demand.
Africa: a market to watch
With traditional luxury markets experiencing stagnation, Africa’s high-end sector is rapidly evolving. The continent’s affluent consumer base is expanding, and demand for premium brands is rising. Luxury retailers that adapt to Africa’s unique market dynamics will position themselves at the forefront of the industry’s next phase.
