Tourists check out in a duty-free shopping mall in Sanya, South China's Hainan Province on January 1, 2024. Photo: VCG

China's luxury market is expected to grow at mid-single-digit in 2024 following an overall rebound last year, while Chinese luxury consumption is expected to reach 35-40 percent of the world's total by 2030, according to a report released by global management consulting firm Bain & Company on Thursday.

In 2023, China's luxury market saw a 12 percent year-on-year increase, recovering from a decline due to the pandemic, led by all categories including fashion, lifestyle and jewelry, the report noted.

Duty-free sales in South China's Hainan Province grew by about 25 percent in 2023 year-on-year, thanks to a recovery in domestic travel and stimulus measures implemented by the government, according to the report.

Hainan, a renowned tourist destination, now has 12 offshore duty-free stores. Since the beginning of 2023, with the province introducing a number  measures to boost the recovery of duty-free consumption, including simplifying purchase procedures, issuing duty-free consumption coupons, and holding duty-free shopping promotions.

As Chinese overseas tourism now returns to near pre-Covid levels, Bain expects domestic luxury spending to decrease to 70 percent in 2023. Notably, the recovery of Chinese tourists' luxury spending in Europe and Asia has been significant.

"Another year of recovery for Chinese overseas luxury consumption, particularly in Asian destinations, is expected," Xing Weiwei, a Hong Kong-based partner at Bain & Company, was quoted as saying in a press release sent to the Global Times.

In 2023, Chinese luxury consumption is estimated to account for approximately 22-24 percent of the world's total, with consumption in the Chinese mainland comprising about 16 percent, it said.

By 2030, Chinese luxury consumption is expected to reach 35-40 percent of the world's total, with consumption in the mainland reaching 24-26 percent, solidifying its position as one of the leading luxury markets globally, according to the report.