How much are HNW audiences investing in luxury home interiors?
Luxury home interiors is a big area of focus for HNWs. In 2022, according to The Luxury Institute’s 2022 Global Luxury Consumer Insights Report, the average spend by HNW audiences on their home interiors was around $600,000. This is significantly higher than in 2021, when it averaged around $400,000.
Looking at the breakdown of spend on luxury home interiors in 2022, we’ve identified a number of trends that are likely to continue to grow, especially with ‘the great wealth transfer’ that’s anticipated over the next 10-15 years. With a predicted $68 trillion inheritance expected to be passed down to Millennials and Gen Z, the next generation is expected to become the largest and wealthiest generation in history.
So what will the next generation of HNW audiences be looking for from luxury home interior brands?
Advanced home technologies
Automating the home for ultimate convenience and comfort is a trend that’s set to continue with the growing advances in smart home technology.
In 2022, HNWs spent around $50,000 on automated tech and smart products, a figure we predict will rise as luxury interior designers and architects look to incorporate these technologies into their offering.
There’s also been a large step (or a Giant Leap) towards eco-friendly and sustainable home interiors. This area did not see huge levels of spending from HNWs in 2022 – just $25,000.
However, once again, with the younger demographic on the horizon, this trend is only set to continue. A good example of this is the former Dragon and interior design entrepreneur, Kelly Hoppen, who has been continually reducing her homes carbon footprint by investing in insulation, highly efficient electrical products, and using renewable energy, such as solar.
Wealth audiences have the means to install bespoke products, unique designs, and specialised high-end decor to create their desired living space. In 2022, the HNW audience spent $325,000 on artwork, decor, lighting, and textiles; we predict this will continue to be a big focus into 2024.
Luxury furniture continues to take the lion’s share of budget when it comes to luxury home interiors. Whether it’s the experience of drifting to slumberland on a high-end Savoir bed or the creation of unique built-in wardrobe rooms, furniture is still very much the centrepiece for luxury audiences, spending upwards of $200,000 on average in 2022 – a figure we predict will increase.
We’ve seen a general upward trend in spending in the overall luxury goods market (consumer spending on luxury goods is expected to reach $348 billion in 2023), and this growth is only set to continue.
Overall, even affluent and wealthy audiences will continue to invest heavily in their home interiors, with a particular focus on tech, home automation, and sustainable products as the younger audience seeks to become carbon neutral as well as adopt the latest technology.
Increased HNW Investment in home wellness post covid
According to the Global Wellness Institute, the global wellness market is expected to reach $4.5 trillion by 2025.
With advances in wellness technology and the available resources of HNW and UHNW audiences, we expect to see a rise in home fitness and wellbeing spaces equipped with a multitude of personalised smart features.
Some recent examples include bespoke ergonomic furniture, home ‘smart gyms’ that monitor your physical changes in real-time, and advanced air and water filtration systems to ensure the best nutrition alongside the removal of allergens, pollutants, and contaminants.
We’ll be keeping a keen eye on how this spending trend develops in 2024. Follow us on LinkedIn to keep up-to-date with our news or contact us to discuss how our digital marketing services can help your luxury interiors brand to drive growth in this evolving market.