In 2021, COVID-19 continued to impact Japan. In areas in which the number of COVID-19 cases was high, such Tokyo and Osaka, states of emergency were declared by the government for most of the year, and August 2021 recorded the highest number of COVID-19 cases ever in the country.
Despite COVID-19, some players remained positive about the future growth prospects for experiential luxury in both 2020 and 2021, with new openings in both luxury hotels and luxury foodservice. In luxury foodservice, Emporio Armani opened a café in Osaka in November 2020, whilst in October 2021 Gucci opened a restaurant in Ginza in Tokyo, offering traditional Italian cuisine and also dishes inspired by Japanese cuisine, such as Parmigiana Ramen.
COVID-19 led players in experiential luxury to develop new offerings for consumers. For instance, with the prolonged impact of COVID-19 and consumers avoiding unnecessary outings and maintaining home seclusion, luxury foodservice players such as Bvlgari and Armani began to offer luxury take-out boxes, often referred to as bento boxes (lunch boxes), following the lead of players at the lower-end of the market.
Dynamic double-digit growth is expected for experiential luxury in Japan in the first couple of years of the forecast period, as pent-up demand is released as COVID-19 is expected to have less of an impact, with sales set to return to the pre-pandemic level in 2023. Along with vaccination, the new outlet openings that continued in luxury foodservice and luxury hotels in 2020 and 2021 will support growth, with Japan showing potential for luxury brand players.
Initiatives by luxury players to add even more elements of luxury into experiences are expected to increase in the future, supplementing each other to gain awareness and drive momentum in experiential luxury. Examples of this have already been seen.
In the early forecast period, it is expected that travel restrictions will be lifted in many countries as COVID-19 settles down around the world and vaccinations are rolled out. Japan is still considered a popular destination globally, and the travel industry is likely to recover quickly when the travel bans are lifted and restrictions are eased, and people have more freedom to travel both globally and domestically.
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Understand the latest market trends and future growth opportunities for the Experiential Luxury industry in Japan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This is an aggregation of Luxury Hotels and Luxury Foodservice.
This report originates from Passport, our Experiential Luxury research and analysis database.
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