The five percent growth in the overall market is likely to be matched in the personal luxury goods segment, which includes clothing, watches and leather goods, to reach around $309bn.

"We started to see stronger momentum in the first half of the year, and this has continued in recent months allowing the market for personal luxury goods to really regain its luster," said Claudia D'Arpizio, a Bain partner and lead author of the study.

Sales of luxury cars have also shifted up a gear, growing by 6 percent to reach €489bn ($570.35bn).

Europe continues to be the top region for luxury retail sales, with the total expected to rise 6 percent to €87bn ($101.47bn).

Chinese nationals are now accounting for nearly a third of global personal luxury purchases, according to Bain and Company.

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