Chinese people spent 1.04 trillion yuan ($145.65 billion) on luxury goods in 2023, accounting for 38 percent of global luxury goods market, ThePaper reported on Sunday, citing China Luxury Report released by Yaok Institute.

China's luxury goods industry is becoming a core force driving consumption growth in the country, said Zhou Ting, head of the Yaok Institute, who is also the chief researcher of the report.

China's luxury goods market witnessed 11 percent growth in 2023, reaching 607.7 billion yuan, accounting for about 22 percent of the global luxury goods market.

The proportion of domestic luxury goods consumption by Chinese people increased by 1 percent to 58 percent in 2023, while the proportion of overseas luxury goods consumption by Chinese people reached 42 percent.

The online transaction volume of luxury goods will exceed 60 percent in the next 3-5 years, according to a projection by Yaok Institute.

Shanghai, Beijing and Sanya in Hainan province continued to lead the list of China's core cities for luxury consumption in 2023.

Haikou, capital of southern China's Hainan province became the fastest growing city of luxury consumption in China in 2023, with a growth rate of 89 percent to 8.9 billion yuan.

The report predicts that the growth rate of China's luxury market is expected to be around 12 percent in 2024, which will be slightly equal to the growth rate of the global luxury goods industry.