After the market shrivelled by some 8 percent in 2009, this year sales of expensive jewellery, champagne and other fancy goods from Germany and elsewhere are expected to increase by 4 percent to €158 billion, the study by consulting firm Bain & Company said.

“After three painful quarters the customers are slowly starting to shop again,” said company branch expert Rudolf Pritzl.

Most of the growth will come from shoppers in Asia who buy particularly pricey accessories, shoes and leather goods, the company found.

The Chinese market is among the fastest to expand, with a growth rate of 15 percent expected this year.

Returning consumer trust in the market is also fuelling the growth trend, the study said.

“The temporary phenomenon of ‘luxury shame’ is fading away in the mature markets,” Pritzl said. “The attractiveness of luxury brands is returning simultaneously.“

Many of the bigger luxury brands such as Mercedes, BMW, and Porsche were better prepared to navigate the recession, the study found. While only two percent of the 220 companies included grew by more than five percent in 2009 – these made up 10 percent of the total market.

“While the big luxury brands will be able to expand their share of the market, 2010 will rather be a year many companies will be forced to secure their liquidity through mergers and takeovers,” Pritzl said.