Wealth-X and Camper & Nicholsons Present: The State of Wealth, Luxury & Yachting

Global Trends for Superyachts, the Ultra Wealthy Revealed in New Report from Wealth-X and Camper & Nicholsons

Only 4,476 Individuals Globally Own Superyachts; 33% of Superyachts Owned by Americans

Wealth-X, the global authority on wealth intelligence, and Camper & Nicholsons, the global leader in luxury yachting activities, have released a first-of-its-kind report on the world’s ultra wealthy and the luxury yachting sector.

The strengths of the two firms in wealth and yachting intelligence power the report, which describes valuable information for prospective and existing charter guests and yacht owners.

The report focuses on the rapidly changing face of luxury, with a new, younger generation of Ultra High Net Worth Individuals (UHNWI) increasingly focused on pursuing rare, tailored experiences over accumulating replicable ‘things.’ In part this is because such uniqueness both confers and confirms high status for those who can secure such experiences.

To understand what unique experiences will be sought out, Wealth-X analyzed data from 211,275 UHNWI – defined as those with a minimum net worth of US$30 million – globally. The data identified three factors that marked these experiences as desirable: time or making every moment count, privacy during the experience and personalization to both meet individual tastes and to provide something truly one of a kind. A superyacht is the ultimate platform of luxury: it is personalized, private and provides access to unique experiences in food and drink, travel and culture and activities and entertainment.

As the pursuit of luxury moves from goods and services to unique experiences, the ultra wealthy are demanding that the returns on their most precious possession, time, are maximized in every way possible. Superyachts provide the pre-eminent platform to do this.

Key findings from the report include:

  • The average value of a superyacht is US$10 million
  • Only 4,476 individuals own a superyacht
  • The top countries for UHNWI superyacht owners are the United States (33%), United Kingdom (11%), Italy (5%), Australia (4%) and Russia (3%)
  • UHNWIs are about 88% of the share of the luxury market for yachts, with an annual spend of US$22 billion

Mykolas Rambus, CEO, Wealth-X commented: “With an average price tag of US$10 million, the superyacht is a luxury item owned and enjoyed by the ultra wealthy. This report identifies the convergence of this segment’s desire for privacy as well as their seeking of new and unique experiences in their travel.”

Paolo Casani, President, Camper & Nicholsons International commented: “The landmark study on the state of wealth, luxury and yachting shows the superyacht industry in a different light from the usual statistic reports; instead it sheds light on how the shifting sands of wealth and luxury affect trends in yachting – something that has never been reported on before. Statistics are, of course, involved and we provide a snapshot of data on the industry’s three segments (new construction, brokerage and charter). This, combined with the wealth of knowledge on luxury markets provided by Wealth-X, provides information that we have no doubt will be extremely interesting for clients and potential clients of Camper & Nicholsons. We are both proud and delighted to be working with the leading experts in wealth intelligence to publish the first Knowledge Report of its kind.”

In a supplement to the report, Wealth-X and Camper & Nicholsons also identified four trends in the yachting industry, including:

  1. Ultimate Luxury vs. Adventure: Growing desire for remote locations such as the Galapagos, Antarctica and Asia, meaning demand for ice-breaking hulls and long range capabilities is on the up.
  2. Innovative Layouts: Today’s yachts are moving away from traditional, compartmentalized layouts toward brighter, open-plan interiors. Also, there is increased attention to the outdoor areas to create a direct, intimate experience of the sea.
  3. New Toys and Entertainment: Alongside standard toys such as jet skis, waterskis and canoes, there is an increasing demand for the latest gadgets such as a jetlev, skibob or hover board. Top-quality cinema rooms are also becoming popular.
  4. Focus on Health and Wellness: In order to not compromise passenger health when aboard, yachts are offering expert personal trainers, nutritionists, therapists and masseurs.

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The State Of Wealth, Luxury & Yachting – Executive summary

Ultra High Net Worth (UHNW) individuals – defined as those with a minimum net worth of $30million – number only 211,955 globally. With just one for every 33,000 members of the general population, it’s an elite club.

A younger generation of wealthy individuals is now transforming the broader luxury landscape that UHNWs have access to. Both inheritance and entrepreneurial wealth accumulation are driving this shifting wealth demographic.

The change is marked by a move from accumulating tangible assets to pursuing rare, tailored experiences. In part this is because such uniqueness both confers and confirms high status for those who can secure such experiences.

To understand what unique experiences will be sought out, we can identify three factors that mark them out as desirable: time for making every moment really count; privacy during the experience; and personalization to meet both individual tastes and to provide something truly unique.

A superyacht is the ultimate platform for luxury, meeting all these characteristics. It is an utterly personalised and incomparably private cocoon, meaning the return on time invested is maximized unlike any other. Furthermore, the yacht platform does this in a myriad of ways:

Privacy & peace – The yacht provides the seclusion and personal attention usually reserved to a private estate or home.

Health & wellbeing – Gyms, spas, swimming pools, Jacuzzis, saunas and beauty salons ensure personally valued routines can be continued on board, avoiding lifestyle disruption and compromise.

Food & drink – Dining is often nothing short of majestic, with service to match. Menus can be simplified or elevated as moods dictate, and personal dietary needs of family and guests effortlessly accommodated.

Activities & entertainment – A large variety of options are available, from beach and seclusion, to cinema rooms, parties and marine activities.

Travel & culture – Travel and cultural sampling have long been a luxury experience and are of course intrinsic to yachting.

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There is a lifecycle to the yachting experience that allows it to return dividends on time invested, in all the above dimensions, and to do so in the past, present and future. From the planning of the boat’s build and the anticipation preceding a sailing or charter (future), to the on board experience and journey itself (present) – and the memories that endure after clients have returned to shore (past), yachting is an experience that extends beyond just the period on board.

Looking forward to the future of yachting, we are guided by some emerging trends:

Ultimate luxury vs adventure – Increasingly, UHNWs want to combine 5 star luxury with adventure, something superyachts are ideally suited to facilitate. Exploring the lesser known cruising grounds of the Galapagos Islands, and the Polar regions on board ice breaking hulls, long range vessels, and various ancillary craft feature among emerging itineraries.

Innovative layouts – The line between indoor and outdoor is being redefined. Large open plan interiors now flow and blend with outside space that is designed to emphasize the sea and outdoor experience.

Imaginative water toys & entertainment – Toys are becoming a primary rather than secondary

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