After a year of stagnation the luxury market has returned to growth and will likely set a new record of 1.2 trillion euros ($1.4 trillion) in 2017, said a study released by consulting firm Bain and Company.

The 5 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 262 billion euros.

Sales of luxury cars have also shifted up a gear, growing by 6 percent to reach 489 billion euros.

Europe continues to be the top region for luxury retail sales, with the total expected to rise 6 percent to 87 billion euros.

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