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 Wednesday by consulting firm Bain and Company. 

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 262 billion euros.

"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 lustre," said Claudia D'Arpizio, a Bain partner and lead author of the study, in a press release.

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.

Sales are likely to have jumped by 15 percent in China to 20 billion euros. Purchases by Chinese tourists abroad also increased.

Online sales of luxury items are also increasing, soaring by nearly a quarter.

Bain estimates that a quarter of total sales of personal luxury goods will take place online by 2025.

It expects the personal luxury segment to grow by 4 to 5 percent annually over the next three years, reaching 295-305 billion euros by 2020.