People swarm in a shopping center in Hong Kong, south China, Nov. 13, 2015. [Photo: Xinhua/Ng Wing Kin]

A recent study shows that China now accounts for nearly half of the world's luxury consumption so far this year, but Chinese consumers do most of their luxury shopping outside of the country.

A Beijing-based consultancy Fortune Character Institute said in a report on Tuesday that Chinese are expected to spend some 117 billion U.S. dollars on luxury goods this year, accounting for 46 percent of the world's total.

However the report also shows that some 78 percent of all Chinese luxury consumption this year happened outside of China.

That figure is up 12 percent from last year.

The increased buying overseas has led to a 1 percentage drop in China's luxury market share.