In 2025, the global luxury goods market is projected to remain flat at approximately €1.44 trillion ($1.56 trillion) following a contraction in 2024, as reported by Bain & Altagamma. The luxury sector has faced significant challenges due to economic downturns, changing consumer preferences, and geopolitical issues, particularly related to U.S.-China trade tensions. In China, the largest luxury market, spending has declined amid economic cooling but showed signs of stabilization later in the year.
Looking ahead, the industry anticipates a rebound in 2026, with growth expected between 3% and 5% driven by renewed demand in emerging markets and an adapted strategy from brands. Notable companies positioned for this recovery include Kering, Richemont, and Burberry, which are expected to improve sales as consumer confidence in luxury goods rebounds, especially in China.
Emerging markets, particularly the Asia Pacific, are predicted to account for 39.8% of global luxury consumption by 2025. Companies are recalibrating their pricing strategies and focusing on local market preferences to engage a younger, affluent consumer base that is gradually returning to discretionary spending.
