Global luxury is holding its ground in 2025, but the market luxury brands thought they knew is being rewritten in real time.
A new Bain & Company and Altagamma study shows that spending is stabilizing, even as consumers pivot sharply toward experiences, value channels and new regional hubs—and margins sink back to levels last seen in 2009.
and +1% at constant exchange rates). That relative stability comes despite persistent economic and geopolitical uncertainty, suggesting demand at the top end remains structurally strong even as mid-tier shoppers pull back.
Within that total, personal luxury goods —the core fashion, leather goods, watches, jewelry, beauty and accessories categories—are forecast at around €358 billion in 2025 , down about 2% at current exchange rates compared with €364 billion in 2024 and €369 billion in 2023 , indicating a mature, pause phase after the post-pandemic boom.
Ultra-wealthy customers are still supporting demand for high-end pieces, while aspirational consumers are becoming more cautious, especially in discretionary categories. From conspicuous consumption to “experiential indulgence” The headline story in this year’s report is a “tectonic shift” from products to experiences .
Consumers are increasingly choosing luxury hospitality, cruises, fine dining, travel activities and wellness-led experiences over buying additional high-ticket goods such as luxury cars, classic leather goods or formal apparel. Bain and Altagamma frame this as a move away from traditional “conspicuous consumption”…
