Despite economic uncertainty, geopolitical tensions, and changing consumer behaviour, the global luxury industry is showing signs of stabilization. According to the Bain & Company–Altagamma Luxury Goods Worldwide Market Study 2026, global luxury spending reached €1.443 trillion in 2025, with the personal luxury goods market expected to return to moderate growth in 2026. Jewellery was the top category for global luxury spending in 2025

The report highlights a fundamental shift in luxury consumption—from ownership to meaningful experiences, AI-driven shopping journeys, and greater demand for personalization. Brands that succeed will be those that strengthen cultural relevance, embrace AI, and deliver emotionally engaging experiences.

Key Highlights

• Global luxury spending reached €1.443 trillion in 2025 and is projected to grow 0–2% in 2026.
• The personal luxury goods market stood at €358 billion in 2025 and is expected to grow 2–4% in 2026, reaching €365–373 billion.
• Luxury experiences continue to outperform tangible goods, reflecting consumers’ preference for memorable experiences over ownership.
• Jewellery is the strongest-performing luxury category, followed by apparel, eyewear, and fragrances.
• Leather goods, footwear, and cosmetics remain under pressure, though recovery is gradually emerging.
• The Americas, led by the US, are driving growth, fuelled by younger consumers and expanding upper middle-class spending.
• Europe and the Middle East continue to weigh on market performance due to weaker tourism and geopolitical uncertainty.
• China is showing cautious recovery, with online luxury sales rising 25–35%, driven more by fashion than status-led purchases.
• Around 60% of luxury brands are now outperforming last year’s results, indicating improving market resilience.
• Nearly 50% of luxury shoppers consult the second-hand market before purchasing new products, underlining the growing importance of resale.
• Artificial Intelligence is transforming luxury retail, with half of consumers already using AI during their purchase journey for discovery and product comparison.
• More than 80% of the luxury market’s value is represented by brands that actively invest in sports sponsorships to build cultural relevance.
• Immersive luxury experiences—including bespoke travel, fine dining, and local cultural experiences—continue to gain popularity.
• Consumers increasingly associate luxury with personal fulfilment and meaningful living, rather than status or social recognition.
• Bain identifies three priorities for luxury brands:
  • Deliver immersive, experience-led luxury.
  • Build stronger cultural relevance across diverse consumer groups.
  • Leverage AI for personalization and co-creation with customers.

The luxury industry is entering a new phase where growth will be driven less by products and more by experiences, emotional connections, AI-enabled personalization, and authentic brand meaning. While macroeconomic and geopolitical challenges remain, brands that adapt to evolving consumer expectations are well positioned for sustained growth.