The global luxury industry slows its decline, but it is still stagnating. The consumption of high-end goods faces the end of 2025 with a stabilization, after the last few years of adjustment. According to Altagamma forecasts, the global luxury industry will close 2025 at the same levels as in 2024, but already looking towards recovery.
Global consumer spending in the luxury industry segments will reach €1.44 trillion in 2025, which is almost similar to last year’s level (between 1% more and 1% less at current rates than in 2024).1 to 1% lower at constant exchange rates), “with a sequential improvement trajectory expected to continue into next year,“ according to the annual Bain and Altagamma Luxury Goods Worldwide Market Study.
The stabilization of consumption also comes with a structural shift in the sector, with consumers shifting their preferences to second place to the purchase of physical goods. Thus, what is driving luxury consumption worldwide are categories such as cruises or gastronomy, away from traditional luxury items such as automotive or fashion.
The report “highlights a persistent and crucial trend among consumers around the world, who prefer experiential pleasure to past trends of conspicuous consumption as new status symbols, pivoting towards wellness, connection and personal reward”. Ultra-rich shoppers continue to sustain demand for high-end luxury goods, but aspirational consumers have retreated
Forecasts are for the global personal luxury market to remain broadly flat this year compared to last, with a projected 2025 value of €358 billion (compared to €369 billion in 2023 and €364.364. billion in 2024), down around 2% this year at current exchange rates and stable at constant rates, “indicating maturity rather than new momentum following the post-pandemic upturn in this market.“
In this regard, the report notes that while ultra-wealthy buyers continue to sustain demand for high-end luxury goods, aspirational consumers have retreated, increasing pressure on traditional luxury.
In this “recalibration” in the personal luxury market, jewelry is currently leading growth, with an expected expansion this year of 4% to 6%, “driven by resilient demand, emotional appeal and the rise of customizable designs.“ Eyewear also continues to perform well, with expected growth of between 2% and 4%. Beauty remains stable, but fragrances continue to be the “most dynamic” subcategory.
The study concludes that “the watch market is characterized by increased polarization, with a boom in high-end pieces, while tariffs and pricing pressures fuel the resale market.“ Apparel remains stable, driven by the strong performance of accessible players. “Leather goods falter, lacking new star bags, but are boosted by fun and ambitious alternatives,“ the report details, while footwear lags behind, “hurt by price sensitivity and competition from sportswear.“
“Overall, accessible luxury fashion is recovering, driven by brands’ success in appealing to consumers looking for more affordable products, reactivating traditional customers and attracting value-conscious Generation Z shoppers,“ notes Altagamma.
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