Luxury is transforming. No longer defined solely by material possessions, it is increasingly shaped by experiences, wellness, and lifestyle integration. This transition is unfolding amid macroeconomic uncertainty, shifting consumer priorities, and generational change – factors that are forcing brands to rethink value creation in an increasingly purpose-driven marketplace.
Experiential luxury moves centre stage
In Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded January-February 2025, over 70% of affluent consumers placed greater value on experiences than material goods. This has accelerated growth in experiential categories such as luxury travel, hospitality, and premium alcoholic drinks, which now outpace the more traditional categories such as personal luxury goods and luxury cars.
Luxury today is about emotional return on investment. Consumers want “hyper-curated” experiences that resonate with their values and passions, leaving them with positive, lasting memories and deeper brand engagement. In this new experiential economy, emotional connection is a form of brand equity.
Values around purpose are also becoming more complex and nuanced. While digital sales and connectivity have been paramount in the modern retail landscape, some argue that this has come at a price to mental health. Despite today’s hyper-connectivity (64% of the global population are digitally connected), many neuroscientists argue that we have never been more disconnected. This paradox is especially visible among younger generations, where rising anxiety is linked to digital overload and a lack of real human connection. But this is more than a demographic trend – it’s a global cultural reckoning, pushing luxury brands to rethink how they deliver value.
Wellness as the ultimate expression of affluence
Wellness has emerged as a powerful status symbol. Health, longevity, and emotional wellbeing are increasingly central to how affluent consumers define modern luxury. For high net worth individuals, the focus has shifted from what one owns to how one feels and lives.
This trend is driving expansion across wellness tourism, longevity programmes, biohacking and biotech-enabled self-care, and immersive spa concepts. With “longevity” a 2025 buzzword, consumers prioritise products and services that enhance physical and emotional resilience.
The implication for luxury brands is profound. Exclusivity and status remain relevant but must now be anchored in purpose. The hospitality sector, in particular, will need to integrate wellness at its core, through personalisation, immersive design, and partnerships with wellness experts.
The rise of the “third space” in retail
Physical retail is also transforming. Stores, no longer purely transactional, are evolving into multi-dimensional “third spaces” combining shopping, hospitality, and wellbeing. These hybrid environments aim to deliver exclusivity, community, and experience.
Post-COVID-19, 54% of connected consumers say they prefer stores that provide immersive and engaging experiences, per Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded January-February 2025. New ventures – including cafés, private members’ clubs, branded residences, wellness clinics and real estate – allow luxury brands to integrate further into consumers’ daily lives. This too was evident in Euromonitor’s Voice of the Consumer: Loyalty Survey 2025 where experience-led rewards ranked above other areas in terms of reward programmes.
Luxury retail will increasingly extend into adjacent verticals, including cafés, wellness clinics, private clubs, branded residences, and hospitality concepts. The new model of luxury retail will be less about visiting a store, and more about participating in a lifestyle ecosystem. Shopping will evolve into 360-degree experiences, where retail is less about purchasing and more about belonging.
The future of luxury: From products to purpose
Luxury is clearly shifting from possessions to experiences, from status to substance, and from exclusivity to empathy. Consumers expect brands to deliver immersive, emotionally intelligent offerings that support their values and lifestyle goals.
Growth will be shaped by multi-sensory environments, artistic collaborations, cultural partnerships, and diversification into food and beverage, high-end real estate, and sustainability-led ventures. The luxury “third space” will not only bridge the physical and digital, but also the transactional and emotional.
Ultimately, the new luxury is defined less by what consumers own, and more by how they live, feel, and connect. Brands’ success will depend on their ability to translate this human-centric approach into loyalty, resilience, and long-term value.
Read our report, Redefining Luxury: From Product to Purpose, Lifestyle, and Value for more analysis on the global opportunities and outlook across the Luxury Goods industry.