Despite persistent macroeconomic headwinds and geopolitical uncertainty, global luxury goods continues to evolve with resilience and innovation. Euromonitor International finds five transformative trends redefining luxury in 2025 – each signalling a shift away from product-centric traditions towards purpose-driven, experience-led ecosystems – where value creation, emotional resonance, and human connection drive future growth. Luxury is no longer just about what you own; it’s about how you live, how you feel, and how you connect.
Value creation amid shifting mindsets
Traditional markers of luxury – exclusivity, craftsmanship, and heritage – no longer satisfy today’s consumers. They now seek deeper emotional resonance, wellbeing, and lifestyle alignment, asking what the brand stands for and how it reflects their values.
This shift is driving brands to adopt more holistic strategies that prioritise wellness, experience, sustainability, and inclusivity. Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded January to February 2025,found that 55% of high-income respondents prefer spending on experiences rather than things, and 71% are concerned about the price of everyday items, underscoring a more value-conscious mindset. Brands must now move beyond product-centric models to holistic, emotionally intelligent ecosystems.
Transforming strategy through AI
AI is emerging as a game-changer across industries, including luxury goods. From hyper-personalised shopping experiences, to more efficient and sustainable supply chains, to predictive design and real-time marketing optimisation, many luxury brands already use AI to help them stay agile and relevant.
GenAI, in particular, enables predictive design, intuitive retail engagement, and deeper customer understanding.
67% of luxury professionals say GenAI will help create more targeted campaigns
Source: Euromonitor’s Voice of the Industry Survey 2025
Prada and Zalando, for example, are experimenting with AI-driven shopping experiences and marketing campaigns that blend efficiency with emotional intelligence.
The rise of lifestyle-centric luxury
Luxury is expanding beyond fashion and accessories into home, wellness, real estate, and even retirement living. The affluent 60+ demographic, in particular, is reshaping demand, seeking elevated solutions that support longevity, autonomy, and holistic wellbeing. A deeper convergence of luxury and lifestyle is evolving: brands are selling more than products – curating worlds and touchpoints that resonate with consumers on a deeper and more conscious level.
From luxury retirement villages to neuroaesthetic home design, brands are tapping into consumers’ desire for spaces that soothe, inspire, and support holistic living. The surge in private clubs, wellness clinics, and hybrid retail destinations further illustrates this lifestyle convergence. By expanding into lifestyle domains, luxury brands can diversify their portfolios and create new revenue streams which are less saturated but offer long-term consumer engagement.
Leading the way in climate-positive luxury
Sustainability is becoming less about a moral or regulatory obligation and more about a strategic lever to drive profitability, differentiation, and resilience, especially in today’s volatile global context. By integrating this into core business strategies, luxury brands can substantiate meaningful claims that set them apart.
Sustainability is no longer a differentiator but a baseline expectation, especially for millennials and Gen Z. Environmental consciousness has become a form of status, with nature/outdoor lifestyles increasingly seen as aspirational. Brands are responding with circular models, digital product passports, and net-positive strategies. B Corp-certified claims and other verified sustainability credentials have grown strongly since 2020. In this new era, true luxury lies in delivering sustainability not as a competing priority, but as an interconnected pillar of modern value. Luxury is defined by humility, harmony, and a profound sense of purpose, recognising that a future defined by wellness and purpose requires sustainability as its foundation.
Luxury spending is shifting from goods to experiences. While personal luxury declined marginally in 2025, experiential luxury – including travel, wellness, and hospitality – grew by 8% to USD103.4 billion.
From Tesla’s 24/7 lifestyle diner to Jo Malone’s entry into luxury spirits, brands are blurring the lines between product, place, and purpose. The rise of “third spaces” – hybrid environments that blend retail, wellness, and community - is redefining what it means to be a luxury retailer. Beyond economic value, the emphasis on experiences is deeply linked to wellbeing. Positive experiences foster lasting memories, emotional connection, and a sense of fulfilment, aiding good mental health. In a fast-paced, often stressful world, the ability to create positive moments through meaningful experiences offers not just happiness but stronger resilience and emotional balance, which ultimately leads to deeper brand loyalty and engagement.
The luxury industry stands at a turning point. As consumers seek purpose, connection, and wellbeing, brands must move beyond selling status symbols to delivering deeper significance. Luxury is becoming less about logos and more about legacy. Brands that will thrive are those that reflect the values of a new generation – authenticity, sustainability, and emotional intelligence.
Read our report, Top Five Trends in Luxury Goods, for more analysis on the global opportunities, trends and outlook across the luxury goods industry.