Luxury Goods in Brazil

Luxury goods in 2025: The big picture

Retail value sales of luxury goods in Brazil experienced moderate growth of 8% in 2025, reaching BRL56.8 billion. This growth was driven by a combination of ongoing economic recovery and shifts in consumer preferences. Affluent consumers continued to prioritise experiential luxury, alongside a growing emphasis on investment-worthy products, reflecting a preference for durability and long-term value. Macroeconomic factors, including a gradual stabilisation of inflation and modest GDP growth, underpinned cautious yet sustained spending in luxury goods. Demographic influences, particularly the sizable Generation Z and millennial cohorts, played a critical role in defining demand. These younger consumers remain highly aspirational yet increasingly socially- and environmentally-conscious, influencing the types of luxury products they are willing to invest in. The trend towards online luxury shopping via social commerce channels further supported sales, although traditional shopping centres in cities such as São Paulo retained their importance for luxury purchases due to their perceived safety, comfort, and personalised service.

2025 key trends

Luxury goods in Brazil continued to be shaped by several key trends that influenced consumer behaviour and industry dynamics in 2025. Sustainability remained a prominent factor, with increased emphasis on environmentally responsible production and ethical sourcing across designer apparel and footwear (ready-to-wear), and luxury jewellery, among others. Consumers exhibited greater scrutiny regarding carbon footprints, animal welfare, and social responsibility, prompting brands to enhance transparency in their supply chains.

Competitive landscape

In 2024, the competitive landscape of luxury goods in Brazil continued to be driven by major premium and luxury car manufacturers, including BMW do Brasil Ltda, which retained its leading position with a 16% value share. BMW's sustained leadership of premium and luxury cars can be attributed to the strong appeal of its BMW series that covers a wide range of models and which resonates with affluent consumers due to a combination of advanced technology, performance, and brand prestige. Porsche Brasil Importadora de Veículos Ltda remained the second-largest player, gaining further ground to hold 11% value share through the continued popularity of its Porsche brand, well-regarded for high-performance vehicles that blend luxury with exclusivity. Mercedes-Benz do Brasil SA climbed back up the rankings to third position after losing ground mid-review period. It received a significant boost to 2024 sales following the 2023 launch of the Mercedes-AMG G 63, making it a popular choice for luxury utility vehicles due to its iconic design and powerful V8 biturbo engine.

Retail developments

In 2025, the distribution of luxury goods in Brazil, especially of personal luxury, continued to reflect a combination of store-based outlets and retail e-commerce, with physical stores maintaining their dominance. Physical stores, particularly those in São Paulo and Rio de Janeiro, remained essential for luxury shoppers seeking personalised service, exclusivity, and direct engagement with products. High-involvement categories such as luxury leather goods, luxury jewellery, luxury timepieces, and designer apparel and footwear (ready-to-wear) benefited significantly from the enhanced in-store experiences, including exclusive VIP services, personalised consultations, and immersive interior designs. These elements reinforced customer loyalty and brand prestige, solidifying the importance of physical retail as a cornerstone for selling luxury products.

What next for luxury goods?

Luxury goods in Brazil are projected to experience moderate growth over the forecast period, with a 7% current value CAGR (2025 constant value CAGR of 4%), reaching a total market value of BRL81 billion by 2030. This growth will be underpinned by an expanding base of wealthy consumers, including a steady increase in the number of HNWIs, UHNWIs, and affluent adults, driven by sustained economic growth and wealth generation in sectors such as finance, technology, and agribusiness.