Luxury Goods in France

Luxury goods in 2025: The big picture

Luxury goods in France recorded moderate retail current growth in 2025, building on the positive momentum observed in 2024. However, the Paris Olympic Games, despite LVMH's significant partnership, had a limited impact on demand for luxury goods. Much of the tourism spend during the event translated into sales in other categories, such as mass food and drink, and fan merchandise, rather than personal luxury goods. This diversion of consumer spending hindered the stronger growth prospects that were originally anticipated for the tail end of 2024. The event's influence on the broader retail landscape highlighted the need for luxury brands to diversify their strategies and better align with consumer interests during high-profile events to capitalise on increased footfall and spending.

2025 key trends

Luxury goods in France continued to be shaped by several key trends in 2025 that influenced consumer behaviour and industry dynamics. Sustainability remained a central concern, with a growing emphasis on responsible production and consumption, echoing the ongoing discourse around circular economy practices such as recycling and upcycling. The increasing integration of Artificial Intelligence (AI) into luxury retail has significantly enhanced personalisation, allowing brands to offer tailored experiences that resonate strongly with discerning consumers. This development reinforces the importance of customisation in luxury purchases, as buyers increasingly seek goods and services that reflect their individual identities and values. These trends collectively contribute to a luxury market that is progressively more conscientious and technologically advanced.

Competitive landscape

In national brand owner terms, luxury goods in France saw significant shifts in the competitive landscape in 2024, with Daimler AG (Mercedes-Benz) gaining leadership from Tesla (which lost share to cheaper Chinese production in addition to the negative sentiment towards owner Elon Musk), which fell to fourth position, also allowing fellow car manufacturers Bayerische Motoren Werke AG (BMW), and Volkswagen AG (Audi, Lamborghini, Bentley) to ascend the rankings. Many of these companies benefit from the craftmanship, prestige and status associated with premium and luxury car brands among affluent consumers. They have also continued to invest in innovative retail experiences and new store openings, including pop-up locations across France, which effectively enhance brand visibility and consumer engagement. These initiatives have been crucial in helping to sustain customer interest and reinforce market positions despite the ongoing constraints on international tourism and a more cautious domestic luxury consumer base.

Retail developments

In 2025, personal luxury in France continued to be predominantly purchased through department stores and specialist luxury boutiques, leveraging their ability to provide expert customer service and a curated selection of high-end items. These traditional bricks-and-mortar outlets remain popular among affluent consumers who value personalised advice and the tactile experience of luxury shopping. Iconic department stores such as Galeries Lafayette, Le Printemps, and Le Bon Marché, alongside specialist stores located primarily in Paris’s prestigious shopping districts, reinforced their dominant role in luxury retail. These establishments have increasingly enhanced their omnichannel strategies, integrating seamless home delivery, click-and-collect services, and exclusive in-store experiences, thus appealing to luxury shoppers seeking convenience without compromising a high-touch service. France also witnessed the opening of new high-end shopping districts and luxury-focused department store refurbishments, which introduced innovative in-store perks such as personalised concierge services, private shopping suites, and exclusive event spaces. These retail advancements attracted affluent shoppers and complemented the digital evolution, maintaining the centrality of France’s luxury retail environment in a balanced omnichannel ecosystem.

What next for luxury goods?

The outlook for luxury goods in France over the forecast period is expected to be moderately positive, with retail value sales set to record a 4% CAGR to reach EUR62 billion by 2030. This growth will be primarily driven by the increasing number of HNWI, UHNWI, and wealthy adults, which is expected to bolster demand for iconic product categories such personal luxury, the largest category in the industry. It is predicted to record a 3% current value CAGR to reach EUR30 billion. However, the pace of growth may be tempered by ongoing socioeconomic factors, including evolving consumer attitudes towards sustainability and responsible consumption, which continue to influence purchasing behaviour, particularly among younger demographics such as millennials and Generation Z.