Luxury Goods in Germany

Luxury goods in 2025: The big picture

Despite showing some resilience in 2025, value sales of luxury goods in Germany exhibited only modest growth, with some categories recording deceleration. This was largely influenced by persistent economic uncertainty and fluctuating inflation rates, which constrained consumer spending power and weighed on discretionary purchases across multiple luxury categories. In particular, personal luxury faced significant headwinds, while fine wines/champagne and spirits experienced a mixed performance, although luxury spirits maintained steady demand. The broader socioeconomic landscape, marked by cautious consumer sentiment and ongoing adjustments in household expenditure priorities, further shaped these demand patterns.

2025 key trends

In 2025, demand for luxury goods in Germany was notably shaped by shifting consumer values, with sustainability and personalisation remaining central. German luxury buyers increasingly gravitated towards brands that upheld strong environmental and social standards prioritising responsible sourcing, ethical production, and enduring quality. The momentum behind sustainable and circular consumption continued to build, with affluent consumers embracing second-hand and eco-conscious luxury options. In categories such as luxury timepieces, the resale of high-quality vintage pieces saw marked growth, reflecting a broader interest in longevity and heritage. Retail environments responded by expanding shelf space for eco-friendly, ergonomic, and innovative products. Purchasing decisions were increasingly influenced by sustainability, inclusivity, and resale potential particularly among Generation Z and millennials, who favoured brands that aligned with their personal values and ethical expectations.

Competitive landscape

In 2024, the competitive landscape of luxury goods in Germany was characterised by strong performances from leading companies across various categories, with a notable emphasis on sustainability and innovation. Premium automotive manufacturers, Daimler AG (Mercedes-Benz), Volkswagen AG (Audi, Porsche), and Bayerische Motoren Werke AG (BMW), maintained their dominant positions overall due to the high value of premium and luxury cars. These companies capitalised on the growing consumer demand for sustainable vehicle options, introducing a range of electric and hybrid models that aligned with environmental consciousness while preserving their brand heritage and innovation. Players in premium and luxury cars have been adapting to changing consumer preferences despite supply chain challenges and competitive pressures.

Retail developments

Traditional physical retail outlets maintain their dominance in terms of distribution for luxury goods in Germany, particularly for personal luxury. This is primarily driven by affluent consumers' preference for personalised and immersive shopping experiences these outlets offer. Specialist boutiques and high-end department stores, particularly in key locations such as Berlin, Munich, and Hamburg, remain highly popular. These stores, often housing flagship outlets of leading brands, provide exclusive in-store features such as private shopping salons and bespoke customisation services, which reinforce the appeal of physical stores. Despite the growing convenience of digital channels, the emphasis on experiential retail supports the sustained demand for tactile and sensory engagement with luxury products, particularly in categories such as designer apparel and footwear (ready-to-wear), luxury jewellery, and luxury leather goods.

What next for luxury goods?

Value sales of luxury goods in Germany are projected to experience moderate growth over the forecast period, driven primarily by a steady increase in the number of HNWIs, UHNWIs, and affluent consumers. The population of wealthy adults in Germany is expected to expand gradually, supporting sustained demand for premium products and exclusive services within categories such as luxury hotels, designer apparel and footwear (ready-to-wear), luxury timepieces and luxury jewellery. This demographic shift, coupled with a recovering economy and increased consumer confidence, is likely to reinforce spending power and positively influence value sales. By 2030, luxury goods is predicted to reach EUR83 billion, with a 5% current value CAGR (2025 constant value CAGR of 3%). Among the various categories, experiential luxury is expected to remain a dynamic performer, driven by a growing demand for exclusive and bespoke travel experiences, aligning with the preferences of affluent consumers.