Luxury Goods in Mexico

Luxury goods in 2025: The big picture

Retail value sales of luxury goods in Mexico demonstrated robust growth in 2025, maintaining the upward trend observed in preceding years. The overall performance was shaped by a combination of macroeconomic stability and a steadily expanding affluent consumer demographic, reinforcing Mexico's status as a key luxury market within Latin America. Notwithstanding expected modest GDP growth, consumer confidence in discretionary spending on luxury goods remained resilient. Growth was underpinned by an increase in the number of affluent adults in Mexico, which sustained demand across various luxury goods categories.

2025 key trends

In 2025, luxury goods in Mexico was significantly influenced by several key trends that shaped consumer behaviour and dynamics. The importance of sustainability became increasingly evident, as luxury brands and consumers prioritised care for the environment, as seen with the high supply of and demand for electric vehicles in premium and luxury cars. The sustainability trend was also particularly pronounced in personal luxury, where brands adopted more eco-friendly materials and production processes, such as eco-friendly leather tanning processes, and vegan lipsticks in upcycled leather refillable cases. Furthermore, personalisation gained prominence as consumers sought unique, customised luxury items that reflected their individual identity and status. The integration of artificial intelligence technologies enhanced the luxury retail experience through improved customer service, targeted marketing, and inventory management, resulting in a more seamless and engaging purchasing journey for consumers of luxury goods.

Competitive landscape

In 2025, luxury goods in Mexico was led by companies in premium and luxury cars, driven by high sales and a high level of concentration in this category. The top three players were Daimler (Mercedes-Benz), Bayerische Motoren Werke (BMW), and Volkswagen (Audi, Porsche, and Lamborghini). However, despite their dominance in premium and luxury cars, these players together accounted for only 15% of total luxury goods sales, reflecting the high level of fragmentation. These and other luxury car manufacturers are increasingly focusing on electric and hybrid models, aligning with the growing environmental awareness among consumers.

Retail developments

In 2025, the luxury goods distribution landscape in Mexico remained characterised by the dominance of physical retail stores, with department stores playing a particularly significant role in personal luxury, and grocery retailers within fine wines/champagne and spirits. Although retail e-commerce continued to account for a substantial share of sales, reflecting evolving consumer preferences and dynamics, physical retail stores, especially those situated in prime commercial districts of Mexico City and affluent areas like Cancún and Los Cabos, retained their popularity among HNWIs. These locations offer the tactile and immersive shopping experiences that affluent consumers value, underscoring the importance of physical touchpoints in luxury retail. Established department stores, such as El Palacio de Hierro, maintain their prominence by offering an exclusive portfolio of luxury brands through mini stores and pop-up formats. They enhance customer engagement with immersive brand experiences and flexible payment options, including interest-free instalments, which further appeal to luxury buyers. Luxury shopping centres, including La Isla Luxury Shopping Village in Cancún, continue to attract high-end consumers by concentrating premium brands in an upscale environment, thereby fostering convenience and exclusivity and solidifying their share of sales.

What next for luxury goods?

Retail value sales of luxury goods in Mexico are anticipated to experience dynamic growth in both current value terms and at constant 2025 prices in the forecast period from 2025 to 2030, projected to reach retail value sales of MXN536 billion. This upward trend will be driven by the increasing number of HNWIs, ultra-HNWIs, and affluent consumers, thereby bolstering demand across key categories, including personal luxury, premium and luxury cars, and experiential luxury. Experiential luxury is expected to continue to account for the highest sales, and will also see the highest value growth, as high-spending inbound arrivals continue to rise, and there is more of a focus on experiences rather than purchases of physical goods, with consumers seeking bespoke and exclusive experiences.