Luxury Goods in Spain

Luxury goods in 2025: The big picture

In 2025, luxury goods in Spain experienced a moderate growth trajectory, supported by a combination of socioeconomic and macroeconomic factors. Despite the ongoing inflationary pressures and high interest rates, which constrained the average disposable income of many Spaniards, the industry demonstrated resilience. This was largely due to the continued expansion in the population of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) and a steady influx of luxury-seeking tourists. These factors partially offset the cautious spending patterns observed among aspirational consumers, who increasingly prioritised saving and sometimes delayed or downgraded their luxury purchases, particularly in personal luxury categories. The sustained demand from the affluent segment and inbound tourism helped ensure overall retail current value growth in luxury goods, although the pace of growth was notably slower compared to the rapid recovery seen in previous post-pandemic years.

2025 key trends

Luxury goods in Spain was significantly influenced by evolving consumer values around sustainability and technological advancements in 2025. Luxury brands continued to integrate sustainable practices across product lines, responding to increased demand for eco-conscious luxury fashion, beauty, and accessories. This shift was particularly evident in personal luxury, where brands in luxury leather goods, such as Gucci, and fine jewellery, committed to sustainable materials and ethical production. Furthermore, personalisation gained prominence as consumers sought bespoke experiences and products tailored to their unique preferences, enhancing the appeal of luxury leather goods and fine jewellery. The development of artificial intelligence (AI) also began reshaping the market, enabling brands to offer more sophisticated digital interactions and customised recommendations, particularly impacting super premium cosmetics and premium and luxury cars.

Competitive landscape

In 2024, the luxury goods landscape in Spain continued to be dominated by major international players, with premium and luxury cars remaining the highest-value category. As a result, Daimler maintained its leading position, supported by the enduring popularity of its Mercedes-Benz brand, which is highly regarded for its innovation, performance, and luxury. Bayerische Motoren Werke AG (BMW) and Volkswagen AG secured the second and third positions, respectively, with the latter offering a diverse portfolio, including Audi and Porsche. Tesla Inc demonstrated dynamic growth by capitalising on the increasing consumer interest in electric vehicles, which consolidated its market ranking.

Retail developments

The luxury goods distribution landscape in Spain maintained a balanced coexistence between traditional brick-and-mortar stores and retail e-commerce in 2025. Store-based retail outlets continued to dominate, as affluent consumers valued the tactile and personalised experience of shopping in physical stores. This preference was particularly evident in categories such as luxury leather goods, designer apparel and footwear (ready-to-wear), and luxury jewellery, where the opportunity to receive expert advice and engage directly with brand representatives remained a significant draw. Despite this, retail e-commerce saw a moderate increase in popularity, growing by 5% in personal luxury and gaining further share. This growth was driven by the increasing consumer preference for convenience and the ability to explore super premium beauty and personal care, luxury wearables, and luxury eyewear with greater ease and flexibility. The increasing move towards digital channels reflected the industry’s strategic investments in enhancing online shopping experiences, including the integration of augmented reality tools and personalised virtual consultations.

What next for luxury goods?

Retail value sales of luxury goods in Spain are predicted to reach EUR30 billion by 2030, recording a 6% current value CAGR (2025 constant value CAGR of 4%) over the forecast period. This growth, while moderated compared to the rapid expansion seen over the review period, will be sustained by the steady increase in the number of HNWIs and UHNWIs in the country. The expanding affluent population will continue to drive demand across key categories, including luxury hotels, highlighting the enduring appeal of experiential luxury among Spain's wealthy consumers. Personal luxury is also set to perform well, bolstered by the increasing disposable income of the country’s affluent population, who are likely to continue investing in high-quality, bespoke items. However, broader economic headwinds, such as inflationary pressures and potential shifts in consumer spending behaviour, may temper growth rates, particularly in the latter part of the forecast period.