Luxury Goods in Sweden

Luxury goods in 2025: The big picture

In 2025, luxury goods in Sweden experienced a notable shift, influenced by a complex interplay of socioeconomic and macroeconomic factors. The persistence of inflationary pressures and cautious consumer sentiment, particularly among middle-aged demographics, constrained demand to some extent. Despite ongoing financial uncertainty and elevated living costs, overall luxury goods demonstrated resilience, with the industry benefiting from sustained inbound tourism, especially within the region, driven by a relatively stable Swedish krona, which attracted affluent visitors from neighbouring countries. This influx of tourists notably supported areas such as experiential luxury and premium and luxury cars, reinforcing the market's adaptability and robustness.

2025 key trends

There was a heightened consumer focus on sustainability and technological innovation in 2025. The trend towards sustainability remained a pivotal driver, with increased demand for eco-friendly and ethically produced luxury products across categories such as designer apparel (ready-to-wear), luxury leather goods and luxury jewellery. Consumers also showed a sustained preference for pre-owned luxury items, aligning with circular economy principles and contributing to reduced environmental impact while stores and branded websites emphasised repair services. Concurrently, advancements in artificial intelligence (AI) facilitated more sophisticated personalisation in luxury shopping experiences, enabling brands to tailor offerings to individual tastes and preferences, particularly within luxury fashion and premium accessories.

Competitive landscape

In 2024, the competitive landscape of luxury goods in Sweden continued to be dominated by leading automotive groups, with Mercedes-Benz AG, Volkswagen Group AB, Tesla Inc, and BMW Northern Europe AB maintaining their stronghold as the primary value drivers. These companies collectively held double-digit shares overall, underscoring the sustained preference of Swedish luxury consumers for premium vehicles. Notably, Mercedes-Benz AG surpassed Volkswagen Group AB to regain leadership in 2024 with an ongoing emphasis on SUVs and technologically advanced models, with the all-electric Smart #1 SUV and the latest generation E-Class sedan being among the most successful offerings.

Retail developments

In 2025, physical retail outlets maintained their dominance as the preferred distribution channel for luxury goods in Sweden, driven by the bespoke in-store experiences that affluent consumers value when purchasing high-value products. This trend was particularly pronounced in categories such as luxury jewellery, luxury timepieces, and luxury leather goods, where the tactile nature and personalised service of flagship stores and established luxury boutiques played a decisive role. High-end shopping districts in central Stockholm and Gothenburg, which house flagships and the NK department stores, continued to anchor the distribution landscape, supported by significant investments in enhancing store ambiance and exclusive services such as private viewings, personal styling consultations, and bespoke customisation options that appealed to Sweden’s luxury clientele. Major retailers, concentrated in prime urban locations such as Stockholm’s Östermalm and Malmö’s city centre, focused on curating exclusive product assortments across various categories, including luxury jewellery and designer apparel.

What next for luxury goods?

Over the forecast period, luxury goods in Sweden is expected to record a 5% current value CAGR (2025 constant value CAGR of 3%) to reach SEK117.6 billion by 2030. This performance will be driven by an expanding base of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). The wealthy adult population in Sweden will continue to grow steadily, reflecting broader economic stability and evolving wealth generation patterns, particularly in sectors such as technology and finance. This demographic shift will particularly benefit key luxury goods categories, with designer apparel and footwear (ready-to-wear), and leather goods expected to see gains. However, this optimistic outlook will be tempered by several challenges. Market saturation and the rising popularity of pre-owned luxury items may constrain value growth in certain categories, particularly in personal luxury. Despite these challenges, the evolving preferences of the wealthy demographic, including a stronger inclination towards sustainability and experiential luxury, will play a crucial role in shaping demand.