The evolving landscape of the luxury industry highlights a significant shift from material possessions to experiential value and lifestyle integration. Amid economic challenges and changing consumer expectations, luxury brands are prioritising authenticity, immersive environments, and community-driven experiences. This transformation spans many sectors like hospitality, wellness, and home— while also considering the role of the retail channel for future growth.
This report comes in PPT.
The luxury industry continued its path to recovery in 2025, showing modest growth. However, leading players are facing pressures from sluggish global expansion, evolving consumer trends, rising capital costs, geopolitical uncertainty, climate change and deglobalisation. Strategic investments in experience and lifestyle could help bridge gaps and strengthen brand equity.
With over 70% of affluent consumers now prioritising experiences over possessions, luxury brands are shifting focus towards immersive, service-led offerings - ranging from private wellness retreats to experiential retail and exclusive events and programmes - to deepen emotional engagement and remain relevant in an increasingly values- and purpose-driven market.
As luxury evolves beyond materialism, consumers are increasingly driven by need states such as emotional wellbeing, personal growth, connection and purpose. To stay relevant, brands must become more agile and attuned to these shifting desires - integrating these need states into their offerings. This interdisciplinary, lifestyle-focused approach is reshaping luxury into a purpose-led experience that meets deeper emotional and psychological needs, fostering stronger brand loyalty and engagement.
As consumers seek more meaningful, flexible and emotionally-resonant experiences, third spaces are evolving into strategic platforms for luxury brand engagement, retail sales, community-building and lifestyle integration, making them a critical frontier and alternative touchpoint to stay relevant in the next era of luxury. The future lies in creating ecosystems of care, creativity and connection that transcend traditional retail categories.
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
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