Luxury retail faces significant headwinds in 2025, including weak economic growth, inflation, rising costs and geopolitical and climate risks. With global growth at a 30-year low—especially in China and the US—retailers must prioritize agility, deeper engagement, and personalization. As luxury shifts from products to lifestyle and experience, success will hinge on storytelling and creating experiential value-led retail that goes beyond a pure transactional model.

In 2025, retail value sales of luxury goods in Taiwan achieved solid growth of 7%, amounting to TWD604 billion. Although growth was moderated by persistent inflationary pressures and global economic uncertainties, which dampened consumer spending in certain categories, wealthy consumers continued to exhibit a strong affinity for premium and exclusive luxury products, particularly bespoke and limited-edition items. The sustained growth in demand was supported by the ongoing expansion of the highe

In 2025, retail current value sales of luxury goods in Romania demonstrated robust growth, reaching approximately RON12.5 billion. This growth, despite ongoing macroeconomic challenges, was driven by resilient consumer confidence among affluent individuals and an increase in inbound tourism, both of which contributed to higher spending across various luxury categories. In particular, Romania's full entry to the Schengen Area on 1 January 2025 had a positive impact on personal luxury goods demand

In 2025, luxury goods in Thailand was moderately constrained by slower-than-expected tourism recovery, due to safety concerns following the earthquake in Myanmar which had repercussions in Bangkok, along with competition in the region from Japan and South Korea, with total tourist arrivals and spending falling short of review period levels. Luxury leather bags, luxury timepieces, and luxury fine jewellery, which traditionally rely on affluent international buyers for peak sales, have faced softe

In 2025, luxury goods in the Philippines experienced significant developments, shaped by a blend of socioeconomic and macroeconomic factors. Despite the ongoing urbanisation trends that continued to enhance consumer spending and purchasing power, the market faced challenges from rising inflation rates, which constrained discretionary spending and impacted overall luxury goods consumption. Shifts in international tourism also significantly influenced consumer demand and sales in the Philippines.

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, driv

Luxury goods in Poland experienced a mixed performance in 2025, reflecting broader socioeconomic and macroeconomic shifts that influenced consumer behaviour. Despite these headwinds, the industry saw moderate growth in current value terms, supported by sustained demand across several categories. The strengthening of domestic consumption, combined with a resilient inbound tourism sector, continued to underpin sales of luxury goods. Inbound arrivals from Germany remained significant contributors t

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-see

Luxury goods in the Netherlands experienced a modest retail current value decline of 2% in 2025, as a subdued economic climate characterised by cautious consumer spending persisted, resulting in a fall in sales to EUR12.7 billion. While ongoing economic uncertainty and inflationary pressures contributed to a conservative approach to spending among some domestic consumers, the most affluent demonstrated resilience in their purchasing behaviour. The sustained influx of tourists from Europe, also s

Retail value sales of luxury goods in Singapore witnessed a significant 9% increase in 2025, reaching approximately SGD13.9 billion. This growth underscores the resilience of the luxury market, particularly in the face of global economic uncertainties and inflationary pressures. Affluent consumers in Singapore, driven by strong consumer confidence and rising wealth accumulation, continued to demonstrate robust demand for both luxury experiences and premium products. The industry's performance wa

Luxury goods in South Korea achieved solid 6% retail current value growth in 2025, rebounding from a slight decline the previous year. This resurgence was driven by sustained consumer indulgence and the release of pent-up demand, supported by a steady increase in both inbound and domestic tourism. Luxury brands successfully harnessed the influence of local personalities and offered exclusive product ranges to maintain and enhance their appeal. Moreover, unique retail experiences, such as pop-up

Retail value sales of luxury goods in Hong Kong experienced a mixed performance in 2025, influenced by a combination of ongoing macroeconomic challenges and shifting consumer dynamics. While the gradual recovery of inbound tourism provided some uplift to the market, total sales growth was moderated by persistent geopolitical tensions and a cautious consumer sentiment among key customer segments. The gradual strengthening of the Hong Kong dollar against major currencies, coupled with a slowdown i

In 2025, luxury goods in Canada demonstrated robust retail current value growth of 5%, continuing the steady expansion that began in 2021. However, this growth was tempered by macroeconomic challenges, including a rising cost of living that constrained discretionary spending. Some middle-income consumers exhibited caution amid economic uncertainty, adopting more conservative purchasing behaviours. Despite these headwinds, premium and luxury cars, which represents the largest category by value sa

After a slight decline was observed in retail value sales of luxury goods in Australia in 2024, a minor resurgence was experienced in 2025. However, these developments marked a departure from the robust expansion that characterised the early post-lockdown period of 2022 and 2023. Luxury goods faced persistent macroeconomic challenges, including elevated inflation and a decrease in real disposable income, which led to increased caution among luxury consumers, who became more discerning in their d

Retail value sales of luxury goods in Brazil experienced moderate growth of 8% in 2025, reaching BRL56.8 billion. This growth was driven by a combination of ongoing economic recovery and shifts in consumer preferences. Affluent consumers continued to prioritise experiential luxury, alongside a growing emphasis on investment-worthy products, reflecting a preference for durability and long-term value. Macroeconomic factors, including a gradual stabilisation of inflation and modest GDP growth, unde

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, a

Retail current value sales of luxury goods in the US continued to grow in 2025, with stronger momentum than observed in the previous year. However, growth was still tempered by a combination of global uncertainties and domestic economic pressures that influenced consumer behaviour. Internationally, geopolitical tensions persisted, while domestically, rising inflation rates and an uncertain economic outlook led to cautious spending among high-net-worth consumers. The decline of inbound arrivals i

Luxury goods in Malaysia rebounded to solid retail current value growth in 2025, driven by rising domestic consumer confidence and robust tourism growth. The positive performance reflected the favourable impact of an increasing number of high-net-worth individuals and stable macroeconomic conditions, including low inflation and steady GDP growth. The industry benefited from increased discretionary spending, particularly after the high-value goods tax (HVGT), slated to take effect in May, was abo

In 2025, luxury goods in Switzerland demonstrated a measured and steady performance, driven by moderate economic growth and cautious consumer spending. Despite geopolitical uncertainties and inflationary pressures that curtailed discretionary spending, the market saw a persistent trend of premiumisation and a selective rebound in consumer confidence. Experiential luxury, which encompasses high-end leisure activities and services, remained a positive performer. Growth was fuelled by an increasing

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 a

In 2025, luxury goods in Argentina continued its recovery, driven by the economic adjustments made in the previous year, particularly the significant devaluation of more than 100% in late 2023. This realignment of the currency facilitated the normalisation of import channels and stock levels across various luxury goods categories, which had been severely constrained by foreign exchange shortages. Despite this positive trend, the market's growth was tempered by persistent macroeconomic challenges

Value sales of luxury goods in Italy experienced a moderate uptrend in 2025, driven by a combination of socioeconomic resilience and evolving consumer preferences. Despite ongoing economic uncertainties and inflationary pressures impacting general consumer spending, high-net-worth individuals and affluent tourists continued to fuel demand for luxury goods. The reputation for quality craftsmanship and the appeal of “Made in Italy” offerings played a significant role in sustaining this demand. The

Luxury goods in the UK experienced a mixed performance in 2025, influenced by various socioeconomic and macroeconomic factors. Despite an overall challenging economic environment marked by persistent inflationary pressures and ongoing geopolitical uncertainties, the market demonstrated a degree of resilience. Local consumer spending was characterised by cautious optimism, driven by a gradual stabilisation in disposable incomes and a recovering labour market. Value sales of luxury goods, which in

Luxury goods in South Africa experienced a strong recovery in 2025, following a notable decline the previous year. Overall value sales growth was influenced by a combination of fluctuating exchange rates, cautious consumer spending amid lingering concerns over economic stability, and shifts in tourism patterns following global disruptions. Despite these challenges, the market was buoyed by an increase in disposable income among a niche affluent demographic and a sustained appetite for premium ex