This report examines how consumers engage with loyalty programmes in a context shaped by disruptive technologies, changing priorities, and shifting expectations. It analyses what drives participation, how value is perceived and where current programmes fall short across key dimensions of loyalty. The findings highlight where businesses need to refine mechanics, improve relevance of rewards and adapt loyalty strategies to evolving behaviours to sustain meaningful engagement and retention.

As wellness transitions from aspiration to business infrastructure and continues to converge with technology and healthcare, brands are propelled by innovations in digitally enabled personalisation and medical-grade offerings. Integrated product-service ecosystems and science-led credibility unlock new value, with premium differentiation defined by scientific rigour and continuous consumer engagement across touchpoints.

In 2025, luxury goods in Japan witnessed steady growth in retail current value sales, maintaining the positive trajectory established in the preceding three years, albeit at a more subdued pace. The return of affluent foreign visitors from key markets, coupled with sustained domestic consumption, continued to bolster growth. However, ongoing geopolitical uncertainties and moderate economic growth prevented more robust expansion. Macroeconomic conditions, including steady inflation and cautious c

The 2026 Iran conflict marks the fourth major economic disruption to global consumer markets in under two decades. While each crisis originated differently, their impacts on consumer markets and behaviour reveal distinct patterns that are vital for mitigation planning. 

The report explores how brands are reshaping loyalty into a strategic growth lever. By embedding choice-based rewards, wellness incentive and immersive micro-content into customer experiences, companies convert attention into meaningful engagement, drive repeat behaviour and unlock long-term value across diverse markets.

This report bring together results from Euromonitor’s Voice of the Industry Survey, fielded in March and October 2025, which tracks sales performance and expectation, innovation initiatives, digital trends and technology investment. It highlights insights from industry professionals to understand short- and long-term business priorities and growth strategies.

Amid sluggish growth, inflation, and geopolitical uncertainty in 2025, luxury demand has softened. This report analyses how leading luxury groups are building resilience by strengthening regional strategies, investing in experiential retail, diversifying portfolios, and targeting growth in emerging markets. These strategic shifts are enabling brands to adapt to market pressures and capture new opportunities in a rapidly evolving competitive landscape.

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