The World Market for Luxury Goods

Delivery

This report comes in PPT.

Key findings

Macroeconomic pressures continue to test luxury business resilience

Despite an improved global growth outlook for 2025, the world economy remains highly susceptible to disruption. Geopolitical conflict, climate volatility and persistent macroeconomic pressures continue to test business resilience. These challenges are reverberating across the luxury sector, which faces far-reaching consequences from prolonged uncertainty.

Emerging markets present key opportunities for strategic expansion

Emerging markets continue to serve as pivotal areas for industry expansion, fuelled by growing populations and increasing wealth. Luxury brands are strategically focusing on these regions, such as Latin America, Southern Asia, and the Middle East, to reach new consumer groups, tailor offerings to diverse cultural preferences, and capitalise on significant untapped growth potential.

New technology drives a paradigm shift in consumer behaviour and business strategies

Technological advances continue to reshape shopping behaviour, accelerating the shift to omnichannel retail. Online sales of personal luxury goods now make up almost a quarter of global sales, reflecting lasting shifts in consumer habits. At the same time, growing adoption of GenAI is helping brands to optimise design processes and unlock new efficiencies.

Sustainability as a differentiator, to drive resilience and long-term value

Sustainability is becoming less about a moral or regulatory obligation and more about a strategic lever that can drive profitability, differentiation and resilience across the luxury landscape, especially in today’s volatile global context. By integrating this into core business strategies, brands can substantiate meaningful claims that set them apart.

Untapped consumer segments present growth opportunities amid turmoil

Even amid economic turmoil, growth opportunities exist in emerging geographies and overlooked segments. The 60+ age group is witnessing notable expansion in both numbers and economic power, and is increasingly prioritising discretionary spending, particularly on wellness and experiences, creating a lucrative market for innovative luxury brands and services.