This report explores five transformative trends redefining the luxury goods landscape in 2025. It examines how brands are navigating demographic shifts and economic pressures by embracing lifestyle-driven value creation, expanding into experiential sectors, and integrating generative AI into strategic planning. The analysis also highlights the growing importance of climate-positive initiatives and the emergence of lifestyle-centric luxury, offering insights into evolving consumer expectations an
Delivery
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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 amidstturmoil
Even amidst 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.
Our expert’s view of Luxury Goods in 2025
Key findings
High bets on experience and lifestyle for value creation amidstvolatile conditions
Top five trends in luxury goods
Top five trends uncovered
Luxury players must move beyond product-centric models amidst future uncertainty
Luxury brands look to align with evolving notions of value
Value-seeking luxury consumers are ever more discerning in their luxury spending
Younger consumers seek more purpose and connection as stress and anxiety rise
Price sensitivity and a rise in rational consumption leads to a redirection in spending
Selfridges Unlocked redefines loyalty and engagement through lifestyle and experience
Louis Vuitton turns an everyday accessible indulgence into a branded luxury experience
Going beyond heritage to create value in a fast-changing purpose-driven ecosystem
Lifestyle, community and exclusivity merge into a singular, elevated luxury experience
How experiences are rewriting luxury’s playbook where emotion translates to equity
From luxury goods to good times: The global pivot to experiential value
Jo Malone’s strategic shift from fragrances to spirits leveraging strength in storytelling
Tesla’s 24/7 Diner heralds the dawn of a new chapter in luxury EV culture and lifestyle
Designing the 360° luxury experience in the age of luxury experientialism
Using GenAI to drive customer-centricity and revolutionise the shopping experience
Harnessing GenAI to conquer emerging markets amidst global economic turbulence
Luxury needs to invest more in greener sourcing, energy and shorter supply chains
Prada makes real-time changes to marketing campaigns based on immediate feedback
Zalando adds AI fashion assistant to enable consumers to shop by occasion
GenAI has potential to transform luxury amidst uncertainty and growing innovation
Luxury integrates home and lifestyle elements to enhance the brand experience
Consumers prioritise health and wellness amidst turmoil and uncertainty,
Global wealth surge in 60+ demographic underscores new values in the lifestyle sector
Evolution of private luxury member clubs: From status and prestige to purpose
Vuori partners with leading fitness instructor and boutique studio to expand into UK
Blurring of wellness, lifestyle and hospitality pushes hotels into quasi third space retail
Shaping the future of lifestyle-centric luxury
Climate-consciousness in luxury is emerging as a new symbol of status and expectation
Values-driven luxury for personal and planet-positive impact
Rising value of nature, visual harmony and spatial wellness as true elevated living
Rewilding Apennines: From sustainable to net-positive and nature-positive
Red Sea Global has the aim to protect biodiversity for conservation
Belmond’s Britannic Explorer underscores sustainable slow luxury travel
Sustainable value creation in luxury: Key to resilience and competitive strength
Future implications
Opportunities for growth
Definitions (1/2)
Definitions (2/2)
Luxury Goods
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.
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