Personal luxury goods, which saw a slight dip to €358 billion in 2025, are projected to recover with growth between 2% and 4% this year. This stabilization is uneven, marked by a sharp regional divide: the Americas are surging, driven by younger consumers and US-native brands, while Europe and the Middle East struggle with the impact of regional conflicts and diminished tourist traffic. Despite these hurdles, roughly 60% of luxury players are currently outperforming their previous year's results.
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Global Luxury Market Finds New Rhythm Amid Economic Volatility
The global luxury sector is navigating a complex landscape of geopolitical shifts and economic pressure, with total spending reaching €1,443 billion in 2025. While the market shows signs of stabilization in 2026, the era of predictable growth has yielded to a new environment defined by AI integration and changing consumer values.
Consumer behavior is shifting toward experiential luxury, with demand for immersive moments outpacing tangible goods by 1.5 times. Purpose-led experiences and "elsewhereism" in travel are gaining traction, while the role of artificial intelligence becomes critical. Half of all luxury shoppers now consult the secondhand market before purchasing new items and rely on AI tools for discovery and comparison. As brands compete for relevance, sports sponsorship has emerged as a key pillar, with over 80% of the market's value now tied to brands that actively invest in athletic partnerships.
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