While the experience-driven sectors —travel, events, and high-end hospitality— showed above-average dynamism, the core of traditional luxury, personal luxury goods, faced its first real decline (excluding the pandemic period) in the past fifteen years. Valued at €363 billion, this segment fell 2% compared to 2023 in current terms (though it remained stable at constant rates). This downturn reflects how many consumers reduced discretionary spending amid inflationary uncertainty, compounded by price increases imposed by the brands themselves.
One of the report’s most striking conclusions is the shrinking universe of luxury consumers: an estimated 50 million clients were lost between 2022 and 2024, reducing the global base from 400 million to 350 million. However, those who remain —high-value clients— have increased their share of total spending, now accounting for roughly 45% of global luxury purchases, compared to 35% in 2021.
Regionally, performance was uneven. Japan led with estimated growth between 12% and 13%, fueled by favorable exchange rates and a rebound in tax-free shopping by tourists. Europe also showed encouraging signs, driven by the return of tourism —including Chinese and American visitors— which boosted duty-free sales in key cities and destinations. In contrast, China’s market contracted sharply, by around 20% to 22%, reflecting weakened domestic consumption and a drop in luxury transactions. Emerging regions —Latin America, India, Southeast Asia, and Africa— are positioning themselves as future growth territories, with projections of over 50 million new upper-middle-class luxury consumers by 2030.
In terms of distribution channels, the report highlights a decisive transformation. Outlet stores outperformed full-price retail locations, driven by consumers seeking “luxury with value.” Monobrand boutiques, despite better relative performance, saw a 1%–4% decline in foot traffic. Multibrand physical stores also suffered, with drops of 2%–8%. The online channel contracted slightly (1%–4%) after the pandemic-era surge, though it still holds around 20% of the market share. Meanwhile, the secondhand luxury market gained traction, reaching €48 billion in 2024 —a 7% increase— surpassing the growth of new goods in several key categories.
Luxury categories also diverged significantly. Beauty and eyewear stood out, growing 3%–5%, driven by demand for accessible indulgences and creative design innovation. Jewelry remained strong, particularly in the high-end segment. In contrast, watches, footwear, and leather goods experienced declines of 5%–7%, affected by price hikes and a “downgrade effect” among aspirational consumers.
Looking ahead, the report projects that 2025 could bring a modest recovery, with expected mid-to-low growth (0%–4%) for personal luxury goods, depending on macroeconomic stabilization and a gradual rebound in the Chinese market. By 2030, the trend points to sustained annual growth of 5%–9% for the overall luxury market, potentially reaching between €2 and €2.5 trillion, while personal luxury goods could climb to €460–500 billion.
To truly capture that potential, the report warns that brands must rebuild the foundations of luxury: refocus creativity, recover authenticity and storytelling, rethink customer relationships beyond the immediate transaction, and deliver flawless execution supported by technology —especially artificial intelligence. The challenge lies in choosing between maintaining exclusivity or expanding toward broader audiences, between raising iconic prices or exploring “high-low” strategies, and between fueling desire or nurturing lasting emotional affinity with clients. In short, the luxury of tomorrow will not be a continuation of yesterday’s —it will be redefined by those who can blend authenticity, operational excellence, and a genuine connection with the new consumer.
