Luxury Market Stabilizes Amid Geopolitical and Cultural Shifts
Event summary
- Global luxury spending reached €1,443 billion in 2025, with personal luxury goods market expected to grow by 2% to 4% in 2026.
- Americas surging while Europe and the Middle East drag on overall growth.
- Half of luxury shoppers now consult the secondhand market before buying new, and half already use AI in their purchase journey.
- Over 80% of luxury market value represented by brands that sponsored sports in the past 12 months.
The big picture
The global luxury sector is navigating a complex landscape of economic volatility, geopolitical tensions, and evolving consumer priorities. The market is stabilizing but not returning to its old rhythm; instead, it's entering a new era defined by meaning and personal fulfillment over social validation. Brands that can reinvent their relevance and resonate with both consumers and AI-led ecosystems will be the ones to watch.
What we're watching
- Regional Disparities
- Whether the Americas can sustain their growth momentum while Europe and the Middle East recover.
- AI Integration
- How brands will adapt to AI-native relevance as consumers increasingly rely on AI for discovery and validation.
- Experiential Shift
- The pace at which experiential luxury continues to outpace tangible goods amid cultural shifts.
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