【韩国】[Overseas Report] Luxury Consumption Trend: ‘Fewer Handbags, More Wellness Investment’

A recent joint survey by the global consulting group Bain & Company and the Altagamma Foundation, a representative association of the Italian luxury industry, has detected significant changes in the consumption behavior of luxury consumers. According to the research, while the global luxury market is expected to see stable sales of $1.44 trillion (approximately 2,113 trillion won) in 2025, the number of customers continues to decline. It is also reported that existing luxury customers are changing their consumption habits.

Joëlle de Montgolfier, head of the luxury sector at Bain & Company, recently told AFP in an interview that the luxury sector is “having a much better year than expected.” A study conducted in collaboration with the Altagamma Foundation last spring, Italy’s official luxury association representing design, craftsmanship, and the luxury industry, had predicted a 2-5% decline in sales for 2025.

According to her, sales in the United States, one of the key luxury markets, faced difficulties earlier this year due to President Donald Trump’s inauguration and tariff announcements but have been recovering since May, and the Chinese market is also showing stability. However, she warned that the number of consumers in the luxury industry, which peaked at 400 million in 2022, is declining every year and “this year will also see a decrease of 10 to 20 million,” dropping to around 340 million.

Industry experts emphasized that one reason for this decline in popularity is “because prices continue to rise despite warnings last year that they were already quite high.” They noted that even items like sunglasses, eyewear, and beauty products, which were considered entry points to the luxury market just a few years ago, have seen price increases. The study’s authors warned, “The frequency of luxury consumption is decreasing, and consumers are turning their attention to more modest pleasures, promotions, and sales.”

Among younger generations like Gen Z and Millennials, who pursue value and experiences, consumers who want to add luxury to their lives are now trending towards using wellness services like restaurants or spas.

de Montgolfier pointed out.
This trend of prioritizing experiences over products is not limited to so-called ‘aspirational’ customers, those looking to enter the luxury market. According to the research, this pursuit of valuable experiences is a “persistent global trend” and also affects affluent consumers, who, while making up only 2% of all luxury customers, account for 45% of total luxury spending.

explained Joëlle de Montgolfier. The study describes this change as a ‘perceptual shift’ favoring luxury experiences like hotel cruises and high-end restaurants over traditional luxury goods, including high-end cars.

The global market for luxury personal goods (fashion, leather goods, jewelry, watches, beauty, etc.) this year is expected to remain generally stable compared to the previous year and is estimated to reach 358 billion euros (approximately 606 trillion won) in 2025, a 2% decline. While sales of high-end cars are expected to fall by 6%, wine and spirits by 5%, and art sales by 9%, sales at high-end restaurants are forecast to grow by 5%, and cruise travel sales by 10%.