Editor’s Note
This analysis from Bain & Company highlights a pivotal shift in the luxury sector, where stability in overall spending masks a significant realignment toward experiential goods, jewelry, and emerging markets like the Middle East.
An analysis indicates that consumption trends in the luxury market are shifting towards experiences, jewelry, and the Middle East.
According to the distribution industry on the 25th, Bain & Company, in a recent report titled ‘2025 Global Luxury Market Research,’ projected that global luxury consumption this year would reach €1.44 trillion, a level similar to the previous year. While outwardly stable, the report’s core diagnosis is that a distinct realignment is underway in consumption patterns, regional growth drivers, and category trends.
First, a clear shift in consumer interest towards experiences is noticeable. Travel, hotels, and fine dining have emerged as new luxury consumption trends, surpassing traditional luxury mainstays like leather goods and apparel. Bain described this as a “perception shift centered on experiences.” The explanation is that experiential luxuries such as fine dining, cruises, and safaris have rapidly grown, supporting the market. The report also highlights that younger consumer demographics are more distinctly leading this transition.
Among product categories, jewelry’s growth trend stood out the most. Its market is expected to grow by 4-6% this year, the highest growth rate among all luxury segments. Demand remained steady even in an uncertain consumption environment, supported by overlapping trends of emotional value, durability, and personalized design. In contrast, leather goods experienced negative growth, and footwear performed relatively poorly due to competition with sports brands.
Regionally, the Middle East was the most prominent. This is attributed to increased tourism demand and consumption by local high-income groups, centered around Dubai and Abu Dhabi in the United Arab Emirates (UAE). With China, the world’s largest luxury consumer, experiencing negative growth of -3 to -5%, and Japan and Europe slowing down, the Middle East has effectively become the sole ‘growth driver’ of the global luxury market.
A shrinking consumer base was cited as a structural risk factor for the luxury market. The number of global luxury consumers is estimated to have decreased from 400 million in 2022 to approximately 340 million this year.
