Key Themes Driving the Future Luxury Market: 2025 and Beyond
The luxury market is poised for significant transformation between 2025 and 2027 in response to structural and consumer pressures, with low to mid-single-digit growth forecast for the sector and the US projected to lead growth as a region, at 4-6%. This average growth figure reflects a very pronounced polarization between some luxury brands, which continue to thrive at double-digit growth rates, and others, which have been struggling. As such, the market has been and will continue to be largely characterized by polarization in spending patterns between the Ultra-HighNet-Worth (UHNW) consumer and the average aspirational consumer.
This flattish growth will be driven by a convergence of factors: the maturation of Gen Z as luxury consumers with greater
discernment in disposable spending allocation, the continued dominance of the Silver Generation’s spending power, and the
emergence of new luxury markets in Southeast Asia, the Middle East, and India.
Traditional luxury houses will face increasing competition from digitally native (DTC) brands and local luxury players, potentially leading to a more fragmented market where brand heritage alone no longer guarantees success. Performance will increasingly be tied to a brand’s ability to deliver experiences and personalization at scale, and brands offering highly personalized experiences will outperform the competition.
The most successful brands will be those that can balance global consistency with local relevance, digital innovation with physical experience, and exclusivity with accessibility, all while maintaining strong sustainability credentials and truly authentic community engagement.
Download the full report for deeper insights into the key drivers of luxury’s next chapter and discover the strategies that will shape the industry’s future.
