LUXURY BRANDING MAGAZINE

Special Issue:
Global Growth &
Emerging Markets
Tech Innovations: AI,
Blockchain & XR
Sustainability &
Circular Luxury
Strategic Priorities for
Luxury Leaders
New Generations
Redefining Luxury

Luxury’s Next JUNE 2025

Frontier: Markets,
Technology &
Strategy to 2030
TABLE OF CONTENT

Why 2025 Is a Defining Year for Luxury Industry

07 Growth

What’s Driving Global Luxury Market

09 Momentum in 2025

Luxury Segments on the Rise – Who’s Winning

11 Where?

2030’s Key Players: Meet the New Generation

13 Powering Luxury

The Shifts That Will Reshape Luxury’s Future by

14 2030

How Luxury Consumers Are Evolving Across

16 Key Regions
TABLE OF CONTENT

2025 Trend Forecast: What Will Make or Break

17 Luxury

What Global Headwinds Mean for Luxury’s

19 Next Chapter

Luxury Frontiers: The Markets Set to Lead

20 Luxury Growth Through 2030

Inside the Forces Fueling and Challenging

21 Luxury’s Rise

5 Strategic Moves Luxury Brands Must Make

23 Now

What Today’s Shifts Mean for Tomorrow’s

24 Luxury Strategy
 Global Bay

Over the past five years, the luxury sector has enjoyed a historic run -
A LETTER record-breaking profits, global expansion, and soaring demand across

TO THE categories. But as we step into 2025, the climate is changing fast. Growth is
slowing, top-performing markets like China are cooling, and even legacy
LUXURY brands are feeling the pinch.
For luxury businesses, this moment is not a crisis - it’s a correction. The
INDUSTRY surge in demand from 2019 to 2023 was driven heavily by price increases,
not volume. As a result, many brands pushed margins without evolving
their product strategies, digital experiences, or customer relationships.
Today’s clients - whether in London, Lagos, or Los Angeles - expect more
than beautiful products. They want authenticity, sustainability,
personalisation, and cultural relevance. Gen Z, Millennials, and UHNW
clients don’t just buy - they engage. And the way they engage is
increasingly digital-first.
This edition dives into what luxury leaders need to know now: how
regional buying patterns are shifting, why hyper-personalisation matters
more than ever, and how technologies like AI and XR are rewriting the
rules. We’ve cut through the noise to focus on the data, the trends, and the
real strategies that will separate tomorrow’s winners from yesterday’s
icons.
To every luxury brand owner reading this - whether you're running a
heritage label in Mayfair or building a digital-first brand from a Bristol
studio - the message is clear: the future of luxury isn’t just about what you
sell, but how, where, and why your clients connect with you.

Global Bay

05
Global Bay Luxury
Magazine
The luxury industry
has experienced
significant growth
over the past several
years, fueled by
strong demand and
strategic expansion.
However, as we
approach 2025, the
sector faces a period
of adjustment
marked by slowing
growth, market
saturation, and
evolving consumer
behavior. This issue
examines the key
trends shaping the
luxury landscape,
including pricing
challenges, shifting
demographics, and
macroeconomic
pressures. Our
analysis aims to
provide a clear
understanding of
these developments
and their implications
for brands navigating
this pivotal moment
in luxury’s evolution.
 Global Bay

Why 2025 Is a Defining Year for

Luxury Industry Growth
THE CHANGE COMES AMID MARKET CHALLENGES
AND EVOLVING CONSUMER EXPECTATIONS

But now, as we step into 2025, things are

shifting. The industry is hitting a
slowdown that even top brands can’t
escape, mirroring wider struggles across
fashion. For the first time since 2016 (not
counting the pandemic year), luxury value
creation is expected to fall short of last
year’s numbers. What’s behind this? Price
increases have plateaued, which is
dampening enthusiasm, especially among
aspirational buyers. Meanwhile, broader
economic challenges - particularly in
China, which powered more than 18%
annual growth from 2019 to 2023 - are
casting a shadow over the market.
Consumers are becoming more selective,
scrutinising not just price but authenticity,
craftsmanship, and brand values. And
with digital channels booming, brands
face a delicate balancing act: how to
maintain exclusivity while reaching wider,
younger audiences. This moment marks a
critical turning point, pushing luxury
T he luxury sector has been on a remarkable run over the past five years.
From 2019 to 2023, the appetite for personal luxury goods - fashion, leather,
houses to innovate their
sharpen their value propositions, and
strategies,

watches, and jewelry - soared, driving a steady 5% compound annual growth rethink how they engage with a rapidly
rate. Big-name brands, especially those raking in over €5 billion annually, evolving client base.
leveraged their sheer size to boost desirability and extend their reach Getting to grips with these dynamics is
worldwide, leaving general markets in their dust with record profits. crucial for anyone aiming to stay ahead in
Interestingly, most of this growth—over 80%—came from price hikes, while this evolving luxury landscape and
actual sales volumes played a smaller role. uncover the next wave of opportunity.

07
 Global Bay

The luxury landscape is evolving - and

it’s not just about shifting market
numbers. The very fabric of who
luxury consumers are is changing.
Today’s buyers are more diverse, more
discerning, and they’re looking for
5
much more than just products. They
want experiences that feel personal,
authentic, and deeply connected to
4
their lifestyle. From bespoke travel
adventures to wellness retreats, luxury
is increasingly defined by these
3
exclusive moments that go far beyond
ownership.
But this fast growth hasn’t come
without its bumps. The very ambitions 2
that fueled expansion have also
exposed vulnerabilities. Broad brand
exposure and aggressive price hikes 1
have chipped away at the exclusivity,
craftsmanship, and innovation that
made luxury unique. Many brands 0

7*
found themselves struggling to keep up
0

3
01

01

01

02

02
–2

–2

–2

–2

–2
- unable to evolve their strategies or
08

10

15

19

23
20

20

20

20

20
supply chains fast enough to support
their new scale. And even those that
have adapted now face growing
demands from consumers who expect
genuine creativity, impeccable quality,
and a truly personalised touch.
Looking ahead, growth is expected to
slow, with annual gains between 1 and
3% through 2027. Emerging markets
hold great promise, but they likely

+18% ANNUAL
won’t fully make up for slower
momentum in established hubs. For

GROWTH
luxury leaders, the path forward is
clear: a comprehensive strategic reset is
needed. That means doubling down on

KEY DRIVER FROM

innovation and reconnecting with the
core values that inspire loyalty and
desire. Only by doing so can brands

2019–2023
ensure they remain relevant and
coveted in this dynamic new era of
luxury.

08
 Global Bay

What’s Driving Global Luxury

Market Momentum in 2025
LUXURY EXPERIENCES OUTPACE GOODS AS MARKETS
EVOLVE; STEADY GROWTH EXPECTED THROUGH 2030.

Luxury experiences continue to outpace traditional goods, This softening is particularly pronounced among
capturing consumers’ growing desire to invest in travel, Generation Z, whose enthusiasm and advocacy for luxury
exclusive social events, and memorable moments. Within brands have waned significantly in recent years. This
the broader realm of experience-based luxury - such as fine demographic shift has contributed to a contraction of
art and high-end automobiles - a nuanced trend is about 50 million luxury consumers globally over the past
emerging. While entry-level segments face some two years. Yet, despite this shrinking customer base, top-
contraction, ultra-high-net-worth individuals (UHNWIs) tier luxury buyers continue to dominate purchases, even as
are increasingly gravitating toward the most extravagant, many express concern that their luxury shopping
absolute expressions of luxury, underscoring a widening experiences no longer feel as unique or exceptional as
gap in consumer behavior. before.
Turning to personal luxury goods - the very heart of the As the luxury sector navigates these changes, brands face
luxury industry - the landscape is shifting. For the first time the challenge of reimagining how to engage a more
in 15 years (excluding the pandemic years), this core discerning, evolving clientele—one that increasingly values
segment saw a contraction. Faced with macroeconomic authenticity, exclusivity, and meaningful experiences
uncertainty and ongoing price hikes, many consumers are alongside their prized possessions.
reassessing discretionary spending. In 2024, the personal
luxury goods market retreated to approximately €363
billion, marking a 2% decline from 2023 when measured at
current exchange rates, though the market remained stable
at constant exchange rates.

09
 Global Bay

Today’s consumers increasingly channel their spending

toward travel, hospitality, and exclusive events, craving
personalised moments that go beyond material possessions.
The numbers speak for themselves: luxury travel is set to
surge from about $1.38 trillion in 2023 to an impressive
$3.1 trillion by 2031, with a compound annual growth rate Bernhard H. Mayer’s
(CAGR) of 11.2%. In comparison, luxury goods are Mecanique Collection
expected to grow from approximately $266.6 billion in 2024 (2023, Hong Kong)
to $369.8 billion by 2030, at a 5.6% CAGR.
This shift underscores a vital strategic pivot for luxury
brands. Success now hinges on delivering exceptional, Projected digital shift
bespoke experiences - what insiders call “exclusive in sales by 2025
treatment” - that truly resonate with discerning clientele. By
embracing this experiential focus, luxury houses can
captivate and expand their audiences even as the market Global travel revenue:
matures and consumer preferences evolve. $495B in 2025, $3.1T
Adding to this dynamic, brands are leveraging digital in 2031
innovation - AI-driven personalisation, immersive AR/VR
experiences, and blockchain-backed authenticity - to
deepen emotional connections and elevate the luxury
experience both online and offline. The U.S. luxury market alone is expected to hit $86.84
billion by 2032, driven by strong demand for high-end
fashion, premium accessories, and unique brand
experiences. Notably, the Asia-Pacific region dominates,
holding 40.12% of the global luxury goods market share in
2022.

AI
Luxury products continue to serve as powerful status
Personalisation
symbols, prized for their unmatched quality, durability, and
exclusivity. Among affluent buyers, price often takes a
backseat to uniqueness and superior design. A prime
How Technology is
Transforming
example: Swiss brand Bernhard H. Mayer’s launch of the
Luxury Mecanique Collection in Hong Kong in 2023 - a line of
distinctively designed luxury watches - demonstrates how
Blockchain
innovative design propels market growth.
-backed

Authenticity According to Statista, the luxury goods market is on track

to generate $495.16 billion in revenue by 2025, with an
annual growth rate of 3.94% projected through 2029. The
AR/VR
largest segment remains Luxury Watches & Jewelry,
Experiences
Online Sales
forecasted at $166.44 billion in 2025. China continues to
lead globally, expected to generate $110 billion in luxury
goods revenue that same year, while online sales are poised
to account for 13.4% of total market revenue, reflecting the
digital shift reshaping the industry.

10
 Global Bay

Luxury Segments on the Rise –

Who’s Winning Where?
EXPLORE KEY LUXURY SECTORS SHAPING THE FUTURE
AMID EVOLVING CONSUMER DEMANDS AND GLOBAL
SHIFTS.

The global luxury market is no longer just about what you own. It’s about how you live, travel, dress, and even recharge.
From fashion and beauty to real estate and experiences, luxury now comes in many forms - and not all of them are growing at
the same pace.
Beauty and travel are on the rise. Consumers want indulgence that feels personal. Skincare routines, wellness escapes, once-in-
a-lifetime trips - these are the new status symbols.
Fashion? A bit more complicated. Oversupply, shifting tastes, and tighter margins are forcing legacy brands to rethink
everything.
Each category - whether it's watches, cars, or high-end homes - faces its own set of pressures. But the big drivers are clear: Asia
is leading demand, major cities still set the tone, and younger buyers expect more than just a logo.
Tech, sustainability, and values now matter as much as heritage and craftsmanship. The rules of luxury are changing. Fast.
The brands that keep up won’t just survive. They’ll lead.

11
 Global Bay

The Big Six: Sectors That

Are Shaping Luxury

01. Fashion & Leather 02. Beauty & Personal 03. Watches & Jewelry
Goods Care
$76.13B in 2025; growth led by Luxury beauty grew ~10% in Recovering post-2020, with high-
price hikes. Volumes weak; 2023, led by Asia-Pacific and end jewelry strong. Online and
oversupply and exclusivity loss digital marketing. Forecast to hit preowned watch markets growing
pressure brands. $590B by 2028. fast.

04. Premium Vehicles 05. Travel & 06. Real Estate

& Luxury Cars Hospitality
€579B market in 2024; EVs drive $1.38T market in 2023; nearly 8% Luxury real estate rebounded in
~10% CAGR. Yachts, jets see growth forecast. Luxury 2024; 3–5% price growth expected
strong demand from wealthy experiences increasingly compete in key cities like Dubai and New
buyers. with goods. York.

Some markets are heating up. Others are

holding steady.
Real estate hubs like Dubai and Geneva,
with limited supply and investor
magnetism, remain in demand.
Switzerland’s low taxes make it a favorite
for global wealth. But rising rates and
affordability are cooling the pace in some
regions.
Meanwhile, luxury fashion is rethinking
scarcity, battling oversupply. Beauty rides
high on digital buzz and regional demand,
especially in Asia.
Watches and jewelry tap into pre-owned
appeal. Auto and experiential goods are
booming, with EVs, jets, and yachts
shaping elite tastes. Travel is leaning hard
into once-in-a-lifetime moments. For
brand owners, the takeaway is clear: shift
from static prestige to dynamic relevance.
Across categories, growth favors agility,
meaning, and market intuition.
12
 Global Bay

2030’s Key Players: Meet the New

Generation Powering Luxury
MILLENNIALS, GEN Z, AND GEN ALPHA DRIVE 80%
OF LUXURY PURCHASES, SEEKING AUTHENTICITY
AND INNOVATION. “Tomorrow’s luxury
customer is already here—
young, connected, and
values-driven. If you’re
not evolving, you’re
invisible.”

The face of luxury is getting younger - and

faster than you think. Millennials, Gen Z,
and soon Gen Alpha aren’t just browsing;
they’re buying big. By 2030, they’ll drive
over 80% of global luxury sales, spending
at nearly triple the rate of their
predecessors. Today’s luxury journey
starts early - at age 15, not 25. In markets
like Spain, nearly half of premium
consumers will come from these cohorts
by 2025. But it’s not just about age - it’s
about mindset. These buyers want brands
with purpose, products with a story, and
experiences that feel personal. They care
about sustainability, inclusivity, and
transparency. They crave cultural
relevance, social impact, and digital-first
access. That’s why smart luxury brands
are going hyperlocal - dropping capsule
collections for Eid, Lunar New Year,
Pride, Diwali, and beyond. They’re
rethinking loyalty programs, investing in
immersive experiences, and meeting these
shoppers where they live - online and in
real life. The playbook is shifting - from
status to identity.

13
 Global Bay

The Shifts
That Will 2.5

Reshape 2.0

Global Market Value (€ trillions)

Luxury’s 1.5

Future by 2030 1.0

DISCOVER HOW NEW CONSUMERS, 0.5

TECH, AND EMERGING MARKETS WILL

TRANSFORM LUXURY’S GLOBAL
0.0
LANDSCAPE. 2024 2030
Year

By 2030, the global luxury market will see shifting demand across regions.
BY 2030, LUXURY SHIFTS Overall luxury spending, valued at €1.5 trillion today, it’s expected to hit €2–2.5
trillion by 2030, riding a steady 5-9% annual growth curve. But this isn’t just
TO EMERGING MARKETS
about numbers. It’s about a full-scale shift in who’s buying, where they’re
AND YOUNGER BUYERS, buying, and why.
DRIVEN BY TECH, Emerging markets are stepping into the spotlight. So are younger, digital-native
REGULATIONS, AND consumers who care as much about values as they do about aesthetics. Add in
tech disruptions, cultural shifts, and rising geopolitical tension, and you’ve got a
GROWTH FROM €1.5T TO
luxury landscape that’s being completely redefined. From how products are
€2–2.5T GLOBALLY. made to how experiences are delivered - everything’s on the table.
The next five years? They’re not about more of the same. They’re about luxury
getting smarter, faster, younger, and more global than ever before.

Authenticity over excess. Sustainability over status. Personalisation over mass appeal. These are the values reshaping what
luxury means in 2025 and beyond.
At the same time, the global map of demand is shifting. Emerging economies in Asia-Pacific, the Middle East, and parts of
Africa are becoming powerhouses of growth. Rising affluence meets cultural pride—and brands that get the nuance are the
ones that win.
Tech is the other game-changer. From luxury e-commerce to virtual flagships and AI-styled shopping, digital is no longer a
channel - it’s the experience. And let’s not forget sustainability. Circular fashion, ethical sourcing, carbon-conscious supply
chains - it’s all part of the new luxury playbook.
Financially? The outlook’s solid. Despite macro uncertainty, the industry is holding steady, thanks to premiumisation and
smart investments in innovation.

14
 Global Bay

Demographic Shifts & Consumer Behavior

Millennials and Gen Z will account for over 70% of global luxury demand by
2030. These younger consumers value authenticity, sustainability, and
personalisation more than traditional status symbols. With the average age of first
luxury purchase dropping to 15, early engagement is key. Experience is now on
par with ownership, driving interest in luxury travel, wellness, and digital
exclusives.

Market Expansion & Regional Growth

Asia-Pacific continues to lead growth, with China, Southeast Asia, and India
generating nearly half of global luxury sales. Emerging markets across the Middle
East, Latin America, and Africa are also gaining momentum, driven by rising
affluence and cultural pride. Brands that localise products and campaigns for
regional celebrations are capturing deeper market share.

Digital Transformation & Omnichannel

Online sales are expected to exceed 30% of the luxury market by 2025. Mobile
commerce, social selling, and immersive digital experiences are now central to
engagement. Virtual goods, NFTs, and AI-powered customisation are
transforming how consumers interact with brands across every channel.

Sustainability & Ethical Luxury

More than 60% of luxury buyers prefer brands that demonstrate strong
environmental and social responsibility. Circular models—such as resale, rental,
and refurbishment—are seeing widespread adoption. Transparency, traceability,
and ethical sourcing have moved from optional to essential.

Financial Outlook & Corporate Performance

Despite global economic uncertainty, luxury revenues in the fashion sector are
forecasted to grow 5-6% annually through 2025. High-margin categories like
watches, jewelry, and leather goods continue to drive profitability. Investment in
innovation, digital tools, and premium positioning remains a strategic priority for
long-term resilience.

15
 Global Bay

How Luxury Consumers Are

Evolving Across Key Regions
EXPLORE HOW AGE, WEALTH, GENDER, AND REGIONAL
TRAITS SHAPE LUXURY DEMAND ACROSS KEY
MARKETS WORLDWIDE.

Luxury demand is shifting across regions and age groups.

While Millennials and Gen Z fueled growth from 2015 to
2022, Gen Z engagement has started to slow, contributing
to a global customer drop of nearly 50 million. Today,
Millennials and Gen X are driving recovery - especially in
the U.S. and Europe - while younger affluent consumers in
Asia, particularly in China, remain influential despite a
cooling market.
Spending power is also splitting by wealth tier. The top 1-
2% of earners now account for a growing share of sales,
spending more on categories like cars, yachts, and fine
jewelry. Meanwhile, aspirational consumers are pulling
back, while rising middle classes in India, China, and Latin
America are fueling the next wave of growth.
Women account for a large portion of global luxury
purchases. Traditional categories like handbags and
cosmetics remain strong, while men’s luxury - from watches
to grooming - is growing fast, especially in Asia.
Regional behaviors vary: Asian consumers are younger,
highly digital, and leading the charge in social commerce.
North Americans blend online convenience with in-store
experiences. Europeans skew older, with tourism playing a
key role in sales. Across all markets, sustainability and
authenticity continue to influence decisions, with up to 31%
of jewelry buyers now factoring in ethical sourcing.
Your audience isn’t one-size-fits-all. Invest in regional
"The top 1% are spending more than ever,
insights, elevate offerings for ultra-high-net-worth
while emerging middle classes in India and individuals, and build long-term loyalty among younger and
Latin America are shaping the future of middle-class buyers - especially in emerging markets.
luxury." Authenticity and ethics aren’t optional anymore - they’re
business essentials.

16
 Global Bay

2025 Trend Forecast: What Will

Make or Break Luxury
HOW TECHNOLOGY, SUSTAINABILITY, AND
NEW CONSUMER VALUES ARE REDEFINING
LUXURY’S FUTURE LANDSCAPE.

Technology as a Game-Changer in Luxury

Technology is reshaping luxury, driving innovation from
design to customer experience. Over the next decade,
generative AI, extended reality (XR), and blockchain will
revolutionise how luxury products are created and sold.
Generative AI accelerates design by generating countless
variations based on consumer data and trends. It also
enriches marketing and automates segmentation,
potentially adding $150–275 billion to sector profits within
3–5 years by streamlining creativity and content
production.
AI powers hyper-personalised offers and communications,
while virtual assistants and chatbots provide seamless, 24/7
service. XR technologies deliver immersive virtual try-ons,
metaverse showrooms, and hybrid events. Brands like
Gucci and Valentino lead in engaging digitally native
consumers through virtual spaces.

Transparency and Hyper-Personalisation in Luxury

Blockchain and NFTs introduce new levels of authenticity
and ownership. NFTs link physical items to exclusive
digital certificates, enriching post-purchase engagement
such as VIP event access. Platforms like LVMH’s AURA
provide transparent, tamper-proof product histories.
Combined with AI, these technologies enhance supply
chain transparency, enabling consumers to verify
provenance and sustainability claims.
Hyper-personalisation, driven by big data and analytics,
will become a critical differentiator. Tailored products,
exclusive packaging, VIP deliveries, and AI-driven
recommendations create deeply customised experiences.
Technology enhances craftsmanship and sustainability,
preserving the human touch luxury is known for.

17
 Global Bay

Transparency, Sustainability, and Circularity as Core Values

Luxury’s competitive landscape now revolves around
transparency, sustainability, and circularity. Brands are
embedding eco-responsibility into their business models,
driven by consumer demand and regulation. Ethical
sourcing, renewable energy, and AI-enabled efficiency are
becoming standard.
Consumers expect total transparency via digital product
IDs and passports, confirming authenticity, eco-
friendliness, and recyclability, while offering access to repair
and certified resale. Brands like Mulberry and Chloé are
already pioneering NFC-tagged products.

The Circular Economy and NFT Revolution

The circular economy is mainstream luxury’s growth
engine. Resale markets boost margins by up to 40% by
extending lifecycles and enabling repeat sales. Jewelry,
leather goods, and classic fashion lead resale growth,
supported by brand-integrated platforms. Alternative
consumption models - rentals, co-ownership, subscriptions -
are gaining ground, especially in apparel and vehicles.
Digital ownership is rising. Luxury houses have embraced
NFTs and digital art auctions, and physical products will
soon include NFT seals certifying uniqueness and enabling
authorised resale. NFTs provide new ways for brands to
engage customers and build loyalty. Success in luxury’s future requires
adaptability. Leading brands will blend
Craftsmanship Meets Innovation
aspirational products with AI and data,
cultivate authentic relationships with
Craftsmanship remains luxury’s soul but increasingly
diverse younger audiences, and commit to
integrates tech. 3D printing, AI-guided laser cutting, and
transparency and sustainability. Creativity
AR in stores enhance precision and storytelling without combined with digital platforms and
sacrificing artisanal quality. These tools bring production ethical practices will define luxury’s next
processes to life, deepening consumer connection. chapter.

New Players and Business Models

Disruptive startups and digital-native brands are rewriting
luxury’s rules. Sustainable materials, NFT collaborations,
and certified secondhand marketplaces like TheRealReal
democratise luxury access.
Product tokenisation is emerging, linking physical goods to
exclusive digital tokens granting access to events or content.
By 2030, physical and digital luxury will merge, creating
hybrid ownership experiences.

18
 Global Bay

What Global Headwinds Mean

for Luxury’s Next Chapter
EMERGING MARKETS DRIVE LUXURY GROWTH: NEW CONSUMERS,
EXPANDING MIDDLE CLASSES & LOCAL OPPORTUNITIES

Luxury’s growth is shifting. While China and the U.S. remain key players, emerging markets are taking center stage. Rapid
economic development and rising wealth in regions like India, Southeast Asia, Latin America, and Africa are creating millions
of new luxury consumers. Brands that understand and adapt to these diverse markets, local cultures, and values will unlock
unprecedented opportunities in the decade ahead.

Developing Markets: Majority of luxury growth shifts

India Southeast Asia Latin America
here over next decade.
Sub-Saharan Africa Middle East
China & U.S.: Still lead in volume but slower growth; China (Tier 2+) U.S.
China’s middle class expands beyond major cities. 60

India: Luxury spending to nearly quadruple by 2030;

UHNWI to grow 50% by 2028; tech-savvy 50
consumers rising.
Forecasted Luxury Market Growth (%)

Emerging Regions: Latin America, Southeast Asia, 40

Africa add 50M+ new luxury consumers by 2030.

Latin America: Brazil, Mexico, Chile to add 30

~177,000 new millionaires by 2027.

20
Sub-Saharan Africa: Demographic boom fuels luxury
potential, driving ~18% of global consumption
growth.
10

Southeast Asia: Malaysia, Philippines, Turkey,

Mexico drive luxury value; brands must adapt 0
locally.
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Middle East: UAE leads region; Saudi Arabia grows

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fast with projects like luxury stores in Jeddah.

19
 Global Bay

Luxury Frontiers: The Markets

Set to Lead Luxury Growth
Through 2030
DISCOVER HOW ASIA, EUROPE, AND THE AMERICAS ARE RESHAPING THE
FUTURE OF LUXURY WORLDWIDE.

Asia-Pacific leads luxury

growth, driven by emerging
markets and tourism. Europe
stabilises on tourism, the US
recovers modestly, and Latin
America shows new promise.

Asia-Pacific remains the largest luxury market, with Japan boosted by

a weak yen and inbound tourism. Mainland China’s luxury
consumption slowed in 2023 due to weak consumer confidence and
delayed outbound tourism recovery. Other markets like Hong Kong,
South Korea, and Taiwan have rebounded strongly with tourism
returns. Emerging Asia - India, Southeast Asia - and Latin America
are adding over 50 million new affluent consumers by 2030. China is
forecast to contribute 35-40% of global luxury sales by 2030,
highlighting Asia’s dominant role.
Europe’s luxury sales hold steady, supported mainly by tourism, with
strong spending in Southern Europe and resort areas, while Northern
Europe lags due to weaker local demand. The Middle East sees robust
growth in mature hubs like the UAE, with varying performance
elsewhere tied to political stability. Together, Europe and the Middle
East represent about a quarter of global luxury sales.
In the Americas, the US shows signs of recovery driven by domestic
wealth and tourism, while Canada remains weak. Latin America, led
by Mexico and Brazil, posts growth. The Americas account for
roughly 20-25% of global luxury sales, with the US particularly strong
in luxury cars and jewelry.

20
 Global Bay

Inside the Forces Fueling and

Challenging Luxury’s Rise
EXPLORING WEALTH, SUSTAINABILITY, AND EVOLVING
CONSUMER TRENDS SHAPING LUXURY THROUGH 2030.

The luxury goods market is on the cusp of significant growth, expected to expand steadily through 2030. This resurgence is
driven by an expanding base of high-net-worth individuals and a growing focus on sustainability - two factors reshaping how
luxury is created and consumed. Brands are increasingly tailoring offerings to younger, affluent consumers who value
exclusivity and eco-consciousness. Yet, challenges remain: the rise of second-hand markets and counterfeit goods, along with
lingering effects from the pandemic, continue to influence market dynamics. Understanding these drivers and hurdles is
essential for grasping the evolving luxury landscape.

21
 Global Bay

Key Drivers of Luxury

Goods Market Growth
01. Expanding Wealthy Population

Luxury primarily caters to high-net-worth individuals, and their growing numbers will propel market growth. For
example, as of early 2020, around 2,153 billionaires held more wealth than 60% of the global population combined.
Luxury brands are targeting millennials and Gen Z with personalised offerings - Louis Vuitton’s bespoke handbag
customisation is a prime example. The rising demand for exclusive fashion among affluent consumers supports
strong market momentum.

02. Sustainability Gains Traction

Sustainability is now central to luxury. Brands embrace eco-friendly raw materials and responsible production.
Plant-based leathers derived from pineapple and other natural sources replace traditional animal leather in
products like jackets and bags. Vikki Jones launched 100% vegan leather totes in 2020, highlighting growing
demand for ethical luxury. Brands like Junghans incorporate solar-powered watches made from recycled materials,
further promoting eco-conscious innovation. These initiatives are expected to significantly boost sustainable luxury
demand.

Challenges Facing the

Luxury Goods Market
01. Rise of Second-Hand and Counterfeits

The booming market for second-hand luxury and rental services poses a challenge to original luxury sales, as
consumers opt for more affordable alternatives. Additionally, counterfeit products mimicking luxury brands at
lower prices restrict market growth.

02. Pandemic-Driven Demand Decline

Luxury products, often seen as non-essential, suffered during COVID-19. Lockdowns and economic downturns
reduced purchasing power and necessity for premium goods. Event cancellations and travel restrictions further cut
demand, especially impacting duty-free sales. For instance, LVMH reported a 29% drop in perfumes & cosmetics
and a 38% decline in watches & jewelry revenue in early 2020 compared to 2019. Despite this, online sales saw gains
as retail stores closed, indicating a shift toward digital channels. As restrictions ease, online growth and pent-up
demand are expected to revive the market.

22
 Global Bay

5 Strategic Moves Luxury Brands

Must Make Now
As the luxury market continues to evolve, executives must navigate a rapidly changing landscape. To stay
competitive and secure long-term growth, brands must recalibrate their strategies. From refining core
values to embracing cutting-edge technology, the next decade presents an array of opportunities and
challenges. In this shifting environment, five strategic imperatives stand out as key drivers of success for
luxury leaders aiming to stay ahead. These priorities will ensure that brands not only adapt but thrive in
an ever-changing global market.

23
What Today’s Shifts Mean
for Tomorrow’s Luxury
Strategy
Luxury demand is surging most notably in Asia - driven by China’s rebound and
rapid growth in India and Southeast Asia - as well as within the booming experience
economy, including travel, hospitality, and wellness. This momentum is fueled by
macroeconomic factors like wealth creation and rising tourism, alongside shifting
consumer preferences toward younger, digitally engaged audiences. Amid slower
overall volume growth, luxury brands face the challenge of capturing value by
sharpening their brand propositions and deepening customer connections. Experts
from Bain and McKinsey emphasise that brands prioritising exclusivity, innovation,
and tailored service - while targeting both established high-end clientele and
emerging affluent consumers - will lead the way in this increasingly saturated market.
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JUNE 2025 Global Bay