That’s according to a recent report by market researcher Bain & Company and the Italian luxury goods industry organisation Altagamma, which found that the global luxury market reached $USD1.64 trillion ($AUD2.36 trillion) in 2025. Jewellery was the top-performing category in global luxury spending, exceeding apparel, eyewear, and fragrances.
Globally, personal luxury spending fell modestly year over year. The decline was uneven across regions: sales of personal luxury goods increased in the Americas, China experienced a cautious recovery, while Europe and the Middle East lagged.
Among the more interesting points was that younger US consumers increased their spending by about 4 per cent compared with those over 35. In China, online luxury sales increased 25 to 35 per cent year-on-year in the first quarter.
Bain expects personal luxury spending to increase by two to four per cent in 2026, potentially reaching $USD425.44 billion ($AUD614.50 billion). Claudia D'Arpizio, senior partner and global leader of Bain & Company's fashion and luxury practice, emphasised a shift in how consumers engage with luxury.
“The luxury market is stabilising, but this is not a return to the old rhythm – it is the emergence of a new one,” he said.
“Consumers are not stepping back from luxury. They are stepping forward into a new relationship with it – one defined by meaning, not just by product.”
The secondhand market is also expected to continue to expand, with about half of luxury consumers considering secondhand purchases before buying new items.
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