The ultra-rich held up the global luxury goods market this year despite global economic and political uncertainties, and refocused their spending away from traditional luxury goods and toward high-end experiences like vacations and fine dining, according to a new report.
Key data
Global spending in the luxury sector is expected to reach $1.66 trillion by the end of the year, according to a study by Bain & Company and Altaggamma, remaining stable from last year despite a declining customer base and lower spending by lower-net-worth buyers, also known as “aspirational” buyers.
There has been a sea change in luxury spending so far this year, with consumers investing in experiences such as luxury cruises, high-end hotel stays, yachts, private jets and fine dining, and spending less in the traditional realms of luxury cars, fine art and leather goods.
Spending on luxury cruises increased 12% this year compared to 2024 at constant exchange rates, according to the report. Spending on private jets and yachts grew by 11%, spending on fine dining restaurants grew by 7%, and spending on luxury hospitality grew by 7%.
In contrast, spending on personal luxury items has remained stable, spending on luxury cars has decreased by 4% and spending on works of art has decreased by 7%.
Overall, the luxury market’s consumer base has shrunk to about 340 million buyers in 2025, down from 400 million in 2022. However, large consumers are still present and represent almost half of the market.
What to take into account
While the personal luxury goods market remains stable, Bain and Altagamma warn that the industry faces a turning point due to economic and geopolitical uncertainties. Watch sales, hit by high tariffs to Switzerland, are driving a resale market, the report said, and leather goods are faltering in the absence of a handbag to drive sales. Jewelry and eyewear lead growth, but sales of footwear, skin care products and makeup suffer.
Also read: EU reduces tariffs on Swiss products in trade agreement: it benefits these luxury items
Crucial ideals
“This is luxury’s defining moment: rise through ethics, inclusivity and authenticity, or retreat toward elitism,” said Claudia D’Arpizio, luxury goods leader at Bain & Company.
Tangent
French luxury goods conglomerate LVMH, owner of brands such as Tiffany & Co., Louis Vuitton, Hennessy, Dom Pérignon and others, reported no growth this year until the third quarter. Most of the year was affected by tariffs and other economic disruptions, the company reported, but organic growth rebounded in the third quarter to 1% year over year.
Surprising fact
Despite the decline in fine art sales—which fell 12% between 2023 and 2024—several high-value auctions exceeded expectations this week. Gustav Klimt’s “Portrait of Elisabeth Lederer,” one of only two full-length portraits of Klimt remaining in private hands, sold for $236.3 million as part of the personal collection of the late cosmetics magnate Leonard Lauder, far exceeding its $150 million estimate.
An abstract painting by Mark Rothko sold for $62.1 million on Monday, above its estimate of $50 million, and Gustav Klimt’s “Blumenwiese” (“Blooming Meadow”) sold for $86 million (estimate: $80 million). Sotheby’s also sold a famous solid gold toilet that was once offered to President Donald Trump for $12 million.
This article was originally published in Forbes US
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