Finding a New Longevity for Luxury

Bain & Company

Research

36 Pages

Bain and Company explains why luxury is shifting from a post boom normalization into a more selective growth era. Global luxury spending hit about €1.44 trillion in 2025, yet the industry lost roughly 20 million consumers as aspirational demand cooled. Margins are the real warning sign, with profitability sliding toward mid teens as costs rise and discounting creeps back.

Date published: December 2025

Key Takeaways

Market held flat: 2025 luxury spending totaled €1.44 trillion, down about 1% to 3% versus 2024.
Consumers walked away: About 20 million fewer luxury buyers in 2025 as frequency fell and trade down rose.
Margins reset lower: Operating margins fell to about 15% to 16%, down from 21% in 2022.
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