The global luxury market remains resilient despite ongoing macroeconomic and geopolitical disruptions. According to Euromonitor International’s World Market for Luxury Goods 2025 report, its total value is estimated at $1.5 trillion (€1.4 trillion) in 2025.
The industry is currently undergoing significant change. It is moving away from purely product-centric sales towards experience-focused engagement. “Wellness, lifestyle and emotional resonance are becoming new status symbols,” said Fflur Roberts, global insight manager for luxury goods at Euromonitor International.
Brick-and-mortar retail accounted for 81 percent of luxury goods sales in 2025, underscoring the continued importance of personal contact. Notably, 52 percent of high-income shoppers prefer to purchase fashion in-store, up from 36 percent in 2023.
Growth in emerging markets and experiential luxury
The fastest growing markets include South Africa (+15 percent), India (+10 percent) and the United Arab Emirates (+9 percent). India in particular is becoming an important player. The total value of the luxury market there is expected to reach $12.1 billion (€11.1 billion) by 2025. A staggering compound annual growth rate (CAGR) of 74 percent is expected over the forecast period.
Overall luxury spending is shifting toward experience-focused categories as younger shoppers increasingly seek unique experiences rather than products. Experiential luxury, including luxury travel and hospitality, was the fastest growing segment. It grew by eight percent in 2025 and reached 103 billion US dollars (95 billion euros).
New target groups
The luxury sector is increasingly influenced by the 60+ age group. This group is becoming increasingly affluent and seeking sophistication and enjoyment through luxury offerings that improve their quality of life. These include, for example, wellness trips and age-appropriate luxury skin care.
This evolution, combined with consumers’ turn to experiences and lifestyle as new status symbols, is driving brands to reinvent their brick-and-mortar stores. They are intended to become cultural attractions that offer high-quality care and concierge-level service.
Roberts concluded that the future growth of the luxury sector “will depend on its ability to adapt to these evolving consumer opportunities.” This is done by rethinking premium experiences from the perspective of durability and conscious enjoyment.
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