Global personal luxury goods spending holds steady as currency effects weigh

Looking ahead, the firm expects solid underlying growth over the next decade as the global luxury customer base expands.

Global personal luxury goods spending is expected to reach €358b in 2025, compared with €364b in 2024, according to Bain & Company’s latest Snap Chart.

The 2% headline decline reflects currency effects, with the market described as flat at constant exchange rates, outperforming midyear expectations.

Bain said momentum improved sequentially through the first three quarters of 2025, with constant-currency growth strengthening as the year progressed. Jewelry, eyewear, and fragrances were the strongest categories, whilst shoes and leather goods showed signs of weakness.

Regionally, the Middle East remained a bright spot. The Americas were stable, supported in part by late-2025 gains in US equity markets. China continued to slow but performed better than earlier in the year, and Japan softened after its sharp rebound in 2024.

Operating costs and pressure on full-price sales continued to squeeze profitability. Bain noted that brands are turning to performance improvement measures and AI-enabled efficiency, whilst aiming to maintain product desirability.

Looking ahead, the firm expects solid underlying growth over the next decade as the global luxury customer base expands. It also said the post-Covid price-elevation cycle is ending, with mid-tier aspirational demand under strain.

Bain argued that the sector’s winners will be those able to rebuild value and relevance for a more fragmented, experience-driven consumer landscape.