The evolving landscape of the luxury industry highlights a significant shift from material possessions to experiential value and lifestyle integration. Amid economic challenges and changing consumer expectations, luxury brands are prioritising authenticity, immersive environments, and community-driven experiences. This transformation spans many sectors like hospitality, wellness, and home - while also considering the role of the retail channel for future growth.
Key findings
From product-focused models to experience-driven engagement
The luxury industry continued its path to recovery in 2025, showing modest growth. However, leading players are facing pressures from sluggish global expansion, evolving consumer trends, rising capital costs, geopolitical uncertainty, climate change and deglobalisation. Strategic investments in experience and lifestyle could help bridge gaps and strengthen brand equity.
The rise of experiential luxury in a values-driven market environment
With over 70% of affluent consumers now prioritising experiences over possessions, luxury brands are shifting focus towards immersive, service-led offerings - ranging from private wellness retreats to experiential retail and exclusive events and programmes - to deepen emotional engagement and remain relevant in an increasingly values- and purpose-driven market.
Adapting to shifting luxury consumer need states
As luxury evolves beyond materialism, consumers are increasingly driven by need states such as emotional wellbeing, personal growth, connection and purpose. To stay relevant, brands must become more agile and attuned to these shifting desires - integrating these need states into their offerings. This interdisciplinary, lifestyle-focused approach is reshaping luxury into a purpose-led experience that meets deeper emotional and psychological needs, fostering stronger brand loyalty and engagement.
The “third space” blurs the lines between home, work, retail and leisure.
As consumers seek more meaningful, flexible and emotionally-resonant experiences, third spaces are evolving into strategic platforms for luxury brand engagement, retail sales, community-building and lifestyle integration, making them a critical frontier and alternative touchpoint to stay relevant in the next era of luxury. The future lies in creating ecosystems of care, creativity and connection that transcend traditional retail categories.
The Redefining Luxury: From Product to Purpose, Lifestyle, and Value global briefing offers an insight into the size and shape of the luxury goods industry, highlights buzz topics, emerging trends as well as pressing industry issues, their effects on luxury goods retailing in markets around the world and on the development of consumers’ shopping patterns. Forecasts illustrate how the market is set to change and criteria for success. In short, it identifies the opportunity zones within luxury goods industry
Product coverage: Experiential Luxury, Fine Wines/Champagne and Spirits, Personal Luxury, Premium and Luxury Cars.
Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.
Why buy this report?
- Get a detailed picture of the Luxury Goods market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market’s major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop.
