According to a report from Bain & Co. and Altagamma, personal luxury goods sales are projected to reach between 365 billion euros and 373 billion euros (approximately US$413.6 billion to US$422.7 billion) in 2026, marking a growth of 1% to 4% after two years of declines.
The report emphasizes that while luxury goods sales are recovering, the focus is increasingly on experiences such as travel, dining, and events, which are expected to grow by 3% to 7% this year. Notably, the U.S. has emerged as the leading market for luxury goods growth, driven by aspirational consumers.
The report also highlights the impact of geopolitical tensions in the Middle East on luxury sales, particularly in Dubai, which has not yet recovered from the effects of the Iran war. Claudia D'Arpizio, a senior partner at Bain & Co., noted that luxury is becoming more about lifestyle and personal experiences rather than mere ownership of status goods.
Trends such as 'inheritourism,' where wealthy families travel together, and a preference for unique travel experiences are reshaping consumer behavior. Overall, consumers are not just spending more but are also prioritizing authenticity and personal significance in their luxury purchases