How the U.S. Became the World’s Largest Online Luxury Market in 2025

as the largest luxury market overall. American luxury sales are expected to rise by 7% in 2025, making the U.S. a critical growth driver for the industry. Meanwhile, China faces ongoing economic headwinds that have impacted its luxury market.

Despite China’s traditional retail strength, with annual revenues reaching up to $110 billion, Chinese consumer spending on luxury goods is projected to decline by 1% this year. The country’s property crisis and economic slowdown have prompted even affluent Chinese consumers to “trade down” to mid-tier brands.

AI Transformation: The New Competitive Edge Artificial intelligence has emerged as a transformative force in the luxury market, valued at $1.2 billion in 2024 and expected to exceed $5.6 billion by 2034.

The global AI market in luxury is expected to reach $3 billion by 2025 alone, with 78% of luxury firms considering AI a strategic priority for the next three years. “AI is changing how luxury brands connect with their customers,” notes industry analysis from Vertu…