Luxury Faces First Real Decline in 15 Years as 50 Million Consumers Exit

the luxury market from 2022–2024, with 40% of shoppers criticizing brands as “overpriced”. China’s Decline: Mainland China’s luxury spending plummeted 20–22% in 2024 due to weakened consumer confidence and a resurgence in overseas tourism.

Only 5% of brands saw growth there, as shoppers favored understated designs and secondhand platforms. Experiential Shift: Luxury experiences (travel, dining, wellness) grew 5%, outpacing goods. The hospitality sector surged 4% to €242 billion, fueled by high-net-worth demand for exclusive itineraries and wellness tourism.

Japan Thrives, Europe Holds Steady, Americas Mixed Japan: Became the fastest-growing market (+12–13%), driven by favorable exchange rates and tourist inflows. Tax-free luxury spending soared, though local consumption softened post-price hikes.

Europe: Growth of 3–4% was buoyed by tourism, with southern Europe (Italy, Spain) outperforming the UK and Germany. Tax-free sales to Chinese tourists in Europe rose 40% year-over-year. Americas: The U.S. showed resilience (+4–6% projected through 2027), while Latin America (Mexico, Brazil) emerged as bright spots…