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

According to Bain & Company’s Luxury in Transition: Securing Future Growth report, the global luxury market contracted slightly in 2024, with overall spending declining 1–3% to €1.48 trillion.

The personal luxury goods segment—spanning apparel, watches, and leather goods—saw its first real-term slowdown in 15 years (excluding the pandemic), dropping 2% to €363 billion. This recalibration reflects macroeconomic pressures, shifting consumer priorities, and a stark divide between thriving and stagnating regional markets.

Key Drivers of the Slowdown Price Sensitivity: Over 80% of past luxury growth relied on price hikes, but aspirational consumers now resist further increases. Bain notes that 50 million customers exited 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…