Luxury Consumer in the US – Trends and Insights
- The luxury landscape is shifting as economic pressures and a global slowdown impact the sector. While consumers still value quality and craftsmanship, rising prices have weakened the appeal.
- More than 60% of luxury consumers report buying fewer luxury items due to price increases, and more than half feel the quality no longer justifies the cost.
- The purchasing power of aspirational luxury buyers is declining, narrowing the focus to affluent and high-net-worth individuals (AHNW). This has created a divide, with AHNW consumers maintaining ties to ultra-luxury brands, while aspirational shoppers opt for more affordable options.
- Significant potential lies with Gen Z and Millennials, who are set to earn and inherit wealth, and are expected to dominate the luxury market by 2030.
- Overall, the near future will be turbulent, requiring fresh value-creation strategies. Transparency in quality, production and authenticity will be vital to sustaining trust and justifying the value of luxury goods and services.
Key Topics Covered in the Report:
- Demographics and preferences of luxury shoppers and of affluent/high-net-worth consumers
- How consumers define and perceive luxury purchases and the concept of luxury
- Luxury purchases, including both tangible luxury goods and luxury services or experiences
- Motivations and barriers to purchasing luxury products and services
- Attitudes toward luxury and luxury purchases
- Sources of information for learning about luxury products/brands
- Interest in luxury concepts or shopping options
- Brand innovation and marketing activations in the luxury market
| Report Attributes | Details |
|---|---|
| Published Date | August 2025 |
| Report Author | Brittany Steiger, Principal Analyst – Retail & eCommerce |
| Consumer Data | 2,000 internet users aged 18+ (Genpop); 1,000 internet users aged 18+ with household investable assets $500K+, March 2025 |
| Demographic Segmentation | New luxury shoppers: 960 internet users aged 18+ who purchased a luxury product/service in the last two years Aspirational luxury enthusiasts: 429 internet users aged 18+ who have not purchased a luxury product/service in the last two years, but aspire to do so in the future. General population (Genpop): internet users aged 18+; this group is representative of the US adult population as a whole, and includes adults who may also fall into the AHNW category. Affluent/High-Net-Worth (AHNW) consumers: internet users aged 18+ who have a total net worth of $500K-$999.9K (affluent)/internet users aged 18+ who have a total net worth of $1m+ (HNW). |
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EXECUTIVE SUMMARY
- What you need to know
- Market predictions
- What consumers want and why
- Opportunities
- Key opportunities
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MARKET DYNAMICS
- Market context
- Market drivers
- The price of luxury goods has soared in recent years
- Tariffs add further uncertainty to a challenged luxury sector
- High-net-worth Americans gain wealth and influence
- Graph 1: HNWI financial wealth in USD trillions, 2025
- Generational shifts create complexity
- Poised to inherit wealth, younger generations represent the future of the luxury market
- Graph 2: projected population by generation in 2029
- Graph 3: median net worth of consumers in US dollars (thousands), by age, 2019 and 2022
- Luxury consumers are diversifying
- Consumers are increasingly concerned about the ethics of luxury brands
- Graph 4: attitudes toward luxury brand ethics, by generation (Genpop), 2025
- Market landscape
- The luxury market navigates a slowdown
- Americas region accounts for nearly quarter of global luxury sales
- Graph 5: percentage analysis of sales by region, 2023
- Fashion and leather goods accounts for largest category share
- Graph 6: percentage analysis of sales by product category, 2023
- The middle tier is being squeezed
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CONSUMER INSIGHTS
- Consumer fast facts
- Who is the luxury consumer?
- The affluent/high-net-worth consumer
- Affluent and High-Net-Worth consumers are typically older and mostly White
- Affluence and luxury are not mutually exclusive
- Graph 7: luxury purchase history in the last two years, Genpop vs AHNW consumers, 2025
- Affluent luxury shoppers are limited in number
- The new luxury shopper
- New luxury shoppers skew younger, but some are being priced out
- Aspirational luxury enthusiasts
- Aspirational Enthusiasts have the drive but lack the spending power
- Meaning of luxury
- Quality, exclusivity and prestige
- Graph 8: meaning of “luxury”, Genpop vs AHNW consumers, by luxury shopper segments, 2025
- Luxury means different things to different people
- Younger generations bring fresh perspectives
- Graph 9: meaning of luxury, Genpop vs AHNW consumers, by age, 2025
- Defining the luxury narrative
- Cultural perspectives shape perceptions of luxury
- Graph 10: meaning of luxury, by Race and Hispanic origin (Genpop), 2025
- Defining characteristics of luxury brands
- Quality craftsmanship and brand heritage define luxury purchases
- Graph 11: defining characteristics of luxury purchases, Genpop vs AHNW consumers, by luxury shopper segments, 2025
- Increasingly high expectations require compelling brand narratives
- Graph 12: defining characteristics of a luxury purchases, 2014-25
- Bottega Veneta’s “Craft is our Language” campaign centers conversation on craftsmanship and quality
- Generational shifts are reshaping the definition of luxury
- Graph 13: defining characteristics of luxury purchases, Genpop vs AHNW consumers, by gender and age, 2025
- Meeting the evolving needs of luxury consumers
- A preference for timeless, classic styles has life beyond “quiet luxury”
- Graph 14: attitudes toward luxury products, Genpop vs AHNW luxury shoppers, 2025
- Rising “heirloomcore” trend elevates independent brands and bespoke details
- Attitudes toward luxury and luxury purchases
- Price increases are eroding value perceptions
- Graph 15: attitudes toward luxury and value, Genpop vs AHNW consumers, by luxury shopper segments, 2025
- Luxury brands must also focus on value creation and accessibility
- Graph 16: attitudes toward luxury shopping, Genpop vs AHNW consumers, by luxury consumer segments, 2025
- Younger affluents are highly engaged and savvy about spending
- Graph 17: attitudes toward luxury and value, Genpop vs AHNW consumers, by age, 2025
- Dupes fill the void for young and aspirational buyers
- Exclusivity is still a key part of the appeal
- Graph 18: attitudes toward exclusivity, Genpop vs AHNW consumers, by key demographics, 2025
- Luxury products purchased
- Apparel and personal goods dominate luxury purchases
- Graph 19: major categories of luxury items purchased, Genpop vs AHNW consumers – NET, 2025
- Graph 20: luxury items purchased, Genpop vs AHNW consumers, 2025
- Luxury pieces are an investment
- Younger affluents lead luxury purchases across categories
- Graph 21: luxury items purchased, Genpop vs AHNW consumers, by age, 2025
- Both men and women purchase luxury products
- Graph 22: luxury items purchases, Genpop vs AHNW consumers, by gender and age, 2025
- Leading luxury brands build cultural cachet
- Luxury fashion must stay culturally relevant to resonate with diverse audiences
- Target urban dwellers for luxury home upgrades
- Graph 23: luxury home appliance and furnishings purchases, Genpop vs AHNW consumers, by location of residence, 2025
- Luxury services and experiences
- Luxury spending pivots from goods to experiences
- Graph 24: attitudes toward luxury experiences, Genpop vs AHNW consumers, by luxury shopper segments, 2025
- Consumers aspire to the luxury lifestyle
- Graph 25: luxury services and experiences purchased, Genpop vs AHNW luxury shoppers, 2025
- Younger affluent adults want it all
- Graph 26: luxury services and experiences purchased, Genpop vs AHNW luxury shoppers, by age, 2025
- Tourism, wellness and fashion converge to redefine hospitality
- High-end brands leverage partnerships to elevate the travel experience
- The future of luxury living will be personalized and frictionless
- Concierge and personal services are gaining traction
- Motivations for buying luxury goods and services
- Consumers buy luxury to treat themselves and celebrate special occasions
- Graph 27: reasons for buying luxury, Genpop vs AHNW consumers, 2025
- Diverse motivations between affluent and new luxury shoppers
- Women look for opportunities to treat themselves, while men are more likely to seek a confidence boost
- Graph 28: select reasons for buying luxury, Genpop vs AHNW consumers, by gender, 2025
- Generational nuances reflect changing motivations
- Graph 29: reasons for buying luxury, Genpop vs AHNW consumers, by age 2025
- Younger adults are more driven by image and investment potential
- Barriers to buying luxury
- Barriers to buying luxury are vast and nuanced
- Graph 30: barriers to buying luxury, Genpop vs AHNW non-buyers, 2025
- Stark differences between Aspirational Enthusiasts and other non-buyers
- Graph 31: barriers to luxury purchase, Aspirational Enthusiasts vs non-aspirational non-buyers, 2025
- Create opportunity among “silver spenders”
- Graph 32: barriers to luxury purchases, by age (Genpop), 2025
- Interest in luxury shopping options and concepts
- Consumers are interested in a variety of luxury shopping concepts
- Graph 33: consumer interest in luxury shopping options/concepts, Genpop, 2025
- Accessibility, authentication and service top the list
- Luxury consumers are interested in new concepts, but AHNW shoppers are more skeptical of gimmicks
- Graph 34: interest in luxury shopping options and concepts – NET, Genpop vs AHNW consumers, by luxury shopper segments, 2025
- Younger affluents are a driving force behind innovation
- Graph 35: interest in luxury shopping options/concepts – Very interested, Genpop vs AHNW consumers, by age, 2025
- Accessible luxury options help even the playing field
- Graph 36: interest in affordable luxury concepts, Genpop vs AHNW consumers, by luxury shopper segments, 2025
- Sources of influence and information
- Brand reputation is paramount in luxury
- Graph 37: sources of influence and information on luxury on products/services, Genpop vs AHNW consumers, 2025
- Differentiating between AHNW consumers and new luxury shoppers
- Young affluents have more varied spheres of influence
- Graph 38: sources of influence and information, Genpop vs AHNW consumers, by gender and age, 2025
- Brands must be wary about misinformation on social media
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INNOVATION AND MARKETING STRATEGIES
- Parisian luxury department store Printemps lands in New York City
- Coach builds brand affinity with Gen Z
- Coach’s array of initiatives build resonance with younger shoppers
- Membership clubs gain popularity as luxury consumers seek exclusivity
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APPENDIX
- Affluence and luxury are not mutually exclusive
- Price increases are eroding value perceptions
- Consumers buy luxury to treat themselves and celebrate special occasions
- Luxury brands must also focus on value creation and accessibility
- Market definition
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations and terms
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