2025
9
US Luxury Consumer: 2025
2025-08-20T15:24:16+00:00
REP97BEED8D_0010_4C96_96AA_2BC050E04C33
3695
185805
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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…
US
Prestige/Luxury Goods
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US Luxury Consumer: 2025

The luxury landscape is shifting as economic pressures and a global slowdown impact the sector.

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Market predictions
    • What consumers want and why
    • Opportunities
    • Key opportunities
  2. 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
  3. 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
  4. 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
  5. 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
Download Report Summary

"Economic pressures, price elevation and evolving consumer preferences are testing the luxury value proposition among affluent buyers and aspirational enthusiasts alike."

Brittany Steiger, Principal Analyst - Retail & eCommerce

Brittany Steiger, Principal Analyst - Retail & eCommerce

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 AttributesDetails
Published DateAugust 2025
Report AuthorBrittany Steiger, Principal Analyst – Retail & eCommerce
Consumer Data2,000 internet users aged 18+ (Genpop); 1,000 internet users aged 18+ with household investable assets $500K+, March 2025
Demographic SegmentationNew 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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