US leads luxury market into gradual stabilisation
Despite a backdrop of growing instability - characterised by economic volatility, geopolitical tensions and cultural shifts - the fundamentals of the high-end market point toward gradual stabilisation, according to consultancy Bain and Italy’s luxury association, Altagamma.
In 2025, the global luxury market saw a slight decline, settling at around €1.4 trillion, with personal luxury goods at €358 billion (-2% at current exchange rates compared with 2024).
The Americas are leading this market, while Europe and the Middle East are seeing a decline, and China is showing a cautious recovery.
Leathergoods and footwear remain under pressure, though they are showing signs of gradual improvement, according to the report.
There has also been a boom in sports sponsorships over the past 12 months, with 80% of the luxury market’s total value accounted for by brands that have invested specifically in sporting events.
Giovanna Vitelli, president of Altagamma, said: "Bain & Company has reminded us that projected growth for the luxury sector as a whole through 2026 is moderate, with the exception of experiential luxury, which is forecast to grow by 4%.
“Our companies embody our country’s cultural heritage, its art of living, and its craftsmanship. Supporting the growth of the luxury sector also means supporting the preservation of 'Made in Italy' manufacturing, another cornerstone of Altagamma’s agenda for the next three years.”
Federica Levato, senior partner at Bain & Company, added: "The market is stabilising, but this is not a return to the old pace; rather, a new rhythm is emerging. Consumers are not turning away from luxury; they are redefining its meaning. They connect more with the significance than the product and increasingly value experiences over ownership, driven by a desire for identity and self-expression rather than status.”
Image: Altagamma member Bottega Veneta
