A new study by Boston Consulting Group (BCG) and Altagamma shows that luxury consumers increasingly prioritise product quality, craftsmanship and longevity over conspicuous branding. According to the report, this shift in consumer values underpins the market’s recent return to growth.
György Lakatos‑Török, partner at Boston Consulting Group, summarised the change: “Over the past decade the visible expression of status, recognition and success defined luxury. Today those have been supplanted by personal values: self‑reward, leisure, health and a long, high‑quality life. The new measure of luxury is time and wellbeing.”
Market figures and forecasts
The report states that the global luxury market grew from €850 billion in 2015 to €1,021 billion in 2024, and reached €1,066 billion in 2025. After a 1 percent decline in 2024, the market expanded by 2.5 percent in 2025. BCG and Altagamma forecast that the personal luxury goods market could grow by 2–5 percent in 2026 and that growth may accelerate in subsequent years.
The decade between 2015 and 2025 also saw a shift in buyer composition: the share of occasional buyers (those spending under €2–5k per year on luxury) fell from 70 percent to 50 percent. At the same time, the role of highly committed, high‑spending customers increased, and spending on experience categories — fine dining, hotel services and exclusive travel — became more significant.
The top segment of the market, defined by annual spenders of at least €50,000, rose from roughly 400,000 people in 2015 to 700,000 in 2025. In 2025 these consumers spent an average of €420,000 per person on luxury goods, increasing this segment’s share of the market from 13 percent in 2015 to 24 percent in 2025.
Product back in focus; branding challenged
A central finding of the study is that buyers increasingly look behind the brand name to what the product embodies: refined design, artisanal skill and durability. Conspicuous logos have lost importance and the product itself has regained primacy. Brands that continue to rely mainly on ostentatious status signalling are reaching a shrinking audience.
The research also questions a common industry myth: although fashion press often focuses on creative directors, most luxury shoppers cannot name the creative lead of a brand they buy from regularly. Creative vision remains important for brands, but purchase decisions are driven more by the product.
Price sensitivity and switching behaviour
Seventy percent of respondents said they had walked away from a purchase because of price — they perceived a breakdown between price and perceived value. Rather than lowering standards, most consumers in such cases switched to a different product or brand.
Artificial intelligence reshaping luxury shopping
Artificial intelligence has rapidly become a key adviser in luxury buying. Nearly 90 percent of respondents said they regularly use AI‑based tools to search for luxury goods or experiences. Thirty‑nine percent use such tools daily, and even among baby boomers 56 percent use AI applications at least weekly.
Brand websites top consumers’ trust rankings, but confidence in generative AI tools is roughly on par with traditional internet search and approaches the level of personal recommendations. Consumers expect brands to deploy AI; they perceive AI‑based answers as more neutral and less biased, in part because they are not tied to sponsored content. Shoppers deem AI more reliable than social media or influencers.
Implications for brands
The study implies that luxury brands must adapt their product development and communications to emphasise lasting quality, craftsmanship and customer wellbeing. Integrating AI‑based tools is also increasingly expected by consumers and will be essential for brands aiming to remain competitive in the evolving market.
