Market is shrinking The rich will only spend 1,400,000,000,000 francs on luxury
Expensive cars, drinks and art are finding fewer buyers, but the rich are spending more money on fine dining and travel. The really big status symbols are also on the rise.
24.11.2025, 13:13
dpa
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- The global luxury market will lose around CHF 54 billion in 2025, falling for the second year in a row.
- Luxury cars, fine wines, spirits and art in particular are weighing on the balance sheet.
- In contrast, there is growth in hotels, restaurants, cruises - and in yachts and private jets.
The global luxury market is shrinking. A study by management consultants Bain & Company and the Italian luxury goods association Fondazione Altagamma forecasts that 1.44 trillion Swiss francs will be spent on expensive cars, fine dining, yachts, private jets and the like in the current year. This would be the second decline in a row. In 2024, it was still 34 billion more, compared to 2025, there would be a drop of 54 billion francs.
The decline is unusual, as the luxury market is growing in the long term. In 2019, it was 169 billion francs less than it is currently, and Bain is also predicting significant growth for the future: by 2035, it is expected to reach a total of 2.2 to 2.7 trillion francs.
What is behind the decline
In the current year, it is primarily the weakening sales of luxury cars that are causing the decline. At 545 billion francs, they still account for more than a third of expenditure, but are down by 6 percent. Spending on fine wines and spirits is also down - by 5 percent to 93 billion.
Even 9% less will be spent on art: according to the study, CHF 31 billion. According to the forecast, 358 billion will be spent on personal luxury goods - 2 percent less than a year ago. Here, however, it is exchange rate effects that are responsible for the minus - if they are factored out, this area is stable, while the others mentioned are shrinking more slowly.
More money for experiences
By contrast, other areas continue to grow: CHF 251 billion is spent on luxury hotels and similar accommodation, which is 3% more than a year ago. Spending on expensive food and restaurants rose by 5 percent to 74 billion francs and on luxury cruises by 10 percent to 6 billion francs.
According to Bain, luxury is increasingly being defined by experiences and no longer solely by possessions. The classics among the purchasable status symbols are nevertheless growing strongly. Bain expects private jets and yachts to be worth 34 billion Swiss francs - 9 percent more than a year ago.
Which markets are weakening
Looking at the world regions, the luxury market is weakening in China and Europe in particular. In the Middle East, on the other hand, experts expect further growth in the current year.
However, the number of customers is declining significantly. While Bain had identified a base of 400 million people in 2022, around 60% of whom were active buyers, this figure is currently down to 340 million, 40% to 45% of whom are active buyers. However, experts expect the consumer base to grow again in the future.
