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The global luxury industry is at a crucial turning point. After years of steady expansion, the personal luxury goods market is witnessing a slowdown in 2025, with flat to slightly negative growth expected. However, a new report by BCG—True Luxury Global Consumer Insights 2025—highlights a major market shift where ultra-wealthy consumers are emerging as the primary drivers of long-term growth.
While aspirational consumers, once the entry point for many luxury buyers, are retreating due to affordability concerns, top-tier clients are now fueling the industry. This elite group, representing just 0.1% of the population, accounts for 23% of all global luxury spending.
India, though not yet the “next China,” is increasingly becoming a must-watch market for global luxury brands. With its high-net-worth (HNW) and ultra-high-net-worth (UHNW) population expected to grow at an impressive 11–15% CAGR through 2034, the country offers significant opportunities for brands seeking deeper engagement with affluent consumers.
Key Insights from the Report
Aspirational buyers losing ground: Their share of the luxury market has dropped by 15 percentage points, eroding the base for mass-luxury strategies.
Luxury at risk of losing its soul: In the race for scale, many brands diluted exclusivity, exposing themselves to volatility as aspirational consumers pull back.
Top-tier clients define the future: Resilient brands focus on ultra-spenders, who spend €355,000 annually on luxury and belong to an HNWI audience of over 900,000 individuals growing ~10% annually.
Luxury beyond ownership: For top clients, luxury is increasingly about lifestyle orchestration, wellness, and personalized experiences rather than just products.
Gap between expectation & reality: Ultra-affluent consumers seek intimacy, recognition, and excellence but find luxury offerings “too noisy, crowded, and industrialized.”
The study urges brands to return to core luxury fundamentals—craftsmanship, personalization, and deep client relationships, leveraging high-touch human experiences enhanced by generative AI.
As India’s wealth creation accelerates and a young, brand-conscious demographic rises, luxury players are expected to pivot toward bespoke experiences and localized strategies tailored for this emerging powerhouse market. BCG’s True Luxury Global Consumer Insights 2025 surveyed luxury buyers across all spending tiers worldwide, with a special focus on ultra-high-spending consumers shaping the future of the industry.
