Wealthy clients are increasingly prioritizing experiences over material possessions, according to a new report from Bain & Company. Global luxury spending totaled €1.4 billion (approximately $1.7 billion) in 2025, as the sector shows signs of stabilization heading into the second half of 2026. The report maps a market reshaped by four forces: a pivot toward experiences, regional growth rebalancing, evolving definitions of luxury, and AI-driven disruption of the purchase journey.
Consumer sentiment toward experiences now outpaces tangible goods by a factor of 1.5x so far in 2026, reflecting a structural shift from ownership to lived moments. Luxury hospitality, private jets, yachts, and cruises are proving resilient, driven by premiumization and new customer acquisition. Fine dining benefits from a “less but better” mindset, with immersive bookings across dining, leisure, and entertainment up 30% year-on-year. Travel to destinations beyond traditional hotspots has grown 20%.
The personal luxury goods segment edged down to €358 billion ($408 billion) in 2025, from €364 billion ($415 billion) the year before, a 2% decline at current exchange rates though a 1% gain at constant rates. Bain projects a recovery to between €365 and €373 billion ($416 billion and $425 billion) this year under its base case scenario, representing growth of 2% to 4%, which it assigns a 70% probability.
The first half of 2026 brought macro headwinds. Middle East conflict pushed oil prices higher, U.S. inflation reached its steepest point since April 2023, and consumer confidence hit an all-time low. The European Central Bank raised interest rates in June for the first time since 2023. Luxury share prices fell roughly 8% in January, and international tourism to Europe dropped 20% year-on-year in February before partially recovering.
Consumers under 35 are spending at a rate about four percentage points faster than older cohorts, while upper-middle-class households are growing their luxury spending at roughly twice the rate of wealthier buyers, suggesting the market is broadening its base. Within personal luxury goods, jewelry leads performance; apparel, eyewear, and fragrances are holding up; cosmetics lag; and leather goods and footwear remain under pressure, though both show signs of improvement. Luxury cars continue to drag amid the EV transition, while fine wines and spirits face softer consumption as buyers reduce frequency or switch to alcohol-free alternatives.
The resale market is booming: vintage bag online searches have more than doubled year-on-year, and roughly half of all luxury shoppers now check the secondhand market before buying new. In watches, connoisseurship is overtaking hype, with collectors increasingly rewarding craftsmanship and rarity. Approximately half of luxury buyers already use AI somewhere in their purchase process, and nearly all plan to continue. About one in four use it for brand and product discovery, while two in three use it for product comparison.
Bain’s broader analysis finds that the meaning of luxury is shifting from social validation toward self-actualization—a focus on personal fulfillment over the desire to be admired. “The appetite for luxury remains strong. The tolerance for disappointing experiences or products does not,” said Federica Levato, Bain senior partner and leader of the firm’s EMEA Fashion & Luxury practice. “Over 70% of customers who have left luxury intend to return—but not necessarily to the same brands.”
For advisors, these trends underscore the importance of understanding client spending patterns, particularly as the global ultra-wealthy population hits a record 556,850 and as AI reshapes wealth management by 2030. The shift toward experiences may also influence longevity-driven luxury real estate demand, as clients seek properties that support lifestyle aspirations.
