After two years of sluggish demand, the luxury market will return to growth in 2026, up between 3% and 5%, according to the latest report from management consultancy Bain, in partnership with Italian luxury goods association Altagamma.

The organizations expect 2025 spending to close broadly flat at €1.44 trillion (between -1% and 1% growth). The personal luxury goods market is expected to reach €358 billion by the end of the year, compared to €364 billion last year and €369 billion in 2023 — a 2% year-on-year decline at current exchange rates, and flat at constant rates.

It’s a promising light at the end of the tunnel after a prolonged slump for luxury. In 2024, the market contracted for the first time (excluding Covid) since the great recession. The market shrunk by 2%, and luxury lost

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