The global luxury goods industry is entering a new phase of development in which the quality of growth, rather than its pace, is becoming the priority. According to the “Global Powers of Luxury Goods 2026” report prepared by the advisory firm Deloitte, 66.9% of senior executives expect stable or rising revenues despite an unfavorable economic environment. At the same time, more than 80% of industry leaders anticipate adjusting prices to market conditions in order to protect profitability amid moderate demand.
In the coming period, companies plan to shift from volume-driven expansion toward profitability, selective investment, and building long-term customer relationships rather than focusing on one-off acquisitions.
Moderate Growth Ahead
Industry leaders forecast that 2026 will be a year of moderate development rather than dynamic expansion. Sentiment among top executives suggests that the sector remains confident in its potential, yet cautious. Companies are concentrating on pricing discipline, operational efficiency, and selective investment in assets, human capital, and retail network development.
Among key priorities for the near future, 35.7% of respondents indicate driving growth, 30.5% focus on strengthening financial resilience, and 14.3% emphasize anticipating and responding to evolving customer needs.
“Consumers have not significantly reduced their spending on luxury goods, but they have changed its structure. Recently, sales of luxury product categories have begun to stabilize, while experience-based segments such as travel and hospitality have accelerated markedly. According to Euromonitor data, in 2025 these segments grew by 8%, reaching USD 103.4 billion. This shift demonstrates that today’s customer is less focused solely on the product itself. Increasingly, they expect brands to deliver emotions, unique experiences, and values that extend beyond the material aspect of a purchase. Industry leaders see this trend not as a short-term correction, but as a lasting evolution of the consumption model,” says Dorota Cudna-Sławińska, Partner and Strategy Portfolio Leader in Poland and Central Europe at Deloitte.
Sectors and Regions Expected to Grow the Most
The ongoing shift in consumer preferences toward experiences is also reflected in expectations regarding the fastest-growing categories. More than one-third of respondents (36.2%) believe that luxury travel will achieve the highest growth rate this year. Cosmetics rank next, selected by 18.6% of leaders, followed by apparel and footwear at 17.4%.
Significantly fewer respondents pointed to jewelry (9.3%), watches (9%), fine dining (5%), and leather goods (4.5%).
China maintains its dominant position in the global luxury market, with leaders identifying it as the primary engine of global luxury consumption in 2026. Other regions expected to see significant growth this year include Japan, the Middle East, and India. Growth in Europe and North America is projected to remain moderate, while Africa and South America are expected to see minimal increases.
Consumer Trends: Relationships Over Transactions
Luxury industry executives largely agree on the trends shaping the market in the coming months. Foremost among them is the growing demand for hyper-personalization and data-driven services, identified by 33.3% of respondents as a key factor influencing the sector.
Luxury consumers now expect tailored experiences at every brand touchpoint. This marks a shift from mass communication toward a relationship-driven model in which brands manage customer value throughout the entire lifecycle.
At the same time, experiential luxury continues to gain importance, with one-fifth of respondents highlighting its significant impact on the industry. Additionally, the secondary market is no longer a peripheral phenomenon. Nineteen percent of respondents point to the growing importance of value-oriented approaches and the expansion of second-hand categories.
This development is driven by strong demand for more sustainable solutions, longer product lifecycles, and the perceived investment value of luxury items. In response to changing expectations, 68.3% of companies already offer repair and refurbishment services, 53.8% are developing certified resale programs, and 44.5% collaborate with specialized platforms.
Investments in Brand, Technology, and Channel Integration
In terms of planned capital allocation, 26.2% of executives identify marketing and brand positioning as the primary investment area. One-fifth (20.5%) focus on digital transformation, while 13.8% prioritize sales channel integration and enhancing customer experience.
The brand remains the core source of value, yet its strength increasingly depends on digital infrastructure quality and data-processing capabilities. Artificial intelligence represents one of the most significant developments in this context. Currently, 40.7% of leaders state that their companies are analyzing AI implementation strategies, 41.2% have begun deployment in selected areas, and 11.9% report full utilization in key organizational functions.
AI’s potential spans the entire value chain: product design and innovation (21.3%), marketing and advertising (21.3%), customer relationship personalization (21.1%), and demand forecasting and inventory management (20.6%). Over the next five years, artificial intelligence—identified by 31.7% of respondents as the most transformative factor—will determine operational efficiency and personalization precision.
Designing Responsible Luxury
Sustainability is no longer limited to reporting and regulatory compliance within the luxury sector. It is increasingly becoming an element of strategic business model transformation. More than one-quarter (25.7%) of C-suite executives identify research and development as the most important direction over the next three to five years, while 21.7% focus on circular economy initiatives and product lifecycle management.
Additionally, 16.4% of organizations prioritize reducing environmental impact, and 16.2% emphasize regulatory compliance and reporting. Social aspects and inclusive culture (11.4%) are also gaining importance, influencing brand trust and long-term credibility.
“Brands seeking success must combine material innovation, supply chain transparency, and social responsibility with product attractiveness and brand credibility. Today, sustainability means restructuring the value chain—from design and raw material selection, through manufacturing processes, to lifecycle management. Transparency becomes an operational prerequisite of this model. Digital product passports and traceability systems are moving from pilot stages to infrastructure-level solutions that support scalability and credibility,” adds Julia Patorska, Partner and Sustainability & Climate Portfolio Leader for Poland and Central Europe at Deloitte.
About the Report
The eleventh edition of the “Global Powers of Luxury Goods 2026” report is based on research conducted in August and September 2025 among 420 senior executives from luxury goods companies operating in ten countries. Respondents included board members, supervisory board members, and senior managers directly responsible for key strategic initiatives within their organizations.
The survey covered major market segments, including apparel and footwear, bags and accessories, jewelry, watches, cosmetics, and hospitality. For ten editions, the report primarily analyzed the industry through financial statements, identifying top-performing companies and the segments and regions experiencing growth. This year’s edition introduces a methodological shift and adopts a forward-looking perspective.
