Luxury market slows as aspirational consumers pull back: Report

This year’s report delivers insights from 7,000+ luxury consumers based on quantitative surveys, focus groups and in-depth interviews. To analyse consumer spending and behaviour with optimal focus and accuracy, the report also leverages Altrata’s Wealth-X database of more than 150,000 high net worth individual (HNWI) profiles, plus interviews with industry CEOs, executives, client advisors, experts, and partners.

This year’s True-Luxury Global Consumer Insights dives deep into the history of luxury, looking back to its roots in the 1800s when it was the domain of the truly affluent. Over time, the market expanded into ready-to-wear, beauty lines, global flagships, social media, and more, helping it to scale brilliantly—until now. This democratisation brought massive growth, with aspirational consumers eventually accounting for over 70 per cent of market volume. But in a race for scale, some of the soul of luxury was lost, as much of the industry traded exclusivity for reach, exchanging stability for volatility.

As a consequence, the segment that previously fuelled growth is now revealing its fragility: aspirational consumers have declined by 13 percentage points in market share since 2013 as affordability concerns continue to predominate. In the past year alone, around 35 per cent of these consumers either reduced or paused their luxury spending, diverting it to savings and investment, wellness, and second-hand purchases in particular. Around 50 per cent of these customers now feel financially vulnerable.

Today, brands with a client base comprised of more than 50 per cent aspirational consumers are seeing the steepest declines, underperforming sharply over the past 12 months. By contrast, brands that have stayed loyal to core top-tier clients are not just weathering the storm—they’re thriving.

Research shows that clients engage with up to 57 brands and receive 40–60 outreach messages monthly, often lacking personal relevance, leaving 65 per cent feeling overwhelmed and disengaged. They value personalised, context-driven interactions over generic outreach. Additionally, 80 per cent prefer exclusive, private spaces with high-touch service, seeking intimacy over crowded environments. Product excellence matters deeply, with 89 per cent prioritising craftsmanship over mass production. Moreover, 70 per cent of potential top-tier clients are overlooked due to rigid segmentation criteria.

ALCHEMPro News Desk (RR)