By Claire Moraa

The global luxury market lost 50 million customers in 2024

The industry has been on a downward shift with a -5% dip in the last two years

The luxury industry has been one of the hard-hit sectors losing 50 million customers in 2024. This is a sharp decline that hasn’t been registered in the last two decades, not even the pandemic period sunk this low. There’s a struggle to remain profitable and exclusive but it is proving difficult especially with the new generation of customers.

Why This Matters: It’s no secret that 69% of luxury consumers today increasingly value experiences, sustainability, and authenticity over traditional status symbols. And while this may reflect the transformational challenges currently facing luxury brands, it also presents a rare opportunity: to redefine luxury not as exclusivity through price, but as differentiation through purpose. Because at the end of the day, it’s not like nobody wants luxury anymore, otherwise, the resale market for these same items wouldn’t be booming as it is.

Luxury brands are slowly losing their grip with only 33% of them registering any substantial growth in 2024 compared to 65% in 2023 and 95% in 2022. In general, the global luxury market is also expected to contract with a –5% dip since 2023. And with the recent trade tariffs adding pressure to cross-border sales, especially between the U.S., China, and the EU, even the most established brands are being forced to rethink their global strategies. In a market where pricing power is no longer guaranteed and aspirational consumers are pulling back, the era of effortless luxury growth appears to be signing out.

What’s Next: The formula that fueled decades of growth for luxury brands is no longer working. Brands need to balance their innovative designs that resonate with contemporary consumers. There are emerging markets that needs to be tapped into but brands will need to tailor offerings to local tastes and cultural nuances while navigating geopolitical and economic fluctuations.

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