By CultureBanx Team

Diverse consumers are set to contribute 25–30% of U.S. luxury spending by 2025

Black consumers drive outsized value through beauty, fashion, and luxury purchases, but remain underrepresented in brand leadership

Luxury is no longer the preserve of the few. Diverse consumers are reshaping the sector and luxury brands must pay attention or risk being left behind. According to a Bain report, non-white ethnic groups accounted for approximately 20% of U.S. luxury spend in 2019, projected to grow to 25–30% by 2025.

Why This Matters: Multicultural households alone hold tremendous luxury purchasing power, even amid economic volatility. Black consumers’ collective economic power is set to expand dramatically, from about $910 Billion in consumption in 2019 to $1.7 trillion in 2030, according to a report from McKinsey.

Mintel reports that 75% of Black shoppers say luxury goods help express individuality, well above the average. While 67% of them expect luxury brands to include them in marketing and store strategies. 

The luxury spend reaches across several sectors. Nielsen also found that in 2023, Black consumers spent $9.4 billion on beauty products, outpacing unit sales growth and online spend trends. 

Brand Engagement & Loyalty: McKinsey research reveals Black consumers are 2.3 times more likely to switch to Black-owned fashion brands. They are highly sensitive to authenticity and representation in leadership and marketing.

Yet luxury brands often underdeliver. Consumers cite diversity in product, messaging, and leadership among their top purchasing drivers.

The Millennial and Gen Z luxury shopper accentuates value and representation. Black-owned luxury brands like Telfar, Fear of God, and Brandon Blackwood are seeing cultural momentum and grassroots support, reported The Business of Fashion.

Situational Awareness: There is a new contract with culture as luxury consumers are demanding more than elite purchasing, they want visibility, value, and belonging. As spending tightens, it’s possible their loyalty will move toward brands that deliver empathy and equity.

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