Experiences overtaking products in luxury spending

Private jets, yachts expand 9% as travel demand climbs

The global luxury market stayed flat in 2025 at $1.7t (€1.44t), according to Bain & Company, with growth hovering between -1% and +1%.

The report revealed luxury cars, personal luxury goods, and hospitality made up 80% of the market, but the biggest driver is now experiences rather than products.

Since 2023, experiences have been the main growth engine in luxury, while entry-level products continue to struggle.

Luxury hospitality rose 3% to $293b (€251b), led by private villas and higher daily rates. Sustainability and regenerative travel are increasingly important, whilst new destinations are attracting high-end travellers.

Private jets and yachts grew 9% to $39.7b (€34b). Luxury cruises expanded 10% to approximately $7b (€6b).

However, luxury cars, the largest segment, fell by 6% to approximately $647b (€545b). Ultra-luxury performance models grew, but comfort-oriented and entry-level vehicles declined.

Personal luxury goods held steady, with third-quarter gains hinting at cautious optimism.

Fine dining and gourmet food grew 5% to $86.4b (€74b), driven by immersive restaurants and culinary hubs in the Middle East and Southeast Asia.

Fine wines and spirits slipped 5% to $108.6 (€93b), with Champagne and Italian reds performing well, but cognac and whisky lagging.

Fine art fell 9% to $36.2 (€31b), especially in Asia, as galleries closed and contemporary art demand softened.

Overall, luxury experiences grew about 3%, outperforming products, which fell roughly 1%, showing the wealthy increasingly value wellness, social connection, and memorable moments over ownership, according to the report.