Bain: Global Luxury Client Base Shrinks to 330M in 2025
A 5% drop in new customer acquisition signals mounting pressure for luxury marketers as aspirational buyers shrink and Chinese demand cools faster than the West.
The global luxury goods market lost 20 million consumers in 2025, shrinking the active client base to 330 million, according to the Bain-Altagamma Luxury Goods Worldwide Market Study. The contraction marks a 15% decline from 400 million in 2022, returning the market to its 2013 size.
Purchase Rates and New Customer Acquisition Decline
Only 40% to 45% of potential luxury consumers made purchases in 2025, down sharply from 60% in 2022. New customer acquisition fell 5% year-over-year compared to 2024, signaling growing challenges for brands to attract fresh buyers.
The personal luxury goods market stabilized at €358 billion globally, down 2% at current exchange rates. However, this flat headline figure masks dramatic geographic shifts, particularly across Asia-Pacific markets.
High-net-worth individuals now account for over 46% of global luxury sales, up from 30% in 2019. Meanwhile, 70% of luxury shoppers expressed dissatisfaction with in-store experiences, and 90% found brand experiences indistinguishable from competitors.
Leighton Cosseboom
Asia-Pacific Shows Sharp Regional Divides
China's luxury market contracted 3% to 5% at constant exchange rates in 2025, driven by structural economic pressures. LVMH reported an 8% year-over-year decline in Asia-Pacific fashion and leather goods sales during the first half of 2025.
Gucci closed 18 stores in China during the same period, marking its sixth consecutive quarter of negative growth. Swatch Group reported slumping demand for OMEGA, Longines, and Tissot brands in the market.
Chinese consumers face real estate pressures, with 60% of household wealth tied to property, alongside youth unemployment reaching 21.3% and deflationary trends. These conditions enabled local competitor Lao Pu Gold to capture 77% overlap with traditional luxury buyers through cultural resonance.
"The era of automatic growth from China is over. Brands must now work three times harder for each yuan of revenue through cultural relevance and operational excellence," said a Bain & Company Luxury Practice Lead.
In contrast, Singapore's luxury sales grew 7% to S$13.9 billion (~US$10.3 billion) in 2025, with tourism accounting for 34% of sales. Indonesia, the Philippines, and Vietnam demonstrated mid-single-digit growth, with emerging markets collectively reaching €45 billion in luxury value, matching China's total contribution.
Leighton Cosseboom
Implications for Marketing and Client Strategies
The 5% decline in new customer acquisition presents immediate challenges for marketing leaders. Aspirational consumers, those spending under €5,000 annually, fell to 60% market share from 75% in 2010, with 45% of Chinese aspirational buyers reducing luxury spending versus 30% in Western markets.
Brands with new creative leadership in 2025 saw stronger engagement. Miu Miu achieved 40% growth through creative director-led collections resonating with Gen Z, emphasizing novelty over heritage while expanding in non-China Asian markets like India.
"We're seeing the fastest polarization in history. Ultra-HNWIs keep spending while aspirational buyers question value at every price point," noted an Altagamma Foundation researcher.
The top 0.1% of clients now generate 37% of luxury value, spending €360,000 (~US$380,000) annually on personal luxury goods. Eighty-five percent of ultra-high-net-worth individuals plan to maintain or increase spending, requiring brands to balance mass-market acquisition with high-touch experiences for top-tier clients through empowered advisers and exclusive offerings.
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