Luxury Goods Sales Fall 3%-5% in Q1 2026 as Consumers Shift to Experiences
Updated
Updated · Forbes · Jun 25
Luxury Goods Sales Fall 3%-5% in Q1 2026 as Consumers Shift to Experiences
2 articles · Updated · Forbes · Jun 25
Summary
Bain estimates global luxury goods sales fell 3%-5% in the first quarter from an already weak year-earlier period, extending a two-year slide that took the market to $405 billion in 2025 from $417 billion in 2023.
Consumers are still spending, but increasingly on meaning and personal fulfillment rather than more possessions, pushing brands into what researchers describe as a structural reset rather than a normal cyclical downturn.
Luxury experiences are projected to grow 3%-7% this year, outpacing goods, while resale demand is rising—about half of shoppers now check secondhand options before buying new, and The RealReal reported a 20% increase in pre-loved designer bag demand.
The shift is hitting big brands and core categories: handbag sales are down 10% from their 2023 peak, LVMH's fashion and leather goods division fell 9% in the first quarter, and Louis Vuitton's brand valuation dropped more than 20% to $87.5 billion.
Bain still sees a modest 2%-4% rebound for full-year 2026 to $412 billion-$421 billion, but says recovery will be weaker than after 2008-09 unless brands earn consumers' "permission" with longer-lasting relevance.
Is the pivot to 'experiences' a permanent evolution for luxury, or a temporary trend before the next big product boom?
With luxury sales falling, what are the new, intangible status symbols that the world's wealthiest are now pursuing?
As 'meaning' becomes the new currency, can legacy luxury brands genuinely adapt, or will a new class of provider emerge?
Luxury Industry Q1 2026: Soft Start, Consumer Evolution, and Strategic Tech Adaptation
Overview
The first quarter of 2026 was challenging for the luxury market, as initial hopes for a rebound were set back and the anticipated turnaround was delayed. Despite earlier expectations of growth, the sector's overall outlook remained unchanged, with ongoing downgrades affecting both sales and margins. This subdued performance contrasted sharply with optimistic forecasts, leading to increased investor anxiety. The report highlights how these setbacks, combined with persistent uncertainty, have shaped a cautious mood in the luxury industry as it moves forward.