After a challenging 2024 for the luxury industry, Deutsche Bank predicts a volatile recovery for 2025. While luxury sales are expected to remain subdued in the first half of the year, growth is anticipated to pick up in the second half, potentially reaching mid-single-digit growth. Key luxury companies, including Kering (owner of Gucci), Burberry, and Moncler, are forecasted to see sales growth of 3% to 4% in 2025. Although the luxury market faces challenges such as inflation and geopolitical tensions, Deutsche Bank believes consumer demand remains largely unchanged, with people becoming more cautious in spending on luxury goods. In China, the luxury market has faced a decline, but it is expected to recover gradually in the next two years. Brands are focusing on retaining high-net-worth customers and appealing to the middle class, which accounts for half of global luxury consumption.