A recent McKinsey & Company study forecasts moderate growth for the global luxury market from 2024 to 2027, with annual growth rates of 1-3%, a slowdown from the 5% average observed between 2019 and 2023. The U.S. is expected to lead in luxury spending, with growth driven more by volume increases than price hikes. Jewelry and leather goods are projected to experience the strongest growth, while ultra-high-net-worth individuals remain key drivers, despite their intention to spend less on personal goods.

The report also highlights consumer concerns over declining in-store experiences, a demand for transparency, and the impact of rapid trend cycles on brand identity. Additionally, the resale of luxury goods is gaining traction, although concerns about authenticity persist. By region, the U.S. is projected to grow at 4-6%, China at 3-5%, and Europe and the rest of the world at 2-4% from 2025 to 2027.