The global luxury goods industry is set to grow 3% to 5% in 2026 after stagnating in 2025, but aggressive price increases have alienated customers, threatening long-term growth, Bain & Company warned. Growth will be driven by U.S. momentum, resilient demand in Europe and Japan, and improving China trends. The luxury customer base shrunk to 340 million in 2025 from 400 million in 2022. Big spenders, who account for 46% to 47% of the 358 billion euros ($387 billion) personal luxury goods market, show fatigue as spending has plateaued. The price push created “a complete void” for affordable luxury, Bain partner Federica Levato said.