China’s personal luxury goods market is expected to return to modest growth in 2026, consultancy Bain & Company said on Thursday. The mainland luxury market shrank 3% to 5% in 2025, recovering from a drop of 17% to 19% in 2024. Beauty was the strongest category, rebounding to growth of 4% to 7%, while fashion fell 5% to 8%. Leather goods dropped 8% to 11%, and watches slumped 14% to 17%. The rise of local Chinese brands was a key trend in 2025. Domestic spending accounted for 65% of Chinese luxury spending in 2025, while the secondhand luxury segment grew 15% to 20%.

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