Global Luxury Brand Analysis 2024

Key takeaways

Luxury Market Normalization: A post-pandemic adjustment

The global luxury market contracted by 2% to €363 billion in 2024, marking its first decline since the pandemic. This signals a phase of stabilization after the rapid expansion seen in 2022 and 2023, pushing brands to adopt more strategic growth approaches.

Targeted Investments: Shifting priorities across categories

Despite the slowdown, luxury brands maintained their marketing investments, but with significant shifts. Perfume & Cosmetics led in activation growth, while Watches & Jewelry saw a sharp decline, reflecting a move toward high-impact, brand-building experiences over volume-driven activations.

Expanding Horizons: New growth frontiers

As growth slows in mature markets, brands are pursuing geographical and sectoral expansion. Emerging markets led the way, with APAC showing the highest activation growth and India’s luxury market projected to grow by 15-20% in 2025. Despite diversification, China remains dominant, accounting for one-third of global activations. Beyond regional growth, luxury brands are expanding into new categories, including beauty, hospitality, travel, and wellness. This diversification allows brands to engage consumers across multiple lifestyle touchpoints, deepening brand loyalty and influence.

Cultural Power: Luxury as a lifestyle authority

Luxury brands are evolving into cultural agents, embedding themselves into consumer lifestyles through experiential retail and strategic partnerships. Boutiques are no longer just points of sale but have transformed into multi-functional spaces that prioritize cultural storytelling and emotional engagement. At the same time, brands are expanding their affiliations with sports, art, music, and hospitality, fostering deeper, more authentic connections and strengthening their cultural positioning.

The Sports Influence: Beyond the Paris 2024 olympics

Sports played a pivotal role in luxury activations this year, with the Paris 2024 Olympics serving as a global engagement driver for both French and international brands. The Sport & Lifestyle sector has also gained momentum, shaping product design and consumer experiences through community-driven initiatives such as running clubs and exclusive sportswear collaborations.

Looking Ahead to 2025: The rise of cultural branding

Luxury brands must shift from status symbols to cultural entities, focusing on storytelling, exclusivity, and immersive experiences to maintain relevance across both established and emerging markets. Success in 2025 will depend on a brand’s ability to integrate seamlessly into consumers’ lifestyles, creating lasting emotional connections through innovation, authenticity, and strategic expansion.