Experience-led luxury spending rebounds in 2026
According to a new study, luxury spending is set to rebound this year, driven not by luxury goods themselves, but by experiences.
According to a report from Bain & Co. and Altagamma, after two consecutive years of declines, luxury sales are expected to grow 1% to 4% in 2026. Personal luxury sales are expected to reach between €365 billion and €373 billion this year ($413.6 billion to $422.7 billion).
Ongoing tensions in the Middle East continue to weigh on sales. Dubai in the United Arab Emirates was once one of the fastest-growing luxury markets in the world before the outbreak of the war with Iran, but its heavy reliance on tourism means no signs of recovery have emerged yet. The report says luxury sales could grow this year if the Middle East stabilizes and demand in China strengthens.
The report shows the United States became the leader in luxury growth for the first time since 2021. It says U.S. growth is largely driven by aspirational consumers.
Meanwhile, the priorities and spending of affluent consumers around the world are shifting. The report says travel, events, and dining experiences are becoming more important than buying goods used to signal status. It notes that luxury sales are expected to grow 1% to 4%, while experiential spending is set to rise 3% to 7% this year. Bookings for dining, leisure, and entertainment have risen by about 30% this year.
Why experiences are outperforming luxury goods
“The resilience we’re seeing this year in experiential luxury is concentrated in categories that are hard to replicate with money alone: time, access, and meaning. Luxury is increasingly about how people live, not what they own,” said Claudia D’Arpizio, Senior Partner at Bain & Co.
Travel to non-traditional, less-touristed destinations is growing. “Immersive slow travel,” customized slow-travel experiences rooted in exploration and heritage, is also becoming increasingly popular. The report says travel to non-traditional locations grew by 20%.
Legacy travel and Gen Z travel preferences
The report also points to the rise of “legacy travel,” where affluent families travel together, while Gen Z begins adopting their parents’ travel tastes and preferences.
Cruises in particular are attracting many first-time buyers as well as repeat guests. Fine dining and gourmet experiences are being driven by a “less is more” mindset, while art is also returning to growth.
Consumers are changing how they spend for personal and authentic moments
“Consumers are not simply spending more; they are spending differently, seeking moments that feel more personal and more authentic,” said D’Arpizio.
