The global luxury market, once buoyed by middle-class shoppers splurging on designer handbags and high-end watches, is facing a reckoning.
In 2024, the personal luxury goods sector shrank by 2%, marking its first contraction in 15 years outside the early COVID-19 downturn. Middle-income households, defined as those earning £42,600 to £125,900 ($56,193 to $166,074) annually, are pulling back from 'aspirational' luxury purchases amid economic pressures.
