The luxury sector is weathering crosswinds at the moment: On the one hand, military conflict in the Middle East has sent high-earning consumers scattering from the region and purse strings tightening. On the other hand, the emergence of AI and weight-loss medication like GLP-1s means it’s never been so easy for consumers to shop for premium brands, and they have an emerging motivation to do so.
The latest Luxury Monitor from global consulting firm Bain & Co shows growth in the sector has dipped slightly (by -1%) year on year, with estimates for Q1 2026 coming in at -3% on a constant exchange rate.
That said, there are green shoots: A major driver of consumption is the use of GLP-1 weight-loss medications, the report authored by Claudia D’Arpizio and Federica Levato, senior partners at Bain & Co, says. The emergence of the trend “is a very central question, and the macro trend in consumption of so many categories within luxury and outside of luxury, from a sociological and anthropological perspective, is the most interesting topic right now,” Levato told Fortune.
In the soft luxury category, like apparel and footwear, “there is, of course, the enthusiasm of having lost weight and so there is a direct correlation with ‘Let’s buy a new wardrobe,'” Levato explains. “There is more enthusiasm for a shopping frenzy … and it’s directly related to higher consumer confidence.”
