Luxury Sector Will Continue to Slip, Bain Forecasts

Luxury consumption will remain soft for the remainder of 2025 across key categories — particularly leather goods, makeup and watches — as price fatigue and macroeconomic turbulence weigh on consumers, according to the latest forecast from Bain & Company. If current trends continue, the sector will contract 2 percent to 5 percent for the year.

While hospitality and experiential luxury continue to grow, physical goods are losing steam in the key markets of the US and China. Demand in Japan…