Luxury spending is expected to rebound in 2026, driven primarily by experiences rather than luxury goods, according to a report from Bain & Co. and Altagamma. After two years of declines, luxury goods sales are projected to grow between 1% and 4% this year, with personal luxury goods sales reaching between 365 billion euros and 373 billion euros (US$413.6 billion to US$422.7 billion). The shift reflects changing priorities among wealthy consumers worldwide, who increasingly prioritize travel, events, and dining experiences over status goods. The U.S. has emerged as the leading country for luxury goods growth for the first time since 2021, while Middle East tensions continue to dampen sales in markets like Dubai.
Luxury Goods Sales Projected to Grow 1-4% in 2026
The U.S. is now the leading country for luxury goods growth for the first time since 2021, according to the report. Growth in the U.S. is being driven in large part by aspirational consumers. The tensions in the Middle East continue to dampen sales, with Dubai, United Arab Emirates—one of the fastest-growing luxury markets before the Iran war—relying heavily on tourism and showing no signs of recovery yet. The report stated that if the Middle East stabilizes and demand in China strengthens, luxury goods sales could post growth this year.
Experience Spending Expected to Outpace Goods with 3-7% Growth
While luxury goods sales are expected to grow between 1% and 4%, experiences are on track for growth of between 3% and 7% this year, the report said. Bookings in dining, leisure, and entertainment are up around 30% this year. "What we're seeing across experiential luxury this year is resilience concentrated in the categories that offer something money can't easily replicate: time, access and meaning," said Claudia D'Arpizio, a senior partner at Bain & Co. "Luxury is increasingly about how people live rather than what they own."
The priorities and spending of wealthy consumers around the world are shifting, with travel, events, and dining experiences becoming more important than buying status goods for show. Fine dining and gourmet food are being driven by a "less-but-better" mindset, and fine arts are returning to growth. Cruises in particular are drawing many first-time buyers along with repeat customers.
Travel Bookings to Nontraditional Destinations Rise 20%
Trips to nontraditional and less crowded destinations are growing. Travel to nontraditional locations is up 20%, according to the report. "Immersive wayfaring," or bespoke, slow-travel experiences rooted in discoveries and traditions, are also growing more popular. The report also cites the rise in "inheritourism," in which wealthy families travel together and Gen Zers adopt the travel tastes and preferences of their parents.
"Consumers aren't simply spending more; they're spending differently, in pursuit of moments that feel personal and authentic," D'Arpizio said.
FAQ
What is driving luxury spending growth in 2026?
Luxury spending growth in 2026 is driven primarily by experiences rather than luxury goods, according to a report from Bain & Co. and Altagamma. Experiences are expected to grow between 3% and 7% this year, while luxury goods sales are projected to grow between 1% and 4%. Bookings in dining, leisure, and entertainment are up around 30% this year.
Which country is leading luxury goods growth in 2026?
The U.S. is the leading country for luxury goods growth for the first time since 2021, according to the report. Growth in the U.S. is being driven in large part by aspirational consumers.
What are the emerging trends in luxury travel?
Travel to nontraditional and less crowded destinations is up 20%, according to the report. "Immersive wayfaring," or bespoke, slow-travel experiences rooted in discoveries and traditions, are growing more popular. The report also cites the rise in "inheritourism," in which wealthy families travel together and Gen Zers adopt the travel tastes and preferences of their parents.
