India's luxury market projected to reach 12.1 billion dollars by 2025

The global luxury market remains resilient despite continued macroeconomic and geopolitical disruptions, valued at 1.5 trillion dollars in 2025, according to Euromonitor International's World Market for Luxury Goods 2025 report.

The industry is currently undergoing a significant transformation, shifting from purely product-centric sales to experience-driven engagement, with "wellness, lifestyle and emotional resonance... emerging as new markers of status," notes Fflur Roberts, global insight manager for luxury goods at Euromonitor International.

Physical stores accounted for 81 percent of personal luxury goods sales in 2025, underscoring the enduring importance of in-person engagement; remarkably, 52 percent of high-income shoppers prefer shopping in-store for fashion, a jump from 36 percent in 2023.

India, in particular emerges as a significant player

Among the fastest-growing markets, South Africa (15 percent), India (10 percent), and the United Arab Emirates (9 percent) are leading the charge. India, in particular, is emerging as a significant player, with its total luxury market value projected to reach 12.1 billion dollars by 2025 and expected to achieve a staggering 74 percent compound annual growth rate (CAGR) over the forecast period.

Luxury spending overall is shifting towards experiential categories, as younger buyers increasingly seek unique experiences over products. Experiential luxury, including luxury travel and hospitality, was the fastest-growing segment, rising 8 percent in 2025 to reach 103 billion dollars.

New consumer segments

The luxury sector is increasingly being influenced by the 60+ age group, who are growing in affluence and seeking sophistication and indulgence through luxury offerings that enhance their quality of life, such as wellness travel and age-inclusive luxury skin care. This, combined with the consumer pivot towards experiences and lifestyle as new status markers, is prompting brands to reimagine their physical stores as cultural destinations that offer high-end hospitality and concierge-level service.

Roberts concluded that the future growth of the luxury sector "will depend on its ability to adapt to these evolving consumer opportunities" by rethinking premium experiences through the lens of longevity and conscious indulgence.