After years of exceptional growth and creative exuberance, the luxury industry appears to be returning to a more balanced state. According to Luxurynsight’s latest study for the first half of 2025 — powered by LY Watch and LY Trends — the sector is entering a period of strategic recalibration, marked by moderation, localisation, and renewed cultural purpose.

Based on the analysis of over 100 brands and 10,000 activations worldwide, the report reveals that luxury is facing its first global slowdown in several years, driven by economic headwinds, the reshuffling of creative leadership, and the rise of new technologies. In this context, brands are moving away from volume-driven growth to focus on depth, meaning, and long-term desirability.

Experiential retail and high-impact local activations are reshaping brand strategies, while the Perfumes & Cosmetics segment emerges as a key growth engine. Across categories, “soft luxury” and discreet elegance are replacing logo-centric excess, as a new generation of consumers — Gen Z and Alpha — demand authenticity, innovation, and emotional engagement.

Luxurynsight’s findings illustrate a turning point for the industry: a move from excess to essence, where success is measured not by expansion but by cultural relevance and connection.

Read the full Luxurynsight report: https://bit.ly/3JxmkRk