In its latest study on luxury in 2025, the American business consulting firm highlights the key challenges now facing players in the sector in an increasingly complex market. But it also suggests a “survival plan” to address these challenges.
More than ever, navigating the luxury market is no easy feat.
“After a decade and a half of almost uninterrupted growth, the global luxury market has entered a phase of normalization,” observes Alix Partners in its latest study on luxury in 2025. And while “volumes are declining,” “growth, now limited to 1-3% in 2025 according to estimates, is mainly driven by price increases.”
Soaring prices
Between 2019 and 2025, luxury players have increased their prices by 40-50%, according to the firm. This is corroborated by other studies. Noting that average prices rose worldwide during the same period, HSBC even calculated that prices had soared by 52% in Europe and at least as much in the United States.
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