Even the Ultra-Wealthy Are Tightening Their Belts on Luxury—Here’s Why That Matters
In a surprising twist, the world’s richest individuals are stepping back from luxury spending, and it’s not just a minor shift—it’s a trend that’s raising eyebrows across the industry. But here’s where it gets controversial: Is this a temporary blip or a sign of deeper changes in how the wealthy view luxury?
According to a recent survey by research firm Altiant, interpreted by luxury consultancy MAD, a significant portion of affluent and high-net-worth individuals (HNWIs) are planning to cut back on luxury purchases over the next year. For instance, 20% intend to spend less on designer fashion, while the numbers climb even higher for other categories: 30% for leather goods, 32% for jewelry, and a staggering 44% for watches. And this is the part most people miss—these figures are part of a growing trend, not just a one-off reaction.
The data, gathered in the third quarter of 2025, reveals a structural slowdown in luxury discretionary spending. Veronique Le Bansais, senior partner at MAD, explains, ‘Consumers remain engaged but are increasingly selective, cautious, and value-driven.’ This shift isn’t just about buying less—it’s about buying smarter. For example, while only 15% of wealthy buyers avoided designer fashion in 2019, that number jumped to 25% in the latest quarter. Leather goods saw a similar rise in non-purchasers, from 23% to 31%.
But why is this happening? One bold interpretation is that the post-COVID luxury boom, marked by steep price increases, has made certain categories—like leather goods—less accessible. Meanwhile, travel spending is up, suggesting a broader shift from material luxury to experiential luxury. MAD cofounder Jean Revis confirms this trend, noting that consumers are prioritizing experiences over possessions. Yet, this raises a thought-provoking question: Are luxury brands failing to keep up with evolving consumer priorities?
Interestingly, the data shows polarization within categories. In jewelry, for instance, men over 40 are pulling back, while women are increasing their purchase frequency. Half of female HNWIs reported spending over $13,000 on jewelry in the past year. Geographically, North America stands out as the most promising market, with the highest multiple purchases and lowest non-purchase rates, while Europe appears more cautious.
Here’s the kicker: Despite these shifts, the luxury segment remains robust overall. Le Bansais points out that the number of buyers still outpaces non-buyers, which is good news for the industry. However, the survey also uncovers a surprising sentiment about sustainable luxury. While only 56% of affluents and HNWIs consider it important, 74% are willing to pay more for sustainable products. This paradox suggests that wealthy consumers prioritize safety and quality, especially in categories like beauty.
So, what does this mean for luxury brands? Fashion houses should focus on younger demographics (18- to 39-year-olds) while finding ways to re-engage older consumers. Leather goods brands, in particular, need to address accessibility issues. And here’s a controversial thought: Could the luxury industry’s traditional focus on exclusivity be its Achilles’ heel in an era where value and sustainability are king?
As Revis puts it, this is a ‘moment of insecurity’ for the luxury industry—a time to rethink strategies and understand what truly drives their wealthiest clients. The caution reflected in the survey ties back to broader economic concerns, with 61% of respondents viewing the financial system as unstable and 30% expecting a stock market downturn. Yet, the data also hints at a return to traditional values, with wealthy consumers favoring ‘tradition’ and ‘local’ over ‘modern’ and ‘international.’
What do you think? Is the luxury industry due for a major overhaul, or will it bounce back stronger than ever? Let us know in the comments—this is one conversation you won’t want to miss!
