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We’ve been anticipating for some time that the global luxury market is undergoing a truly significant transformation. In the last few years, consumers have redirected their attention toward experiences that enrich their quality of life, emphasizing well-being above all else as an essential pillar in their spending decisions. Luxury resorts, beauty treatments, and high-end gyms are leading this trend, giving a new focus to the true concept of luxury.
According to a report recently released by the Mastercard Economics Institute, there are currently three very significant trends that explain this shift in consumer preferences toward luxury experiences. They are:
- The growing global inclination toward luxury experiences. This is not an isolated phenomenon, but a global one.
- Wellness resorts are the main drivers of growth in the sector.
- Prioritizing well-being year-round, adapting the offering to each season.
Well, let’s delve into some of these areas in more detail to better understand the figures behind all this movement in global markets.
The rise of luxury experiences
The graph below illustrates how consumers are shifting their spending from traditional luxury goods (such as jewelry, watches, and fashion) to more exclusive experiences, such as high-end beauty treatments and wellness and fitness centers.
Which are the key destinations and which are the notable exceptions that are resisting change (for now)?
In 2024, this trend was especially evident in key markets such as Australia, Thailand, the United Arab Emirates, and the United Kingdom. However, some very significant exceptions stand out that continue to demonstrate particular strength due to old consumption habits:
Japan: We’ve often talked about Japan lately as an epicenter of the luxury industry to watch. The weakness of the yen attracted foreign buyers looking for luxury goods with price differentials that suggested significant discounts.
Kuwait and Saudi Arabia: Spending on traditional luxury products remains robust. In the Middle East, there is still a strong bias toward products rather than experiences, something that is undoubtedly changing with all the new strategies and policies the Gulf countries are implementing to become the global luxury hub over the years.
Leaders in the wellness sector
It’s not difficult to guess which areas within this type of experience market currently stand out among consumers around the world. According to the Mastercard Economics Institute report (and common sense), the leading areas in the wellness sector are:
Luxury wellness centers are leading the growth in luxury experiences, reflecting the emphasis consumers place on personal care.
Premium fitness is also seeing notable growth in markets such as Greece, the United Kingdom, and the United States.
High-end beauty treatments are especially popular in countries such as Australia, the Netherlands, and the United Arab Emirates.
Personalized wellness for each season
Another component worth considering throughout this analysis is seasonality, as each area of wellness finds its place in the different seasons that make up our calendar. Prioritizing wellness isn’t a fad, but a constant that must be taken into account throughout the year. With the evolution of new technologies and the rise of remote work, consumers enjoy greater flexibility to integrate wellness into their daily routines.
Seasonal spending trends
- Premium hair and beauty treatments: Spending is consistent throughout the year.
- Luxury wellness resorts: Predominant in summer, especially in tourist destinations such as France, Italy, Spain, and Portugal.
- Austria: Winter combines skiing and wellness.
- Thailand: Attractive in winter due to its warm climate.
- High-end fitness: Varies by region.
- Winter: Northern Europe.
- Autumn: Mediterranean countries.
- Summer: East Asia.
The future of luxury: Adapting to being, not possessing
Although there is no single formula that defines success in the luxury sector, wellness has emerged strongly as a key growth area. Furthermore, customization and seasonal adaptability are essential to meeting the expectations of much more demanding consumers who have integrated wellness into their daily routines.
This new paradigm is defined by the phrase: “Luxury is not just possessing, but experiencing.” Exclusive resorts, innovative mind-body treatments, and memorable experiences are shaping a future where wellness is synonymous with true luxury.
