A model presents a creation from the Prada Spring/Summer 2027 Milan’s Men’s Fashion Week, Italy, June 21. Reuters-Yonhap
MILAN — The global personal luxury goods market is showing signs of a recovery in the second quarter, despite the war in the Middle East, as demand in the U.S. was stronger than expected, consultancy Bain & Company said on Thursday.
In an update to its closely watched annual outlook for the sector, Bain said its base-case scenario now points to a 2 percent to 4 percent rise in personal luxury sales this year. That compares with a previously forecast 3 percent to 5 percent increase published in November, before the outbreak of the U.S.-Israeli war on Iran.
The personal luxury goods market, which was valued at 358 billion euros ($406 billion) in 2025, has contracted over the past two years. It shrank by 2 percent at current exchange rates in 2025, although it edged up 1 percent in constant currencies.
Looking at the broader luxury industry, experiences continue to outpace tangible goods, according to the study, produced with Italian luxury industry group Altagamma.
