“Millennials and Gen Z are at the forefront of redefining status, prioritizing identity-defining experiences, wellness, and shared values over possessions. The result is a seismic shift in the definition of what luxury means today.”
The report—which surveyed 3,000 high-net-worth consumers around the world—has one clear warning: meaningful connections have replaced materialism.
The report calls this shift in luxury spending the new “Centurion,” where Gen Z and millennials are driving a new meaning of grandiose living, connecting spending to their personal values.
Gen Z and millennials have grown disillusioned by the glamor of Hermès handbags and Louboutin heels. Essentially, they’re looking for something a bit deeper than expensive outfits.
“Ultimate status has evolved beyond mere ownership of luxury goods; it’s now inclusive of creating unforgettable, identity-defining experiences,” the report says.
The report predicts that by 2028, international spending on luxury hospitality is set to skyrocket from $239 million to $391 billion, with the richest spenders taking the charge. But it’s not only jetsetting to Rome that’s on the rise—wellness, travel, and experience-focused luxury spending overall has been growing at twice the rate of luxury goods.
But there’s another underlying factor why young shoppers are turning to experiential luxury—they’re turning to more sustainable and inclusive brands, which better align with their values.
“Luxury is no longer defined solely by exclusivity; it’s also about inclusivity and cultural relevance,” the report says.
“As we enter this new era of value-driven and experience driven luxury, driven by a new generation of luxury consumers, now is the time for luxury brands to cement their identity and embrace these changes to ensure brand love and longevity into the future,” the report says.
