Did you know that in the past year, approximately 35% of aspirational consumers reduced or stopped their luxury spending altogether? Instead, they redirected their money to wellness, financial services, technology, and second-hand alternatives.
That is one of the headline findings from the newly released “True Luxury Global Consumer Insights – 11th Edition” report by BCG x Altagamma, presented just days ago in Milan. The report offers a clear view of how consumer profiles are evolving, posing urgent questions for brand leaders seeking to balance scale with exclusivity in an increasingly divided marketplace.
For luxury brands, this stark shift signals a transformation in the market dynamic, raising concerns about how companies that have long relied on these entry-level consumers will continue to drive growth.
A tale of two shoppers
Why are so many entry-level shoppers pulling back? According to the report, their priorities are shifting. Faced with economic uncertainty, inflation, rising living costs, and a cultural shift towards wellness and financial security, these consumers are choosing to save, invest and spend on experiences or services that enhance their daily lives rather than on products that symbolize status alone. Many are also turning to second-hand options, driven by both affordability and sustainability motives.
Meanwhile, at the other end of the spectrum, the industry’s top clients are showing no signs of restraint. In fact, they are expanding their spending, largely insulated from macroeconomic pressures. Their purchasing power remains closely tied to stock market performance and wealth creation trends, which continue to rise despite broader economic volatility.
This divergence is having a profound impact on market performance. Brands that bet too heavily on attracting aspirational buyers are finding themselves squeezed, underperforming amid reduced discretionary spend—those with more than half of their client base in this segment have seen weaker growth from 2021 to 2024, according to the data. In contrast, brands with stronger top-tier client portfolios continue to outperform, with having a stronger concentration of top-tier clients emerging as the main driver of brand growth in 2024.
Looking ahead, the outlook remains cautious for entry-level shoppers through 2026, while spending among the ultra-wealthy 1% is expected to keep climbing. This growing divide poses a strategic risk: Can brands maintain relevance for the many while catering profitably to the few?
Meet the few fueling luxury
But who exactly are these top-tier clients keeping the luxury industry’s wheels turning?
According to the BCG x Altagamma report, they are a growing group of 900,000+ individuals worldwide whose wealth continues to expand year after year. These are not only high earners but also people with deep financial reservoirs: the HNWI segment (wealth above €20M) and the UHNW segment (wealth above €100M) are projected to grow at 8-9% CAGR to 2030, reinforcing their dominance as luxury’s most reliable client base. Their evolving consumer profiles reveal both opportunities and challenges for brands aiming to build long-term resonance at the top.
- Where are they?
Nearly half of global HNWI wealth is concentrated in North America (€31.8T), followed by Europe with €16.2T and Asia-Pacific (€7.3T excluding China and India). While China accounts for €6.2T, it is India that is emerging as a standout frontier, with its HNW and UHNW segments growing at 11-15% CAGR through 2028—a trajectory global brands cannot afford to ignore.
- What do they buy?
From yachts and jets to cars, design, and fine art, these consumers invest broadly but with clear priorities. Yachts and private jets dominate their discretionary spending, with top-tier consumers representing 100% of the category’s market value, while cars remain a consistent focus, accounting for 36% of spend by value.
Beyond mobility, their purchases increasingly reflect a desire for experiences and products that enhance their quality of life. Wellness and longevity treatments are among the fastest-growing categories, closely followed by design and fine art, as well as wines and spirits. Traditional pillars such as jewelry, watches, and prestige beauty remain strong, but spending is tilting towards categories that prioritize exclusivity and personal enrichment over status signaling alone.
- What’s changing?
The report highlights an emerging “health-as-wealth” mindset, with top-tier clients spending more on wellness and longevity treatments (+8% historic, +10% projected) and investing increasingly in experiences that deliver meaning, health and fulfillment rather than merely display status.
As BCG notes, these consumers are evolving beyond traditional segmentation models. Identifying, recruiting, and engaging them requires brands to move past gut feelings, investing instead in sophisticated data strategies, ecosystem plays, and deeply personalized approaches to remain relevant to this influential few.
Want. Need. Get?
What do these top-tier clients truly want and what are they actually getting?
The report reveals that their expectations are clear. They want connection: meaningful 1:1 relationships that go beyond transactional outreach. Yet, 60% feel overwhelmed by excessive marketing and under-targeted communication, receiving outreach from dozens of brands monthly without personal relevance.
They seek intimacy, preferring exclusive, uncrowded environments that align with luxury’s essence of privacy and personal space. However, 80% would prefer a dedicated, private in-store space, suggesting current retail formats feel too crowded and standardized.
They demand product excellence, valuing craftsmanship, rarity and quality over volume. Still, 89% believe brands are not delivering the product quality they expect, undermining luxury’s very promise.
Finally, they expect recognition, wanting to feel seen and appreciated by the brands they choose. Instead, 70% of potential Very Important Clients are not correctly identified by brands, highlighting gaps in segmentation and CRM that leave loyal spenders feeling overlooked.
This disconnect between what top-tier consumers want and what they get poses a significant strategic risk. Closing this gap is essential for luxury brands if they want to sustain relevance and loyalty among the clients who fuel the industry’s future.
The real luxury? Re-focus
The BCG x Altagamma report lays out a clear roadmap for brands ready to shape luxury’s next era: It’s time to re-focus.
Step one: Prioritize relationships. Top-tier clients expect meaningful connection, not generic outreach. Building human-led clienteling, supported by smart data and real insight, is non-negotiable.
Step two: Elevate experience. Intimacy and exclusivity must replace crowded, standardized retail. Today’s consumers want environments that reflect their rarity—settings that make them feel understood.
Step three: Double down on product quality. Craftsmanship, excellence and authenticity remain at the heart of true luxury. Anything less risks eroding credibility built over decades and weakening the brand’s reason to exist.
Step four: Rethink consumer profiles. Traditional segmentation no longer suffices. As consumer profiles evolve and become more global, more diverse and more digitally empowered. brands must know exactly who matters, what drives them, and how to engage them personally.
In the end, luxury’s next success story won’t be written by those chasing growth, but by those who truly understand the people making it possible.
