Pandora Mather-Lees
Luxury Director, IORMA
IORMA Half Year Luxury report 2026:
The Future of Luxury in 2026: Why Experiences and Technology Are Redefining Prestige
After several years of exceptional growth followed by a period of market correction, the global luxury sector is entering a new phase. Rather than chasing rapid expansion, brands are focusing on what Deloitte describes as a period of stabilisation, selectivity and significance. While demand for luxury remains strong, today’s consumers are spending more money on seeking meaningful experiences alongside exceptional products and expecting technology to enhance every stage of their commercial journey.
Credit: Photo by Quin Bisset Courtesy of Cecil Wright & Partners
This adjustment is reshaping the luxury landscape. From AI-powered personal shopping to immersive hospitality and highly personalised client experiences, luxury is no longer defined solely by what customers own. Increasingly, it is defined by how brands make them feel.
A Market Finding Its Balance
The luxury industry has navigated a turbulent few years. Economic uncertainty, inflationary pressures and changing consumer confidence slowed growth across a lot of categories, particularly personal luxury goods. However, the latest industry outlook suggests the market is entering a more stable phase.
Vogue has said that luxury will make a ‘slow recovery’ in 2026, citing the consultancy Bain, which reported that spending on luxury goods is set to rise 2-4% in 2026 compared to 1% in 2025. In 2025 The Economist reported on the increasing emphasis on services, with ‘soaring’ luxury services prices. This holds true in 2026 with reports that resale tickets for the FIFA World Cup Final were being sold for as much as $2,299,998.85 each.
Rather than signalling decline, this period represents a return to more sustainable growth. Luxury brands are becoming increasingly selective about expansion, focusing on long-term customer relationships instead of short-term sales volumes. The emphasis has shifted from acquiring more customers to delivering greater value to existing business through exceptional service, exclusivity and memorable experiences.
For consumers, luxury purchases are also becoming more intentional. Instead of accumulating possessions, affluent buyers are investing in products and services that offer emotional value, craftsmanship and personal relevance. Quality, authenticity and individuality have become just as important as heritage and brand recognition.
This is a more considered approach to luxury and it is encouraging brands to look beyond the products they sell and focus on the experiences they create. The result is a broader definition of luxury, indeed it is one that encompasses personalised service along with exclusive access and exceptional and meaningful moments alongside beautifully crafted possessions.
Experiences Have Become the New Status Symbol
Perhaps the most significant transformation within luxury is the growing importance of experiences.
Historically, prestige was often communicated through ownership of iconic handbags, watches or jewellery. Today, exclusivity increasingly comes from access rather than acquisition. A private dining experience with a renowned chef, a bespoke wellness retreat, or an invitation-only cultural event may carry greater prestige than another designer purchase.
This evolution reflects broader changes in consumer behaviour. High-net-worth individuals today believe that for them, luxury is about memories, personal enrichment and unique experiences that cannot easily be sourced or even replicated. Luxury travel, wellness, gastronomy and hospitality have therefore become some of the fastest-growing areas of the wider luxury market. Let’s face it, nowadays, right across the consumer consumable spectrum, we have become foodies and lovers of special beverages, all competing to outdo each other to make us feel wonder and awe!
The product itself remains important, but moreover serves as the beginning of an ongoing relationship rather than the end of a transaction, hence the current obsession with storytelling, even with a little drama. For instance, award winning filmmaker Tony Ainsworth, Producer at Southbank Films suggests that to achieve unique recognition for any organisation in a world where there is so much noise, the most efficient use of one’s budget, than a mere social media video blog is to make a short film, beautifully, with a narrative and educational stance. If you can show off your craftsmanship, even better. This can do more for your brand than any amount of social media or traditional advertising.
Technology Is Making Luxury More Personal
While craftsmanship remains at the heart of luxury, technology is becoming one of its greatest enablers.
Artificial intelligence is fundamentally changing how luxury brands understand, serve and retain customers. Rather than replacing the human touch, AI is allowing brands to deliver a level of personalisation that would previously have been impossible.
Client advisers can now access detailed insights into customer preferences, previous purchases and browsing behaviour before a client even enters a boutique. This enables highly tailored recommendations and more meaningful conversations that feel intuitive rather than transactional.
Online, AI is transforming discovery through intelligent product recommendations, virtual styling assistants and conversational shopping experiences. Customers increasingly expect digital interactions to be as personalised and attentive as visiting a flagship store.
Behind the scenes, AI is also improving forecasting, inventory management and supply chain planning. By anticipating demand more accurately, brands can reduce waste while ensuring that exclusive collections remain genuinely exclusive.
Tancredi De Pretto who founded Humanatia.ai, an organisation dedicated to understanding how humans work with tech, teaches delegates through dedicated coaching sessions, how to take responsibility for their adoption of artificial intelligence in the workplace or elsewhere. Training humans to orchestrate probabilistic systems by equipping them with the technical foundations and recognising where and when sound judgment and human taste are required is quickly becoming a valuable investment in AI adoption. A wrong move such as falling for “automation bias” (the cognitive tendency to over-rely or automatically accept machine-generated information without sufficient critical thinking) can mean a loss of reputation for a brand which has taken years to build up. In luxury, it requires a whole new level of sophistication and discernment in transitioning to new ways of working with AI.
The future of luxury technology is therefore less about automation and more about creating seamless, invisible service that anticipates customers’ needs before they express them.
No market is arguably more personal than the passion asset of a prized superyacht and examining the superyacht industry in terms or tech and trends. We spoke with Henry Smith, a seasoned superyacht broker at Cecil Wright, to gain insight into current industry perspectives and the role technology now plays in the sector and within the company’s modus operandi. Artificial intelligence has proved valuable for data cleansing and pipeline management. Additionally, it is also an excellent tool to perform some quick legal checking.
The expansion of the tech industry has been a major driver of new wealth and has introduced a fresh echelon of clients to the company, many emerging from the tech world, including those directly linked to AI.
TRENDS: THE SUPERYACHT INDUSTRY
On the build side, yachting continues to evolve through innovations often led by younger owners with a strong environmental awareness. Hydrogen fuel systems, hybrid propulsion, and advanced battery technologies are increasingly common. Yet, these solutions carry their own environmental costs. Moreover some reports suggest that cryogenic hydrogen storage systems are being phased out due to limited range and there is less enthusiasm, or at least emphasis on sustainable and environmental solutions than previously.
To continue with trends in yachting, the US tech sector, now being a growing client base means that the age demographic is lower in age, from the early 60s to the 40s or late 40s.
Despite the growing trend for American clients, US nationals, whilst they like to travel, are not necessarily well travelled. Consequently, they still seek out the obvious places to go; Monaco, St Tropez, Ibiza, St Barts and so on.
Clients typically take around three yachting trips each year, with destinations such as Croatia proving particularly popular due to stunning scenery and ease of accessibility. According to Smith, a key part of the broker’s role is to accompany clients on their initial trips, providing expert guidance on destinations, cruising itineraries and the best locations to berth and anchor. This is echoed by San Lorenzo UK which believes in full personalisation which goes beyond service levels. San Lorenzo believes the client must be able to customise their vessel to truly reflect their tastes, style and the onboard lifestyle they wish to experience as a tour around any of their interior or exterior spaces confirms.
How do clients find their superyacht broker? More often than not, relationships are built through reputation and personal recommendation. Smith notes that several recent sales resulted from introductions made by mutual acquaintances, commenting: “This is really gratifying as it means we are doing the right thing.”
While the US market remains buoyant, other buyer markets are beginning to emerge. According to Cecil Wright, Smith says Chinese buyers are “quietly creeping up.” However, this remains a highly discreet segment of the market, with many buyers based not in China itself but in established yachting hubs such as the Mediterranean and the Caribbean.
Beyond the financial means to purchase a superyacht, buyers typically require an international outlook. English is the principal language of the global yachting industry and clients must be comfortable communicating with brokers, captains, crew and service providers. Smith observes that many Chinese buyers have accumulated significant wealth through successful domestic businesses without necessarily having an international presence. As a result, they may be less Westernised and less confident communicating in English, which can present practical challenges during the purchasing process.
Interestingly, Camper & Nicholsons’ brokerage and sales business is now under Chinese ownership. As Chinese investment and participation in the sector grows, it will be interesting to observe how this influences the development of the global superyacht market.
Finally we asked Henry Smith how Cecil Wright views the potential for the English market in yachting going forward. Whilst there are some British owners who are incredibly successful and who are buying and selling, it was noted that political uncertainty is perhaps preventing buyers from making big decisions, so the market is viewed as unsettled.
How Digital Innovation Can Support Trust in a Brand
To return to the question of technology, this is also playing a crucial role in protecting authenticity. As counterfeit goods become increasingly sophisticated, luxury brands are investing in digital product passports, blockchain authentication and secure ownership records. These technologies allow customers to verify provenance, confirm authenticity and access detailed information about the craftsmanship behind each purchase.
Digital product passports are expected to become increasingly common over the coming years, particularly as sustainability regulations evolve. Beyond combating counterfeiting, they provide valuable information about materials, repairs, servicing and resale history, helping extend the lifecycle of luxury products.
This is particularly important as the resale market continues to grow. Consumers increasingly view luxury purchases as long-term investments, making transparency and provenance more valuable than ever. These innovations in technology do, in fact, support the overall emphasis on personalisation of the brand for the consumer.
How is Personalisation Becoming the Ultimate Luxury?
One of the strongest themes emerging across the luxury industry is the move towards hyper-personalisation.
Affluent consumers no longer expect simply excellent products; they expect brands to understand their preferences, anticipate their needs and deliver experiences tailored specifically to them. This extends far beyond monogramming or bespoke tailoring.
Luxury hotels remember guests’ preferred room layouts and dining preferences. Fashion brands curate exclusive collections for individual clients. Automotive manufacturers offer highly customised interiors and ownership experiences. Beauty brands are using advanced diagnostics to recommend personalised skincare routines.
Technology enables much of this personalisation, but the objective remains very humanised, that is making every customer feel recognised, valued and understood.
In many ways, this level of thoughtful service has become the new definition of exclusivity.
Sustainability Is Becoming Part of the Luxury Experience
For brands, this creates significant opportunities. Hotels are expanding concierge services that curate very personalised itineraries. Fashion houses are hosting exclusive exhibitions and cultural events. Automotive brands are offering private driving experiences and members’ clubs. Rather than simply creating video marketing blogs, jewellers and watchmakers are inviting clients behind the scenes to meet designers and craftspeople, transforming purchases into immersive brand experiences. Collaborations and partnering with another exclusive ‘maison’ is part of the playbook in 2026.
Sustainability is also evolving within the industry. Consumers now expect brands to demonstrate responsible sourcing, ethical craftsmanship and environmental stewardship without compromising quality or desirability.
Technology is helping brands meet these expectations through greater supply chain transparency, improved traceability and more efficient manufacturing processes. Digital authentication also supports repair, resale and circular business models, allowing luxury products to retain value over longer lifecycles.
Rather than treating sustainability as a separate initiative, leading brands are integrating it into the overall customer experience, reinforcing the enduring values of quality, longevity and craftsmanship that have always underpinned luxury.
We spoke to Christopher Walkey, the US agent for luxury sparkling wine brand Mare Santo. Produced in Slovenia, Mare Santo represents a significant investment in both craftsmanship and sustainable production. Each bottle is aged for 24 months, resting 20 metres beneath the Adriatic Sea, where the constant pressure and stable temperatures refine the wine’s structure, depth and flavour profile while creating a distinctive sensory experience.
Walkey explains that Slovenian winemaker Igor Tomažič revived the traditional practice of cooling bottles in streams, adapting it into an innovative underwater ageing process. Each bottle is also individually handcrafted, with marine crustaceans adorning the exterior. According to Walkey, sustainability was a fundamental consideration in the brand’s development, and viewed as integral to achieving true luxury status.
Mare Santo demonstrates how sustainability can enhance luxury by combining handcrafted, small-batch production with a natural underwater ageing process that works in harmony with the marine environment. Its emphasis on provenance, traditional craftsmanship and minimal-intervention ageing reflects the growing expectation that luxury products should deliver not only exclusivity and exceptional quality but also responsible production values, along with the added novelty factor.
Sustainability, nevertheless, appears to be entering a more mature phase. As luxury marketing consultant Joshua Matvichuk, Founder of Contra Consulting observes, consumers are becoming less responsive to actual “eco-signalling” and increasingly drawn to authenticity, craftsmanship and trust. For luxury brands, the opportunity lies in embedding responsible practices naturally into exceptional products and experiences, allowing sustainability to reinforce, rather than define, the luxury proposition.
Some Predictions on the Future
The luxury market of 2026 looks very different from that of just a few years ago. Success is no longer driven simply by product launches or store openings, but by the ability to create meaningful relationships with increasingly discerning customers.
Experiences for the last few years have been as valuable as possessions. Artificial intelligence is enhancing the personal service which defines luxury. This means that digital technologies are strengthening trust, authenticity and sustainability whilst consumers are becoming more selective. Value here is the crux: How does the user of a luxury product interpret value?
For luxury businesses, the challenge is not to choose between tradition and innovation. The future belongs to brands that combine timeless craftsmanship with intelligent technology, using AI and digital tools to increase margins and to create more human, more personalised and more memorable experiences. Now we are more connected globally, luxury needs to be about rarity and experience, but those qualities will be measured not only by what is ‘owned’, but by the experiences people enjoy and the relationships they build with trusted companies.
Summary
To conclude, with the global luxury market valued at approximately €1.48 trillion, including €363 billion in personal luxury goods, the January 2025 Bain & Company and Fondazione Altagamma Luxury Study suggests the sector is evolving. Luxury is always resilient, because excellence pervades, but consumer priorities are changing. Experiences perform well while buyers of personal luxury goods are much more discerning, they need to be enchanted to buy and the offer must have real value and authenticity. To be clear, many brands are struggling to show growth and profit.
Our interview with Joshua Matvichuk, reflected this theme. He believes luxury is returning to its foundations, where craftsmanship, heritage and exceptional products matter more than branding. While the traditional middle market struggles, independent makers and the very highest end of the market continue to attract buyers looking for genuine quality and lasting value.
He believes the industry is shifting from a ‘branding first’ mentality to a ‘product first’ philosophy. He also highlights a wider cultural movement towards traditional conservatism, whereby the buyer needs reassurance, permanence and credibility in uncertain economic times. This is driving renewed appreciation for family owned businesses, specialist manufacturers and brands that have resisted the pressures of mass commercialisation.
His observations extend beyond fashion into watches, fine art, classic cars, hospitality and wine. He sees the same pattern emerging across every sector; independent brands, smaller galleries and specialist producers are gaining momentum because they offer expertise, transparency and genuine relationships with collectors and clients. At the same time, major luxury houses are reassessing their strategies: Exclusivity alone is no longer sufficient to guarantee desirability. Exceptional products alone won’t afford you sufficient edge.Whether launching a luxury wine, watch, hotel or fashion house, brands must first establish cultural legitimacy.
Cultural legitimacy demands respected advocates, authentic stories, meaningful partnerships and genuine relevance within their communities. Without this cultural credibility, even the finest product may struggle to gain traction. Perhaps this is where the specialist documentary film can propel a brand to a new level.
Our expert insights reinforce one of the central conclusions of this report. The future of luxury will not be determined by the largest marketing budgets or the biggest global groups. Success, nay even survival, will belong to brands that combine exceptional products with authentic storytelling, cultural relevance and a clear sense of place within their world. These qualities build trust and deepen emotional connection as well as creating enduring value. In a sophisticated market, consumers will seek meaning, and they will use that to justify their purchasing decisions as much as the ownership sentiment itself. Authenticity therefore, in the widest sense,is perhaps the overarching competitive advantage for the luxury sector in the years ahead.
Written by Pandora Mather-Lees
Researched by Francesca Wheatley
Sources:
Deloitte – Global Powers of Luxury 2026
Bain: Luxury In Transition: Securing Future Growth 2025
The Economist – Why the ultra-rich are giving up on luxury assets
IORMA will be submitting a more specific update on luxury as it applies to the art world after the auction season.