What do luxury leaders see as the opportunities and challenges for 2026?

Agility Research & Strategy has just released its latest study, 2026 Luxury Leaders Pulse. Gathering interviews with over 40 global C-suite executives from a variety of luxury sectors including Rosewood, Van Cleef & Arpels, Dior, Chanel and Harrods, the report provides insights on perceived priorities and challenges – and how they see the luxury sector evolve in the upcoming year.

Here are five key takeaways...

1. The luxury industry enters 2026 with cautious optimism

Luxury leaders are divided about the year ahead. Around 39% expect challenges, while 36% anticipate stability, suggesting a market navigating uncertainty rather than clear growth momentum. Only a smaller share sees strong opportunities or major disruptions, highlighting a broadly balanced but cautious outlook for the sector.

2. Business expectations are stabilising after a slowdown

Sentiment has rebounded slightly compared with 2025 but remains well below the post-pandemic highs seen earlier in the decade. About 45% of executives expect higher business performance in 2026, while another 47% expect results to be similar to 2025, reinforcing a view that the industry is shifting from rapid expansion toward a phase of disciplined growth and normalisation.

3. Geopolitics and cautious consumers are the biggest risks

Luxury executives see macro uncertainty as the primary challenge for 2026. The top concerns include geopolitical instability, consumer trading-down behavior, and inflationary pressures, reflecting growing sensitivity to economic volatility and shifting spending priorities among affluent consumers.

4. Experiences are becoming the central growth engine

The industry continues to pivot toward experience-driven luxury, with 70% of leaders identifying experiential luxury as the leading trend shaping the sector. Wellness-focused luxury, localised brand positioning, and AI-enabled personalisation are also gaining momentum, signaling a shift toward holistic lifestyle engagement rather than product-centric luxury alone.

5. Marketing budgets are shifting toward immersive engagement

Luxury brands are reallocating marketing spend toward experiential and digital channels. Investments are increasing in consumer events, digital media, collaborations, and celebrity ambassadors, while traditional advertising and live-stream KOL marketing are declining, reflecting a strategic pivot toward high-impact brand experiences that drive deeper engagement and conversion.

If you would like more in-depth insights on affluent and HNW consumers across 35 global markets, with relevant data on luxury consumption, luxury trends and shopping patterns, please contact [email protected] for more information

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Agility Research & Strategy is a leading data, insights and consulting firm with a core focus on the affluent and HNW consumer.

Offering a full set of consulting services, and employing the most advanced methodologies, we can help luxury brands decode affluent and HNW consumers’ needs to increase marketing ROI and bottom-line profitability.

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