By 2026, Millennials and Generation Z are expected to account for 75% of luxury goods buyers, fundamentally reshaping the luxury landscape. This demographic shift is driving brands to rethink their approach to design, marketing, and customer experience to meet the values and expectations of younger consumers.

Gen Z spending is growing twice as fast as previous generations and is expected to surpass Baby Boomer spending by 2029, fueled by $15-20 trillion in wealth transfers.

Younger consumers cite exclusivity as a driver for increased luxury spend, 11 percentage points above the average. However, they redefine luxury beyond affluence, using purchases to signal status, image, and self-definition. 81% of customers under 35 cite design and creativity as their primary purchase driver, pushing brands toward greater innovation and authenticity.