Goldman Sachs: US Luxury Market Expected to Lead Global Recovery in 2027

A report by Goldman Sachs projects that the global luxury goods industry will recover from sluggish sales, with revenues for major listed luxury brands forecast to grow by 7 per cent in 2027. The US is expected to remain the 'bright spot' for the market, even as geopolitical tensions in the Middle East continue to affect consumer spending decisions. The report noted that sharp price increases, which rose by an estimated 60 per cent between mid-2019 and mid-2026, contributed to the previous slowdown in growth.

Despite facing challenges such as China's property market slowdown, higher interest rates, and US tariffs in 2025, the forecast suggests a market recovery. The report highlighted that diminished consumer interest, driven by aggressive price increases and limited innovation, was a key factor in the industry's recent struggles.