The luxury sector is weathering crosswinds at the moment: On the one hand, military conflict in the Middle East has sent high-earning consumers scattering from the region and purse strings tightening. On the other hand, the emergence of AI and weight-loss medication like GLP-1s means it's never been so easy for consumers to shop for premium brands, and they have an emerging motivation to do so.
The latest Luxury Monitor from global consulting firm Bain & Co shows growth in the sector has dipped slightly (by -1%) year on year, with estimates for Q1 2026 coming in at -3% on a constant exchange rate.
That said, there are green shoots: A major driver of consumption is the use of GLP-1 weight-loss medications, the report authored by Claudia D'Arpizio and Federica Levato, senior partners at Bain & Co, says. The emergence of the trend "is a very central question, and the macro trend in consumption of so many categories within luxury and outside of luxury, from a sociological and anthropological perspective, is the most interesting topic right now," Levato told Fortune.
In the soft luxury category, like apparel and footwear, "there is, of course, the enthusiasm of having lost weight and so there is a direct correlation with 'Let's buy a new wardrobe,'" Levato explains. "There is more enthusiasm for a shopping frenzy … and it's directly related to higher consumer confidence."
Levato isn't talking about consumer confidence in the sense of a brighter economic outlook. Rather, she describes the "YOLO" (you only live once) sentiment among consumers, inspired at first by the end of the pandemic and, since then, new options for self-confidence courtesy of drugs like Ozempic and Mounjaro.
For brands, this raises several questions. Levato suggests the key problem facing the luxury sector is how to broaden its client base, be it by generation, region, or income level. Another effect of widespread use of GLP-1s is that more people may fit the sometimes-limited sizing options offered by luxury brands, Levato says.
The luxury sector has long been criticized for not being inclusive (wealth barriers aside). In the era of weight loss drugs, representation for a range of body types appears to have regressed even further. The Vogue Business Fall/Winter 2026 Size Inclusivity Report, released in March, found that of the nearly 8,000 looks presented in the season, 97.6% were in so-called "straight sizes" of U.S. 0-4. The "mid-size" category (U.S. 6-12) had representation of 2.1%, while plus-sizes (U.S. 14+) were just 0.3%.
The latest Luxury Monitor from global consulting firm Bain & Co shows growth in the sector has dipped slightly (by -1%) year on year, with estimates for Q1 2026 coming in at -3% on a constant exchange rate.
That said, there are green shoots: A major driver of consumption is the use of GLP-1 weight-loss medications, the report authored by Claudia D'Arpizio and Federica Levato, senior partners at Bain & Co, says. The emergence of the trend "is a very central question, and the macro trend in consumption of so many categories within luxury and outside of luxury, from a sociological and anthropological perspective, is the most interesting topic right now," Levato told Fortune.
In the soft luxury category, like apparel and footwear, "there is, of course, the enthusiasm of having lost weight and so there is a direct correlation with 'Let's buy a new wardrobe,'" Levato explains. "There is more enthusiasm for a shopping frenzy … and it's directly related to higher consumer confidence."
Levato isn't talking about consumer confidence in the sense of a brighter economic outlook. Rather, she describes the "YOLO" (you only live once) sentiment among consumers, inspired at first by the end of the pandemic and, since then, new options for self-confidence courtesy of drugs like Ozempic and Mounjaro.
For brands, this raises several questions. Levato suggests the key problem facing the luxury sector is how to broaden its client base, be it by generation, region, or income level. Another effect of widespread use of GLP-1s is that more people may fit the sometimes-limited sizing options offered by luxury brands, Levato says.
The luxury sector has long been criticized for not being inclusive (wealth barriers aside). In the era of weight loss drugs, representation for a range of body types appears to have regressed even further. The Vogue Business Fall/Winter 2026 Size Inclusivity Report, released in March, found that of the nearly 8,000 looks presented in the season, 97.6% were in so-called "straight sizes" of U.S. 0-4. The "mid-size" category (U.S. 6-12) had representation of 2.1%, while plus-sizes (U.S. 14+) were just 0.3%.
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